How Organizations Are Using Analytics in Succession Decisions
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The document discusses how organizations are using analytics in succession decisions. It provides examples from IBM of how they use analytics to identify future leaders early in their careers through programs like Talent Sparks. It also discusses how IBM uses analytics to increase women in executive leadership through the Reconnections Initiative. The Corporate Service Corps is highlighted as using analytics to provide leadership development while delivering pro bono consulting. Strategic Management Decisions advocates using structural equation modeling and linking assessments to business metrics to identify critical competencies that drive outcomes. The importance of succession planning focusing on business needs rather than just replacement is emphasized.
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Succession Management Metrics - Examples
• Succession Pipeline Depth: Average number succession planning candidates for each role
• Succession Pipeline Utilization: Percent key positions filled by internal succession candidates
• Succession Planning Depth: Percent key roles with succession pool one or more unique candidates
• Succession Turnover: Percent succession candidates who voluntarily left the organization
• Succession Diversity Profile: Percent identified diverse succession candidates (female/minority)
• Succession Slate Uniqueness: Percent unique succession candidates
• Executive Tenure: Average time in role for key incumbents
• Succession Readiness Over Time: Percent change in readiness over time key succession candidates
• Succession Diversification: Percent identified successors outside division/area of responsibility
• Bench Strength: Percent management that has been identified as ready for promotion
• Churn: Hires, promotions and attrition [source, destination, and characteristics – e.g., diverse, high potential]
•High Potential Voluntary Separation Rate: Percent high potential employees who voluntarily left
• Diverse external Hiring Rate: Percent diverse external hires (female/minority)
• High Potential Diversity Profile: Percent identified diverse high potentials (female/ethnicity)
• Diverse Promotion Profile: Percent diverse promotions (female/ethnicity)
• Diverse Separation Rate: Percent females/ethnically diverse employees who voluntarily left
• Internal Fill Rate: Percent open roles filled with internal talent
• High Potential Mobility Rate: Percent high potentials who experienced upward or lateral movement
• High Performer Mobility Rate: Percent high potentials who experienced upward or lateral movement
• Diverse Mobility Rate: Percent diverse talent who experienced upward or lateral movement
• High Potential Development Rate: Percent high potentials who completed 100% targeted development](https://image.slidesharecdn.com/conferenceboardsuccessionmanagementconference-successionanalytics101713v-180709170043/85/How-Organizations-Are-Using-Analytics-in-Succession-Decisions-10-320.jpg)
How Organizations Are Using Analytics in Succession Decisions
- 1. 1 The Conference Board Succession Management Conference How Organizations Are Using Analytics in Succession Decisions October 11-18, 2013
- 2. 2 How organizations are using analytics in succession decisions One of the next practice areas that is being developed in organizations, is the use of analytics to make the best use of data from a variety of sources and present it in a way that increases the organization’s ability to make reliable decisions. This session will highlight examples of how organizations are using analytics in the succession management process. Scott Hamilton – President and Chief Executive Officer Executive Next Practices Institute, Managing Director, NextWORKSTM Scott Mondore, PhD, Managing Partner, Strategic Management Decisions Tom Vines, Vice President, Human Resources, Business and Technical Leadership, IBM Corporation David Underwood, Head Talent Management & Analytics, CSAA Insurance Group
- 3. 3 Differentiating Reporting and Analytics Talent Analytics is the integration of data and the use of analysis, statistics, and consulting to create new insights about our organization that help drive a high performance culture and allow us to better serve our members Reporting vs. Analytics Reporting is focused on operational outcomes and historical information Analytics supplements historical reporting with high level insights and future predictions Reports are pulled to review existing problems for monitoring purposes Analytics regularly reviews current problems, analyzes external contexts, and provides comprehensive assessment of the current state in a summary format only when key issues need to be addressed Reports are generally provided in raw data format or basic summary tables Analytics highlights the key indicators to be explored by drill- down analysis and brings focus to concerns relevant to management Statistics are not part of the process Statistics are used regularly to substantiate findings
- 4. 4 Succession Management Challenges Do you know what makes your best talent, your best? Do you know what skills, experiences, attributes drive success? Do you know how prepared your leaders are to respond to future changes? Do you know who in your high potential population will attrit and why? Do you know if your new hire/new promotion will be successful? Do you know what impact leadership/succession diversity has on business results? Do you know how engagement and culture impact succession? Do you know the fully-loaded cost/ROI of your succession development efforts? Do you know who to develop and how fast to prepare for an anticipated vacancy? Do you know where your key talent gaps are, and how to close them? Do you know if your ready now successors are? Do you know the optimal balance between readiness and opportunity? Do you know if what you are doing is impacting the bottom line? Predicting the Future
- 5. 5 The Analytics Maturity Curve PwC Saratoga
- 7. 7 From Reporting to Predictive Analytics Reporting Analytics Predictive Analytics Turnover Cost/Cause/Timing of Turnover Who will attrit and when Percent High Potential What makes best talent best • Competencies • Assessments • Performance • Personal Attributes • Engagement • Culture • Etc. Who should we focus on, invest our limited resources in
- 8. 8 Predictive Analytics Predictive Analytics succeed only to the extent than they address key business issues, are understandable/consumable, inform those doing the work, and drive key behavior changes leading to measurable improvement.
- 9. 9 Charting a Path Start from where you are Focus on what’s important to the business Look for actionable patterns in your talent Keep it simple, less really is more Make it scalable Fully integrate all talent data Build capability, slowly
- 10. 10 Succession Management Metrics - Examples • Succession Pipeline Depth: Average number succession planning candidates for each role • Succession Pipeline Utilization: Percent key positions filled by internal succession candidates • Succession Planning Depth: Percent key roles with succession pool one or more unique candidates • Succession Turnover: Percent succession candidates who voluntarily left the organization • Succession Diversity Profile: Percent identified diverse succession candidates (female/minority) • Succession Slate Uniqueness: Percent unique succession candidates • Executive Tenure: Average time in role for key incumbents • Succession Readiness Over Time: Percent change in readiness over time key succession candidates • Succession Diversification: Percent identified successors outside division/area of responsibility • Bench Strength: Percent management that has been identified as ready for promotion • Churn: Hires, promotions and attrition [source, destination, and characteristics – e.g., diverse, high potential] •High Potential Voluntary Separation Rate: Percent high potential employees who voluntarily left • Diverse external Hiring Rate: Percent diverse external hires (female/minority) • High Potential Diversity Profile: Percent identified diverse high potentials (female/ethnicity) • Diverse Promotion Profile: Percent diverse promotions (female/ethnicity) • Diverse Separation Rate: Percent females/ethnically diverse employees who voluntarily left • Internal Fill Rate: Percent open roles filled with internal talent • High Potential Mobility Rate: Percent high potentials who experienced upward or lateral movement • High Performer Mobility Rate: Percent high potentials who experienced upward or lateral movement • Diverse Mobility Rate: Percent diverse talent who experienced upward or lateral movement • High Potential Development Rate: Percent high potentials who completed 100% targeted development
- 11. 11 © 2013 IBM Corporation 2013 Succession Management Conference Using Analytics to Drive Succession Plans
- 12. 12 IBM Talent Sparks •Identify future leaders at the beginning of their professional career •Customize education to strengthen business and leadership acumen •Expose participants to current leaders in turn growing their leadership capabilities •Provide opportunities that equip participants with highly valued experience Business Challenge: Recruitment and retention of top talent in the IT Industry in India is fiercely competitive causing adverse impact on our leadership succession planning models. Quantitative Data •Attrition rates •Demographics of current leaders •Pipeline availability Qualitative Data •Cultural norms and environmental influences •Quality of current leadership development programs External Data •Projected trends in the IT Industry •Competitor attrition rates •Factors that influence employees to stay or leave an organization Applying Analytics: Focus Items for Program Model Education Exposure Experience Talent Sparks Model •Early Identification •Customized Development Plan •3-E Approach 3E-Approach 2 Y e a r P r o g r e s s i o n
- 13. 13 IBM Reconnections Initiative Model IBM Reconnections Initiative 1. Identify strong women leaders with high potential that left IBM in the past 10 years. 5. Assimilation activities in addition to on boarding process 2. Perform research on candidates and produce short list 3. Identify roles that best leverage candidate’s skills and capabilities where they are needed the most 4. Enlist Senior Leaders in IBM to conduct an outreach effort Applying Analytics: Business Challenge Increase women executive leadership representation Quantitative Data •Demographics for current leaders •Attrition data on high potential women •IBM Leadership demand and supply data Qualitative Data •Factors that influence women to leave IBM •Quality of recruitment and retention programs •Impact of on boarding efforts External Data •Executive representation by gender for the IT industry •Information on common factors that drive women to leave and rejoin the workforce •Identify high potential women that left IBM within past 10 years. •Conduct research on candidates and have a role in mind before making contact. •Customize roles to leverage candidate’s strengths. •Develop assimilation activities to ensure a positive transition back to IBM. •Continue high touch outreach efforts to minimize retention issues. Focus Items for Program Model
- 14. 14 The Corporate Service Corps (CSC) was launched in 2008 to help provide IBMers with high quality leadership development while delivering high quality problem solving for communities and organizations in emerging markets. Impact •Touched the lives of over 140,000 people by providing more than $70 million worth of pro bono consulting services •By year end, 2,400 IBM employees based in 52 countries will have been dispatched on more than 187 engagements, undertaking 850 team assignments in 34 countries since the program’s founding in 2008. IBM Corporate Service Corps Applying Analytics Business Challenge Increase IBM’s ability successfully collaborate with clients, peers, and communities on a global scale. Quantitative Data •Demographics data on current and future IBM leaders. • Assessment of IBM’s ability to collaborate globally •Cost associated to short and long term global assignments Qualitative Data •Effective leadership skills needed to successfully collaborate in a globally integrated organization •Survey participants to gather feedback for program improvements. External Data •Understanding of cultural and political elements in emerging market. •Analyze programs and approaches that foster global collaboration •Program should equip IBM with leaders that have first hand knowledge of how to function in and appreciate cultural differences. •Build IBM’s reputation as a strong corporate citizen based on the delivery of sustainable solutions to social issues. Focus Items for Program Model
- 15. Strategic Management Decisions Business Focused Succession Planning Scott Mondore, Ph.D. Strategic Management Decisions
- 16. 16 9-Box Pitfalls Measures of Potential are extremely subjective Performance ratings also subjective Talent decisions made in Talent Review meetings based on this information are often driven by two things: § The biggest title in the room § The biggest mouth in the room Having to ‘calibrate’ a measurement tool before the conversation even starts tells you everything you need to know about the rigor of that measurement tool The 9-box never references driving actual business outcomes
- 17. 17 Traditional data analysis includes: • Qualitative analysis or gap analysis (strengths/weaknesses) • Correlation • Regression Advantages of SEM: • Consider multiple independent & dependent measures concurrently • Imply causality • Calculate ROI • Correct for measurement errors SEM is commonly used in other industries (econometrics, market research) Assess Business Impact: Analytic Approach – Structural Equation Modeling
- 18. 18 Assess Business Impact: Linking People Assessments to Business Metrics Critical Business Outcomes Leadership Competencies Personality Factors Experience The linkage analysis will demonstrate the level of impact that each competency, experience, skill, etc. has on individual performance and business outcomes. This allows leaders to focus on the most important competencies, skills, experiences and determine the appropriate level to invest in developing each area. Identifying Critical Competencies/Experiences that Drive Business Outcomes Employee Attitudes Technical Skills/Abilities
- 19. 19 Examine Strengths and Gaps: Business-focused Ready Now ScorecardTM Key Drivers of Business Outcomes Utilize the Ready Now Scorecard to Assess Overall Talent Pool Health… • Refer to the scorecard during talent review sessions; incorporate stakeholder ratings of performance and potential to identify true Ready Now talent • Assess performance strengths and gaps across the entire talent pool
- 20. 20 Business-Focused Metrics Succession/Workforce Planning § Uncover how your key talent performs on key business drivers (competencies, skills, attitudes, personality, experience) § Metrics should focus on: • Talent pool effectiveness based on the key business drivers • Overall talent bench strength—based on performance on the key business drivers • Time-to-fill on key leadership roles • % of internal hires for leadership roles • % of key roles with ready now replacements Build leadership development programs around business drivers
- 21. 21 Next Practices Talent Analytics Leading Your Organization to Next Practices Analytics for Growth, Profitability and Talent Excellence
- 22. 22 Executive Next Practices Institute .
- 23. 23 Next Practices Ideas, processes, concepts and solutions that move us beyond the “status quo”. Not “how are others doing it best” but rather, “where do we go from here that represents a true fundamental shift in value”…
- 24. 24 § An over 200 year old term with much “conventional wisdom” later disproven. § Aristotle defined “common sense” (sensus communis) as an actual power of inner sensation not hampered by external senses.
- 25. 25
- 26. 26 Succession Plan That Works Audit of Your Talent Pool Raising the Bar in Recruiting and Hiring Breakthrough Experiences for High-Potential Managers/Leaders Ongoing Development, Engagement, and Performance Management 26 Talent Machine Getting the Right Leaders in Place Requires a Comprehensive and Systemic Strategy
- 27. 27 Replacement planning is short-term and sets your organization up for long-term failure A Succession Plan That Works: - Is dynamic, based on a pool of qualified candidates - Is continually adapting to needs and available roles - Is reviewed constantly and aggressively - Strengthens the company with every hire or promotion - Uncovers a company’s strengths and weaknesses 27 Succession Planning vs. Replacement Planning
- 28. 28 Talent = a naturally recurring pattern of thought, feeling, or behavior that can be productively applied § Can be measured with validated assessments 28 Auditing Your Talent Pool § Assessment taken individually, audit report is of the whole group • Organization or unit evaluated on talent level, strengths and limitations, recommendations for targeted improvements Talent Model Motivation Influence WorkstyleRelationship Thought Process
- 29. 29 Implants a talent focus in the company Attract and source for the right fit Promote and develop people around company needs Identify and consistently select to standards Steadily increase the talent pool Builds a stronger employment brand 29 Talent Audit Outcomes
- 30. 30 Identify Hi-Potential Leaders and Managers based on: § Talent § Metrics § Developmental Evidence 30 Developing Your Succession Pipeline CEO CFO EVP EVP COO EVP EVP ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ John Smith Sarah Wood Max Fitch § Three candidates should be in the wings for each role within the top three levels of the organization
- 31. 31 31 The Succession Matrix: Putting the Pieces Together Predictive Talent Assessment BusinessMetrics Customer Engagement Experiential Review Development Evidence Employee Engagement Recast or Reconsider Develop and Grow Good Role Fit- Support Star Performers