Succession Planning: The Myths and Realities

2Presenters Patrick Ibarra, The Mejorando Group Patrick Ibarra, The Mejorando Group Patrick Banger, Town Manager, Town of Gilbert Patrick Banger, Town Manager, Town of Gilbert Edith Baltierrez, Administrative Assistant II, City of Phoenix Public Works Department Edith Baltierrez, Administrative Assistant II, City of Phoenix Public Works Department

3 Why Now? Baby Boomerang Effect Baby Boomerang Effect “Many Workers in Public Sector Retiring Sooner” – New York Times, 12/5/11 “Many Workers in Public Sector Retiring Sooner” – New York Times, 12/5/11 More job openings are expected to result from replacement needs than from job growth. More job openings are expected to result from replacement needs than from job growth.

4 What is Succession Planning? …ensures the continued effective performance of your organization by establishing a program to develop and replace key staff over time.”

5 Myths and Realities Pre-Selection – Merit based Pre-Selection – Merit based Re-hire – Walk Out Re-hire – Walk Out Size – Scale Size – Scale Software – Systematic Approach Software – Systematic Approach

6 Myths and Realities Cream Rise to the Top – Opportunity/Initiative Cream Rise to the Top – Opportunity/Initiative Training – So Much More! Training – So Much More! HR Directive – Horsepower HR Directive – Horsepower Poach - Customized Poach - Customized

7 Case Studies City of O’Fallon, Missouri City of O’Fallon, Missouri Outcomes & lessons learned Outcomes & lessons learned Town of Gilbert, Arizona Town of Gilbert, Arizona Current situation, assessment and action plan Current situation, assessment and action plan

Town of Gilbert Current Turnover Rates

# of Employees Type of Turnover Town of Gilbert

Projected Retirement EligibilityFY 11-12FY 12-13FY 13-14FY 14-15FY FT EE's as of 10/24/11 Clerk/Council Community Services Court Development Services Finance Fire Manager's Office Police Prosecutor Public Works Support Services Total *If all elg retired, additional turnover rate5.6%3.7%2.3%3.5%3.0%3.5% Forecast Attrition Rate by Department Will We Be Ready? Town of Gilbert

# of Employees *FY 11/12 includes employees who are eligible to retire in the current fiscal year Forecast Attrition Rate by Department Town of Gilbert

Human Resource Strategies Class and CompBenefits Risk Management;, Environmental & Safety TALENT MANAGEMENT Organizational Strategic Goals and Objectives Organizational Mission, Vision, and Values Competencies Workforce Planning Performance Management Succession Planning Leadership Development Employee & Supervisory Development Talent Management Strategy Talent Management Strategy – An Overview Town of Gilbert

NON- EXISTENT Level 1: Siloed HR Processes Individual HR processes or "silos"; may have systems in place but not connected. Level 2: Standardized Talent Processes Talent processes are consistent and tailorable with some integration; several systems connected through manual processes. Level 3: Integrated Talent Management Heavy focus on connecting systems and proceses; single person/team responsible for talent initiatives. Level 4: Strategic Talent Management Fully integrated processes and systems used to make business decisions talent mgmt. is business driven. References: Bersin & Associates Research and Deloitte Research Talent Management – Stages of Development Town of Gilbert

18 Myths and Realities: Employee Perspective Former Palo Alto City Manager Presentation Next 5 years, good number of key employees retiring… Best time for people to come into Public Service profession!

19 Myths and Realities: Employee Perspective Economy crashes Budget cuts Reduction in force Limited hiring opportunities Competing with highly qualified applicants

20 Succession Planning for You Be Patient and Persevere Strategize Career Path Take Personal Initiative Position Yourself

21 Next Steps… Do NOT wait Make a name for yourself Own your career

22 Succession Planning It’s Working Here!