Career Development and Succession Planning

1. Career Development and Succession Planning AIMS ConferenceHMT Industry Director, Charlie Brantley August 2008

2. Overview • Workforce Trends • Organizational and Personal Responses to These Trends • Tools to Help

3. U.S. Workforce Realities • The workforce is aging • The rate of retirements from the workforce will continue to accelerate over the next several years • The number of workers to replace them does not exist in the labor force going forward

4. Fed Government Trends • Between 57,000-59,000 Federal employees are projected to retire each year through 2010 • 23 Large agencies are faced with having more than 20% of employees planning to retire by 2012 • 40% of Federal employees are older than 50 years old • Sources: Council for Excellence in Government, Merit Systems Protection Board, and Partnership for Public Service

5. 1990 1980 1970 1960 1950 1940 1930 Why? The Baby Boom Pattern 4.5 The Boom Years: 1946-1964 4.0 3.5 Birth in Millions 3.0 2.5 2.0 Source: The Coming Crisis of the Changing Workforce, The Concours Group 10/17/2006, and the U.S. Census Bureau

6. Different Patterns of Growth by Age Percent Growth in U.S. Population by Age: 2000-2010 Rapid growth in the over-55 workforce Few younger workers entering Age of Workers Declining number of mid-career workers Source: The Coming Crisis of the Changing Workforce, The Concours Group, 10/17/2006, and the U.S. Census Bureau

7. Revenue Agents Eligible to Retire 12/31/08 Of 11,405 RAs in LMSB, SBSE, and TEGE, 29% are eligible to retire in 3 years or less

8. Revenue Officers Eligible for Retirement 12/31/08 Of 4639 ROs in SBSE, 28% are Eligible to Retire Within 3 Years

9. IRS Managers Eligible to Retire 12/31/08 Of 6183 Managers in LMSB, SBSE, W+I, and TEGE, 35% are eligible to retire in 3 years or less

10. IRS Executives Eligible to Retire 12/31/08 Of 115 Executives in LMSB, SBSE, W+I, TEGE, and Appeals, 59 are eligible to retire in 3 years or less

11. Organizational Implications The IRS needs to look at multiple options to fill its labor requirements: • External recruitment • Internal development • Retention incentives

12. Personal Implications Opportunities exist!

13. Where Can You Start?

14. Self-Reflection • If you just start driving, you may find you are not where you want to be when you get there • Think about your interests • Assess your motivation • Am I committed to making the change?

15. “Find Something You Can Be Passionate About” Martha StewartCEO – Martha Stewart Omnimedia

16. OZ Steps to Accountability Do It Solve It Own It See It

17. “If You Think You Can’t, You’re Right” Carol Bartz CEO, Autodesk

18. Planning Steps for Non-Managers

19. Tools for Targeting a Position • Identify the Qualifications of Potential Positions from the Personnel Office • Review Position Descriptions/CJEs • Interview an Employee in the Position • Interview the Manager of an Employee in the Position • Seek Feedback from Others on Issues Impacting the Positions and Your Goals

20. Planning Steps • Don’t Forget to Look Ahead from the Targeted Position-Identify Career Paths • Prepare a Career Development Plan (Also Known as a Career Learning Plan or CLP) • Visit the Human Capital Office website for more details and online tools http://hco.web.irs.gov/workplan/hcstrat/index.htm

21. Tuition Assistance Program (TAP) • A service-wide program providing financial assistance to employees pursing career development opportunities • Priorities are on assisting employees who provide support to front line compliance in support of IRS job-related needs

22. Tuition Assistance Program • For FY08, participants could receive reimbursement for up to 4 courses, including tuition, books, and mandatory fees • Attend on own time (leave or after hours). Leave must be approved by supervisor in advance • Qualifying courses include accounting, finance, mathematics, information technology, management, English, writing, and others related to IRS jobs. • Must get a “C” or better in class or must reimburse the IRS

23. Tuition Assistance Program Eligibility for TAP: • Have to have a fully successful performance appraisal or better • Have to apply during open season • If more than 80 hours of training is provided, must agree to continue to be employed by IRS for 3 times the length of the training period • Visit the ERC website for more details http://erc.web.irs.gov

24. Interested in Leadership? • To compete for a leadership position, an individual needs to develop and be able to demonstrate they have a series of competencies necessary for the managerial or Executive position

25. Leadership Competencies Drive: How Leaders Are selected How Leaders Are recognized How Leaders Are developed Leadership Philosophy and Competencies How Leaders Are evaluated

26. What is a Competency?

27. A competency is……. • An observable, measurable pattern of knowledge, skills, abilities and other characteristics that an individual needs to perform the work roles or job functions of a position successfully

28. Technical Competencies Essential knowledge, skills, and abilities needed to perform a particular job. Example: Knowledge of Tax Law is a technical competency for the position Supervisory Revenue Agent

29. Leadership Competencies • Characteristics of leaders that support the vision, mission, and goals of the organization • The degree to which the characteristic is necessary to achieve the desired organizational results shall vary with the level of the position

30. 21 Leadership Competencies linked to their primary Core Responsibility areas

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32. Succession Planning To address the anticipated shortage of leaders in the IRS: • The agency has developed and implemented the Leadership Succession Review (LSR) system. • The agency continues to employ competitive leadership readiness programs for all levels to build a pool of candidates for future needs

33. Why Leadership Succession Planning? “One of the biggest shortcomings of the traditional people process is that it’s backward looking, focused on evaluating the jobs people are doing today. Far more important is whether the individuals can handle the jobs of tomorrow” • From “Execution-The Discipline of Getting Things Done,” Larry Bossidy and Ram Charan

34. LSR Process Overview • LSR is a web-based process, built around assessing leaders on the 21 IRS Leadership Competencies. It includes: • An assessment of each individual’s leadership readiness and interest/availability • Individual discussions of career aspirations and development plans • Identification of potential candidates for leadership positions

35. STAGE 1- Gather Data Four Stages of LSR Process STAGE2 -Conduct Talent Review Discussions STAGE 3 -Roll up LSR Information to Senior Leaders STAGE 4 -Provide Individual Feedback and Development Ideas

36. LSR Stage 1: Gather Data • Individuals: • Complete demographic page • Input self assessment on 21 leadership competencies • Managers of those individuals: • Assess them on the 21 competencies • Input an overall readiness rating • Ready now, Ready with development, Not ready • Complete an LSR planning matrix capturing information on all their direct report managers

37. Stage 2: Talent Review Discussions • Those managers who assessed individuals will meet with their own manager and discuss: • Current leadership positions, and match individuals they assessed with specific positions (based on readiness and availability) • Talent identified in the process, and strengths, gaps, and development recommendations • Organizational strengths and areas for development

38. Stage 3: Roll up of LSR Information • Executive review and discussion of: • Potential leadership backfills and development plans for the group • Bench strength data from Stage 2 • Competency data from Stage 2, looking at organizational strengths and areas for development

39. Stage 4: Feedback Conversations • Managers provide feedback to each individual they assess. They will: • Review and discuss the assessment, providing feedback from Stage 2 and 3 meetings • Discuss readiness to backfill specific leadership positions • Discuss developmental needs and options, if appropriate

40. Leadership Readiness Programs Programs which help develop the competencies an individual needs for a particular leadership level, include: • Front Line Readiness Program (FLRP) • Department Manager Readiness Program (DMRP) • Senior Manager Readiness Program (SMRP) • Executive Readiness Program (XR)

41. Front Line Readiness Program • Classroom course designed to provide tools for effective team development, communication, coaching, problem solving, life and work balance, and time management. Involves a developmental assignment.

42. Department Manager Readiness Program • Provides aspiring campus department managers with two separate classroom sessions with an intervening period on campus focusing on individual and functional developmental activities. Includes use of a 360 degree assessment process (incorporating feedback from peers, supervisors, and subordinates).

43. Senior Manager Readiness Program • SMRP provides an intensive focus on the senior leadership competencies needed to compete for and effectively perform at the senior level. Course involves experiential activities, a comprehensive simulation, and use of a 360 degree assessment process (incorporating feedback from peers, supervisors, and subordinates).

44. Executive Readiness Program • A one year developmental program based on assessment, curriculum, support, and challenge. Designed for senior managers who aspire to enter the Candidate Development Program.

45. Don’t Miss The Opportunity ….

46. …Plan for your Career Future… • Managers are required to have a discussion with each of their employees about the employee’s career goals. • this is to be done during the year-end performance discussion • All employees are encouraged to take advantage of this opportunity and, in conjunction with their manager, follow-up the discussion with the development of a Career Learning Plan (CLP).

47. Any Questions, Comments or Concerns?