1. Margaret Turner Sr. Consultant, Leadership Succession Management Creating a Sustainable Systematic Approach for Leadership Succession Management

2. 2 Objectives n Understand the systematic approach to leadership succession management n Exposure to the succession process n Measure of success in a systematic process

3. 3 Kaiser Permanente n Founded in 1945, nations largest not-for-profit health plan servicing 8.6 million members nation wide n Comprised of three businesses: Kaiser Foundation Health Plan, Inc; Kaiser Foundation Hospitals and their subsidiaries and, The Permanente Medical Groups. n Provides service in 7 regions: Northern and Southern California, Colorado, Georgia, Hawaii, Mid-Atlantic, Ohio and Oregon/Washington n 159,766 employees, 14,087 doctors n Stores medical records electronically on its state-of-the-art KP HealthConnect® system, which gives providers 24-hour access to information at all medical offices.

4. 4 Kaiser Permanente Colorado Region n Providing health care since July 1969 n 491,833 members, 5,500 employees, 843 physicians n Owns and operates 18 medical offices, and three behavioral health and chemical dependency offices, throughout the Denver/Boulder area. n Provides health care in the Colorado Springs service area through a network of 219 primary care physicians and 534 specialists and is affiliated with Memorial Hospital in Colorado Springs and Parkview Medical Center in Pueblo. n In 2008, directed more than $57.3 million to community benefit programs to improve the health of all Coloradans.

5. 5 Kaiser Permanente Mission Kaiser Permanente exists to provide affordable, high-quality health care services to improve the health of our members and the communities we serve.

6. 6 The Problem to be Solved n The Kaiser Permanente executive recruiting department conducted an analysis of past executive level hires, internally as well as externally, and realized that 65% of its executives were recruited externally. n Set a goal of hiring 60% internally, 40% externally n Build upon the national approach for developing leaders to reach our national internal/external hiring goal. n Use a common national framework and region specific processes to support the growth and development of its leaders.

7. 7 Systems Approach

8. 8 To identify and develop internal Leadership Talent So that We have the right talent, in the right place, at the right time, in order to drive business performance now and in the future Kaiser Permanente Colorado Strategic Objective: Focus on People Leadership Development Purpose:

9. 9 Essentials For Leadership Development  Executive Sponsorship  Shared Ownership  Clear Accountability for Identifying and Developing Leaders  Core Business Process  Rigorous Transparent Selection  Focus on Experiential Learning  Long Term Investment

10. 10 Developing the Systematic Approach n Benchmarked against best practices n Gaining sponsorship n Simple for Executives to access and use n Systems build upon each other n Builds leadership capability and capacity n Creates a regional pipeline that feeds into the national pipeline

11. 11 Model of Potential PERFORMANCE ABILITIES PREDICTORS OF POTENTIAL PROMOTABILITY Sustained / Increased Performance over time: Individual Business Unit Technical Skills Leadership Competencies Experiences Organizational Knowledge Learning Agility Engagement (including Culture/Value Fit) Managing Ambiguity / Complexity Enterprise Business Acumen + Aspiration to Advance / Motivation to Lead + Mobile MANAGER ASSESSMENT DEVELOPMENT FOCUS: Advance (High-Potential) Develop Re-Assess CALIBRATION MEETING 12 High Potentials = “Individuals who are likely to advance to the next level (within the next 3 years) through their consistent display and contribution to sustained individual and business unit performance, proficiency in leadership and technical / organizational skills, and demonstration of the behavioral predictors of potential.”

12. 12 Candidate Profile Functional Assessment Leadership Experiences Aspirations Collected via Survey Monkey Leadership Review VPs review direct reports Use Profile Data Executive Calibration Meetings VP & LD consultant Candidate Profile VP Review of Direct Report Engagement & Learning Outcome: ID Hi Potential Executive Group Leadership Review Business Priorities HiPo Model Review HiPo Talent Validate Development Focus and Actions Talent Planning Executive Feedback to Candidates HI-PO Development Pipeline Validation Talent Planning Experience Management Leadership Review Process Executive Communication VP’s communication purpose and process to direct reports

13. 13 Executive Group Leadership Review Orientation/Hay 360 IDP Update/Development Experience Management Peer Learning Group If needed: If needed: Executive Coaching Reassess Readiness Ready for Promotion Executive Leadership Development (Ready now/Ready 1-3 yrs) Case Management Process Leadership Edge Program/Outside Programs Quarterly Executive Updates

14. 14 Measurement of the System Process n Basic succession metrics n Shift in Executive thinking around development n Development moving to the next level in organization n Culture shift toward development

15. 15 Still to Come n Drive the leadership review process down to the supervisor level to create a regional pipeline for all levels of leaders n Integrate recruiting and pipeline work n Generate additional metrics that measure success n Conduct a predictive analysis of future leadership needs n Deepen the understanding of critical roles n Create a peer network for different levels within the organization n Create a formal mentoring process for leaders

16. 16 Three Key Points for Success n Collective sponsorship from Executives crucial n Build development system one piece at a time n Follow through drives success

17. 17 Summary n Building a System Approach n Measuring the outcome n Continue to grow the development culture to reach the summit