{Succession Planning} Developing Your Next Generation of Leaders IASA Central States Regional Conference November 2014

Intro Meet your neighbor and . . . Share your favorite activity outside of work Share your favorite cartoon character and tell why

Agenda Why Talent Initiatives Get Attention Creating the Business Case for Succession Creating a Talent Advantage: Multiple People & Multiple Roles Re-recruiting Succession Planning Best Practices Creating a Talent Development Plan

What Is Succession Planning? A process that ensures that the right people for the right positions are in place today, tomorrow, and 10 years from now Incorporates best practices concerning recruiting, development, and retention

The Catalysts Why do talent initiatives get attention? The leaders believe in talent development. Key stakeholders see the business case for succession. There is a belief that bad things can happen if nothing happens. Planning for Success Risk Mitigation

Talent Initiatives Get Attention when… Organizations perform significantly below expectations Strategic opportunities arise Competitors outperform in the market

The Business Case for Succession The Importance of Culture “Fit” The High Cost of Turnover INCREASING Diversity in the Work Place

Importance of Culture Fit

The High Cost of Turnover $75,000 position could cost an organization $90,00 plus the added stress, cultural impact, and more…

Increasing Diversity in the Workplace Note to Chad: There is a slide from the initial MBA presentation that we sent to Donna that highlights the desire for promotion by generation. Please insert this slide here. * The take-away is that for Millenials, career advancement is more important than Gen X or the Boomers. I like this because it is counterintuitive.

Generational Differences Traditionalist Boomer Gen X Millennial Y 1927-1945 1946-1964 1965-1981 1982 - 1993 For the first time in history, four generations are working side by side. Different values, experiences, styles, and activities create misunderstandings and frustrations Today, 70 million Baby Boomer will be eligible for retirement in large numbers Generation X, a generation with different sensibilities and priorities than Boomers, will assume positions of leadership When Generations Collide: Who They Are. Why They Clash. How to Solve the Generational Puzzle at Work” Lynne Lancaster and David Stillman

Generational Differences The Baby Boomers Thought Nothing of Getting Up at 5 a.m. to Work - The Younger Generation Doesn’t Think Much of it Either. Jack Welch

Traditionalists KEY WORDS: LOYALTY & LEGACY Traditionalist 1927-1945 Societal Influences Great Depression Roaring 20s WWI & WWII Korean War GI Bill Characteristics Patriotic – Waste Not Want Not Faith in Institutions Military Influence Authoritarian leadership style Don’t complain – Just Deal with it KEY WORDS: LOYALTY & LEGACY Value Logic and Discipline  Don’t Like Change Want to Build a Legacy When Generations Collide: Who They Are. Why They Clash. How to Solve the Generational Puzzle at Work” Lynne Lancaster and David Stillman

Boomers KEY WORD: OPTIMIST Boomer Societal Influences Characteristics 1946-1964 Societal Influences Suburbia TV Vietnam Human Rights Music and Libations Characteristics Idealistic Competitive Not easily led – question authority KEY WORD: OPTIMIST Value Logic and Discipline  Don’t Like Change Want to Build a Legacy When Generations Collide: Who They Are. Why They Clash. How to Solve the Generational Puzzle at Work” Lynne Lancaster and David Stillman

Gen X KEY WORDS: SKEPTICISM Gen X Societal Influences Characteristics 1965-1981 Societal Influences Sesame Street MTV Game Boy PC Divorce Rate Tripled Latch Key Children Characteristics Eclectic Resourceful Self-reliant Distrustful of institutions Highly Adaptive to Change and Technology KEY WORDS: SKEPTICISM When Generations Collide: Who They Are. Why They Clash. How to Solve the Generational Puzzle at Work” Lynne Lancaster and David Stillman

Millennial – Gen Y KEY WORD: ACCESS Millennial Societal Influences 1982 - 1993 Societal Influences Expanded technology Natural disasters Identity theft Terrorism Characteristics Globally connected Cyber literate Personal safety is primary concern Focus on mobile devices KEY WORD: ACCESS Value Logic and Discipline  Don’t Like Change Want to Build a Legacy When Generations Collide: Who They Are. Why They Clash. How to Solve the Generational Puzzle at Work” Lynne Lancaster and David Stillman

Generational Differences: Activity Traditionalist Boomer Gen X Millennial 1927-1945 1946-1964 1965-1981 1982 - 1993 Work in small groups and perform a SWOT analyses on one of the generations What are the strengths? What are potential weaknesses? What are the opportunities? What are the threats to this generation? What can you learn from them?

Creating a Talent Advantage: Multiple People, Multiple Roles As organizational challenges become increasingly complex, multiple leaders are needed to be successful. Top talent values career progression and challenge. Increasing emphasis on “successor planning,” planning to provide talent to meet future challenges and leadership roles.

Learning: Pyramid of Progress A comprehensive method of performance development and assessment for all associates within an organization. Composed of competencies, personal qualities, results measures, and overall goals. Functions as an individualized roadmap for each person across each practice/department in the firm. The Pyramid of Progress is Plante Moran’s foundational model designed to help staff understand the process of developing their skills as professionals in how to serve clients, build practices, and grow and develop each other. It measures staff progression up through the pyramid and helps them set the right goals to build upon existing relationships and competencies and develop new ones. Let’s take client relationships as an example of how the pyramid works. One’s technical skills are their foundation—the basis upon which all else is built. However, to be successful, you have to do more than just possess these skills. You have to be able to communicate them effectively to clients, which results in developing relationships with those clients. As clients become more comfortable and secure in those relationships, staff have the opportunity to provide insights relative to opportunities and business challenges. Once they’ve offered successful solutions based on these challenges and opportunities, clients will look upon staff more and more as their advisor. Over time, it’s possible to attain that highest level of trusted advisor. The most crucial part of the Pyramid is this: Plan, Do, Review, Reflect. There’s a whole lot of people out there who plan, do, and review, yet they neglect the most important part: Reflect. Reflection is where everything comes together, getting those dots to connect. It’s like looking at a Jackson Pollock painting and asking, “What does this mean to me?” The Pyramid is a way for staff to articulate how well they’re serving our clients…to know where they stand, and what they need to do to improve…and it’s linked to our Performance Management system. MOST IMPORTANT THING I DO EACH YEAR

Pyramid of Progress

Pyramid of Progress

Pyramid of Progress: Activity Think about your career journey Where are you on the pyramid? What skills do you need to advance? What can you do differently to advance to the next level?

Pyramid of Progress Plan & Do Time & Tools Schedule Varied Engagements Set CDP Goals Set Learning Plans Set 5-5-7 Plans Include In Meetings Suggest Reading Program “Stretch” assignments Non-Chargeable Firm Assignments Suggest Conferences Match To Mentors Tell Stories Monitor Role Progression Assessments Assign Presentations Question Check & Reflect Dialogue & Reflection “On the spot” Feedback Deliver or review PPAs Discuss CPE Progress Engage in Dialogue Debrief Meetings Ask Questions Show How It’s Done Give Examples Debrief Learning Make Introductions Ask For Their Observations Discuss Partner Criteria Understand Learning Style Encourage “Famous Person” Listen

But sometimes, despite your efforts, the talent you worked so hard to develop, decides to seek greener pastures.

Re-Recruiting Developing and maintaining a close relationship with key staff. Spending quality time with staff. Knowing the answer to the question: “Why do staff members work for your organization rather than another organization?” “Know what you might do if a valued staff member said he or she was leaving – and then do it now”. * Reference: Succession Transition: A roadmap for seamless transitions in leadership. (2011) Bill Hermann & Gordon Krater

Re-Recruiting “… invest a little extra time in making them (staff) feel wanted and appreciated, as if you were attempting to bring them on board for the first time.” Pause and take note of your top performers. Take a moment to thank them. Spend time with them. Offer professional development opportunities for them. Reference: Re-Recruiting: Your best defense against restless feet. Holly Green. Forbes.com, 5/13/11

Re-Recruiting: Activity Find a partner and re-recruit them to stay with your organization What are their pain points? What was difficult about influencing them to stay?

Best Practices in Succession Planning Incorporate succession planning and talent development into your strategic plan. Link leadership competencies to business/organizational challenges. Focus on broad range of key positions, not just the top leader. View the plan as a roadmap to be updated: not a one-time event. Create individual talent action plans that align with key organizational goals and objectives Provide challenge and stretch assignment(s) for top talent

Four Key Questions for Talent Plans What are three key strengths that this staff member possesses? What are three key areas of focus for future professional development that will accelerated the career development of this staff person? What are two specific “stretch” assignments for this person to assist in building their skills in areas that are important to organizational success? What type of assistance, coaching, or mentoring can their supervisor provide to support their professional development?

Talent Scan

Thank you. STAN HANNAH, PH.D. 248.223.3307 stan.hannah@plantemoran.com