Human Resources Initiatives: Succession Planning Design Team Report

1. Human Resources Initiatives:Succession PlanningDesign Team Report Summary of Findings and Recommendations June 30, 2006

2. Presentation Contents • Project Team • Subject Matter Experts/Stakeholders • Goals & Outcomes • Assessment of Current Model • Breakdowns & Disconnects of Current Process • Recommended Design & Model • Technology Solutions: Interim & Long-term • Key Improvement Recommendations • Competency Recommendations • Critical Success Factors • Return on Investment • Appendix: Change Management & Communication Plan

3. Name Role Tim Evans, GDOL Team Lead Annika Coleman, GDOL Technographer Crystal Armstrong, GTA Team Member Al Brown, GMS Team Member Andrea Fuller-Ruffin, DCH Team Member George Gaines, DHR Team Member Jim Laine, DNR Team Member Jeff Maile, GMS Team Member Phillip Visha, DOC Team Member Jim Davis, DOT Stakeholder Bill Swaim, DCA Stakeholder Elizabeth Jones, GMS GMS Sponsor Succession Planning Project Team

4. Succession Planning Project Team Throughout the design phase, the Team divided into the following task groups / subteams to address specific components of the project: • Design of the Process & Assessment • Technology • Competency (Inter-team linkage) • Communications & Marketing • Change Management

5. Succession PlanningInitiative Goal Create a Succession Planning system that addresses future needs and outcomes, through an integrated strategy which capitalizes on its flexibility and individuality to meet the agency’s needs, while remaining aligned with the state’s goals and objectives.

6. Succession Planning Initiative Desired Outcomes after Implementation • Leaders embrace Succession Planning as a strategic / core process. • SP is aligned with goals/objectives of the State. • Utilize SP throughout all levels of organizations. • Succession Planning requires a successful integration / alignment of Workforce Planning, Performance Management, and Workforce Development (incl. Leadership training)

7. Succession Planning Underlying desire that, even if position(s) are not identified for the agency’s formal SP program, a proactive manager will apply these Succession Planning concepts within their work units as a long-term strategy for increased efficiency and performance.

8. Assessment of Current Succession Planning Process

9. Succession Planning:Current perception • There is no single definition for succession planning, nor an enterprise-wide process to identify and assess needed competencies. • Focuses only on current gaps, rather than forecasting future gaps (almost “just-in-time succession planning”). • Any action is considered an HR “quick-fix,” rather than a strategy to proactively address future needs.

10. Succession Planning CurrentProcess

11. Breakdowns & Disconnects Activity/Task Breakdown/Disconnect Root Cause(s) Priority positions not maintained at enterprise level; Competencies necessary for successful leadership not identified or maintained in system. No established processes to identify key positions; no career paths and position hierarchies in the system; no competency dictionary in PS. ID Leadership Characteristics Individual performance, accomplishment and competency assessment data is not recorded systematically anywhere; no centralized automated assessment tool. Assess Bench Strength / Identify Talent Employee assessment for leadership potential does not happen routinely. Developmental training and activity difficult to track centrally. Train workforce and other modules in PS not utilized to track and monitor training and development activities. Develop Talent System abilities to link development with competencies is not utilized. Development and training activities is not linked to improvement in competencies. Evaluate SP

12. Succession Planning Technology – Current Process Identify Target Jobs Evaluate Potential Develop High Potentials Evaluate Succession Planning GMS’s TAP tool can assess competency, scope and results to create talent matrix [being piloted in several agencies now]. PS CP can identify strengths and developmental areas [Not used at this time]. No Technological solution exists for this step in process at this time. PS SP Module has ability to mark key positions, establish management level, and attach competency profile [Not utilized at this time]. PS CP and Develop Workforce Modules can create career and developmental plans and track training programs [Not being used to full potential]. Breakdown / Disconnect Opportunity

13. Recommendation for proposed Succession Planning ProcessSummary of Findings and Recommendations

14. Succession Planning Model –Recommended Step 2: Evaluate Potential Step 1: Identify Target Jobs Step 3: Develop High Potentials Step 4: Evaluate Succession Planning

15. Succession Planning Model: • Determine scope of your succession planning project. ØEstablish and record leadership levels of all positions • Identify positions that are critical to achieving your strategic goals/objectives and/or your mission. ØEstablish critical positions • Determine characteristics that critical positions have in common as it relates to successful performance. ØRecord competency models and level of impact on the organization and necessary results • Identify how many of these critical positions can be filled from internal sources. ØList positions ready now; short-term; long-term

16. Succession Planning Model – cont. • Evaluate existing staff against the requirements of the positions. ØRecord and evaluate individual accomplishments, competency levels, and potential • Record existing staff that have been identified as having high potential. ØAdd to ready lists • Record and track developmental activities that will be mandatory, optional, and/or unique for existing staff identified as high potentials.

17. Enabling Technologies:Interim SolutionsProcess Recommendations • Identify critical leadership and professional positions • Existing workforce plans • Pen and paper solution by individual managers • Simple electronic summary of consensus by agency leadership • Identify common competencies of critical positions • Existing workforce plans • Pen and paper solution by individual managers • Simple electronic summary of consensus by agency leadership

18. Enabling Technologies:Interim SolutionsProcess Recommendations • Assess qualified and interested candidates against competencies to identify high potential employees • Pen and paper solution by individual managers • Global assessment by groups of managers • Talent Assessment Program (TAP) • Other software such as WingSpan • Identify developmental activities for high potentials and rest of staff, tracking progress towards completion • Pen and paper solution by individual manager or groups of managers • Simple electronic record keeping (Excel, Word)

19. Enabling Technologies:Interim SolutionsProcess Recommendations • Evaluate progress towards closing known gaps for both high potential candidates and the rest of the staff. • Pen and paper solution by individual managers • Global assessment by groups of managers • Talent Assessment Program (TAP) • Other software such as WingSpan • Other pre-development and post-development comparisons

20. Interim SolutionsSystem Options • Make better use of available technology and web-based systems such as Georgia.gov • Modify currently available applications (such as TAP or MuSIC) to aid in competency assessment • Establish manual processes and develop hard copy templates to use while other technological solutions are being developed.

21. Long Term SolutionsSystem Options • Apply resources toward the set up of all necessary foundation tables • Import the identification of key positions, management levels, and other information required for bench strength analysis • Import competency dictionary and other skill related information into database. • Import available development and training opportunities into database • Develop a web-based multi-rater assessment such as TAP

22. Enabling Technologies For Succession Planning

23. Key Improvement RecommendationsShort-Term Solutions Activity Recommendations Benefit(s) Qualitative Quantitative Less time and money than to record/maintain profiles for individual positions. Simplified approach easier to maintain. Can be accessed by decision makers Step 1 – ID Critical Positions Develop/modify leadership model for all mgmt. levels Step 2 – Evaluate Potential Development expense largely incurred; makes use of existing resources. Some instruments already developed; can begin with these immediately Use in-house survey instruments or tools Step 3 – Develop High Po’s Development time and expense needed to do this on-line is high. Manual process more efficient in short-term; less time to set up and train Prepare accelerated development plans Gather feedback from participants; Conduct re-measure of bench strength Step 4 – Evaluate SP Is simple leading and lagging measure of success

24. Succession Planning (Future) Identify Target Jobs Evaluate Potential Develop High Potentials Evaluate Succession Planning Short Term: Manual process – Use; modify LNA leadership model for Sr. Mgmt. level Long Term: Target key jobs in PS; link to appropriate model; record readiness info Short Term: Use manual evaluation or simplified web-based survey to collect info. Long Term: Adapt TAP for web, add candidate profile and planning development tools Short Term: Manually collect participant and stakeholder reaction and impact; record competency and performance post-measures. Long Term: Establish processes to routinely update comp. and perf. evaluation in PS. Short Term: Prepare manual Accelerated Development Plans Long Term: Enter Career paths and development plans into PS; track completion of assignments

25. Stakeholder Feedback Design Team Report Succession Planning

26. Succession Planning End-User Focus Groups • Two Succession Planning End-User Focus Groups totaling 15 employees from agencies of various sizes came together to participate in an unscientific sampling of a proposed Succession Planning/Competency Development-Process. The participants included an array of either front-line supervisors, middle managers, or executives. • The Succession Planning/Competency Development Process encompassed a multi-stepped process which addressed the considerations of and the resources for identifying competencies, assessment tools, developmental activities, and end results of the process. • Based on the feedback received, it was the consensus that the proposed process had enough flexibility to work at any of the targeted leadership levels. Additionally, it was the consensus of both groups that the alternatives to TAP be presented.

27. Succession Planning Design TeamLinkages 27

28. Interim Solutions: Linkages to other HR Initiatives • Competency and potential assessment data needs to be shared with Performance Management, Workforce Planning Systems, Succession Planning and the Workforce Development initiatives. • Succession Planning needs retirement projections and other data, including projections of vacancies, from Workforce Planning system. • Succession Planning Systems need access to performance measurement, results and accomplishment data.

29. Interim Solutions: Linkages to other HR Initiatives

30. Succession PlanningInter-Process Linkages Training / Workforce Development PerformanceManagement Succession Planning Workforce Planning Recruitment

31. Key Activity Is Heavily Dependent On… Identification of Succession Planning Participants Workforce Planning data Identification and Development of Succession Planning Participants Performance Management process holding supervisors and Managers-once-Removed accountable for Succession Planning Individual Development of Succession Planning Participants Workforce Development (and Leadership Institute) processes identified and available for specific competency development Leadership participation in a formal or informal Succession Planning Process Commitment by Executive staff in each agency to acting upon Workforce Planning data and Succession Planning Evaluating potential Succession Planning participants Single statewide Competency Dictionary Key Interdependencies

32. Competency Subteam • Performance Management Design Team recognized need for one competency dictionary for all design teams • Competency Subteam formed with representatives from these design teams: • Performance Management • Succession Planning • Workforce Planning • Workforce Development / Leadership Institute • Team met for three months; developed recommendations

33. Competency Subteam Recommendations • Competency dictionary • determine which dictionary to use for all HR functions • what elements need to be included in the dictionary • Statewide “Core” Competencies • identify core competencies necessary for job success • Leadership Competencies • identify the leadership competencies that leaders need • Proposed a revised layout of dictionary • determine how competencies should be presented • other elements needed in the dictionary • recommended layout

34. Critical Success Factors Design Team Report Succession Planning

35. Challenges to Success • Limited funds available for training. • Who will absorb training costs? • Who will provide training? • Who will provide help desk support? • Establishing new business processes for entering data historically not collected.

36. Return on Investment Succession Planning

37. Succession Planning Return on Investment:Benefits • Agencies are better managed /prepared for drain of knowledge & experience from impending retirements / turnover. • Better defined & faster replacement of key leadership positions result in positive impact on production and/or customer service. • Less transition time required for managerial replacements. Fewer costly mistakes or other negative impact of long periods of recruitment . • Decreased recruitment costs. Less external recruiting since future managers are identified & developed from within.

38. Return on Investment:Costs • SP Development Activities – Implementation and Education for agency staff • Training for managers – Initial and Ongoing costs • Assessment – May be merged with the Performance management system. Will require extra training and time.

39. Succession Planning Key Assumptions • Develop and use manual or simplified electronic processes to: • Identify key positions • Select leadership competency models/needs • Identify high performers • Evaluate potential • Develop high-potentials Cost Benefit Analysis (Short-Term) • Benefits: • Manual Process Solution (money saved or deferred): • Faster implementation of Succession Planning activities xxxx • No extra money on technology required xxxx • Cost of training in manual SP processes largely incurred (money saved by no PS training) xxxx • Simple Electronic Tools: • Survey Platforms exist • Competency assessment tools exist • __________ Total Benefits$ xxx,xxx • Assumed Implementation Costs • Implementation team costs to develop • manual forms and templates. xxxx • Implementation Team cost to develop • manual competency assessment • survey instruments xxxx • Total Costs xxx,xxx • Total Benefits xxx,xxx • Net Benefits $xxx,xxx

40. Succession Planning Key Assumptions • Activate, train and utilize PS Career Planning and Succession Planning modules: • Identify key positions • Select leadership competency models/needs • Identify high performers • Evaluate potential • Develop high-potentials Cost Benefit Analysis (Long-Term) • Benefits: • PeopleSoft Solution: • Enterprise-wide Information can be used by top leadership and central HR xxxx • Competency gap analyses can be performed and monitored real time for each leadership level. xxxx • Development activities can be monitored and updated upon completion xxxx • Other Electronic Tools: • Competency assessment tools can allow for multi-rater participation xxxx • __________ Total Benefits$ xxx,xxx • Assumed Implementation Costs • Agency cost for CP and SP staff module training xxxx • Implementation Team cost to set up all necessary • foundation tables xxxx • Implementation Team cost to create, communicate • revised business processes xxxx • Agency staff time to create position hierarchies, • career paths, and development • plans. xxxx • GMS/GTA cost to provide support xxxx • Total Costs xxx,xxx • Total Benefits xxx,xxx • Net Benefits $xxx,xxx

41. Succession Planning AppendixChange Management & Communication Plan 41

42. Succession PlanningChange Management ConceptsAppendix - Listing of Content • Draft ADKAR model applied to impacted groups • Agency guidelines for using the Bridges model • Sample communication plan template • Sample education suggestions • Tips for handling change

43. Draft ADKAR model applied • The ADKAR model was applied to the following impacted groups. A high level and detailed summary are provided. • Commissioners • HR Directors • HR Professionals • Senior Leadership • Middle Managers • First level supervisors • Employees • GMS Employees (as the HR service provider to state entities)

44. Agency guidelines for using Bridges • The following guidelines will assist state entities in using the Bridges model to assist them with change efforts within their organization. • Identify the impacted groups within your entity • Determine the starting point for each of the impacted groups • Understand who is going to have to let go of what • Make sure that steps are taken to help people let go of the past • Help people through the neutral zone with effective and relevant communication • Help people launch the newbehaviors

45. Sample education suggestions • Break the current GMS succession planning training manual into modular learning/ information components. • Provide click-on links to information within the document. • Provide drop down content clarification capability and hyperlinks to internet and other web based data/information sources and resources.

46. Sample education suggestions - 2 • Create web based FAQ document linked to succession planning information/training manual. • Create audience specific informational CD. • Create video stream “how-to” instructional.

47. Sample Communication Plan Template

48. Tips for handling change • Understand that change is inevitable. • Make sure you’re changing for a good reason. Change is hard enough; don’t do it just for the sake of change. • Keep the lines of communication open, direct, and clear. Change brings about confusion, mistrust, misunderstanding, assumptions, and hurt feelings, among other things. Talking about the how's, whys, and what's of change will help everyone feel in on the changes, and they won’t be quite so skeptical of the process. • Be patient. Effectively managing change takes time, and it must follow a well-thought-out process that can’t happen in a day.

49. Tips for handling change - 2 • Make your mission clear. When people understand the reasons behind a change, they’re much more likely to respond favorably. • Create a Change Management team to help implement all factions of the plan. Now isn’t the time to be a hero and do it all yourself. • Keep an open mind. Change is the time to do just that: change. Following what you’ve always done won’t lead to fresh thinking, better systems, new ideas, and whatever else it is you’re looking for. • Stay flexible. Creating and implementing a plan from start to finish rarely happens, and when it does, it’s usually not the best for everyone. Instead, experts suggest creating a plan, implementing a little at a time, then adjusting as needed.