2. About SKYE
We work with human resource professionals, business
leaders, and company owners on organizational
development efforts to help create greater
alignment of employee performance with business
results:
Individual & Organizational Assessment
Professional Development Training
Coaching
Strategic Planning
Consulting
“We help you optimize your organization’s performance”
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3. Are You Ready for the Unexpected?
Challenge
Developing core leadership capability to drive
organizational competiveness and success
Solution
Leadership development and succession planning:
Align the organization’s human capital
management plan with its strategic plan
4. Our Discussion
1. Study a model on how to define your company's
business focus and competitive advantage
2. Learn why organizational leadership strength is
critical to the support and effective execution of a
competitive strategy
3. Link HR activity and initiatives to building core
leadership capability aligned with organizational
strategy
4. Review a succession planning case study
5. 1
Alignment Challenge
Business Strategy Talent Management Strategy
Desired
Values
Employee
Culture
Profiles
Mission
Actual
Develop-
Long
Short
Employee
ment
Term
Term
Skills
Plans
Initiatives
Goals
6. The Transformation Model
STRATEGY CULTURE
RESULTS
Business
ENVIRONMENT
•Work Culture Norms
•What Business You Are In
Organization
•Current Market Conditions •General Morale •Current Key Result
•Current Products and Services
•Current Mission Areas
•Key Customers •Job Satisfaction
•Core Competencies
•Current Guiding •Current Measurement
•Key Competitors •Worker Attitudes,
•Current Market Position Principles and Tracking Systems
Behaviors, and Beliefs
•Key Stakeholders
•Performance Against Key •Sense of Shared •Resource Inventory:
•Management Attitudes,
•External Influencing Factors Industry Success Factors Vision Equipment, Capital,
Behaviors, and Beliefs
Manpower, Materials,
•Market, Environment, and •Current Distinguishing Strategy •Current Management
Technology
Technology Assumptions Philosophy
•Current Strategic Focus
•Current Financials:
•Current Objectives and Goals Revenue, Cost Structure
CORE PROCESS
SYSTEMS
•Physical Layout Map
STRUCTURE
•Core Processes Maps Coordination Development
•Support Processes Maps •Communication and •Recruitment &Selection
•Organization Chart & Reporting
Information Sharing
•Key Processes Maps Relationships •Orientation
•Decision Making and
•Key Process Variances •Organization Levels & Staffing •Training & Development
Authorization
Numbers
•Process Cycle Time and •Progression & Promotion
•Measurement & Feedback
Efficiency •Span of Control
•Performance Evaluation
•Goal Setting
•Computer Delivery System •Current Groupings and Feedback
•Policies and Procedures
•Linking Mechanisms •Compensation
•Job and Role Structures •Recognition
7. Strategic Direction
1. What is our ideal vision of the future?
2. Who are our customers?
3. What are our deliverables?
4. What are our core competencies?
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8. Achievement Model
O
rg
an
ct r
fa me
C iz
n
io
ul at
tis to
tu io
Sa us re na
C
l
Strategy
Leadership
Execution l
O Int ia ce
nc an
pe er
ra na a
in rm
tio l F fo
ns
er
P
9. Deliverables
• Automobile—transportation,
comfort, prestige, safety
• Clothing—ease of care, comfort,
fashion
• Physical checkup—health,
emotional well-being,
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10. Core Competency
A bundle of skills, technologies, and capabilities
which provide strategic advantage.
1. It must deliver significant value to the
customer
2. It must create differentiation from competitors
3. It must form the basis for entry into new
markets
4. It is not easy for other organizations to
replicate
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11. Examples of Core Competencies
• Toshiba—flat screen displays (broad arena
of applications)
• Sony—miniaturization
• Federal Express—logistics management
• Honda—dealer management
• EDS—systems integration
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12. Competitive Advantage
Business Focus
A long-term strategic position consciously
chosen by an organization in order to add
value to its customers
Competitive Differentiator
A factor within an industry that distinguishes
one organization (competitor) from another
and which results in direct benefits to the
customer
13. Business Focus
• Customer Intimacy
• Product or Service Leadership
• Operational Efficiency
• Product Innovation
• Technology
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14. Competitive Differentiators
• Price
• Quality (accuracy, reliability)
• Product/service features of performance
• Delivery time
• Customer service
• Technical support
• Flexibility
• Channels to market
• Process efficiency
• Quality of inputs into process
• Geographical coverage
15. Strategic Planning Outcome
Performance Targets
Goals related to day-to-day performance
of the organization which must be
achieved on a consistent basis – to stay in
business
Performance Initiatives Developmental
goals that are designed to increase the
capability and long-term performance of
the organization
16. 2
Importance of Leadership Strength
• Alignment / Top down understanding and
communication of mission, vision
• Cascading goals and objectives
• Delegation, empowerment, growth
• Accountability
• Leaders teaching leaders
• Reinforce cultural values
17. Leadership Pressures
• The talent pipeline often lacks sufficient
numbers to replace leaders
• The organization's expansion goals outstrip
the amount of internal talent needed
• Globalization and increasing
technological demands make the
leader's job more difficult than ever
Source: Graziadio Business Report, 2007, Vol. 10. Issure 2
18. Leadership Pressures (Cont’d)
• Problems with strategic direction,
organizational alignment, and employee
commitment continue to exist and are
exacerbated in the current competitive
environment
• Human resources and those responsible for
leadership development feel increased
pressure to demonstrate value
• Leadership development initiatives are not
integrated with business needs, and
consequently, are of questionable value to
internal customers.
Source: Graziadio Business Report, 2007, Vol. 10. Issure 2
19. 3
Linking Talent Management to Strategy
Recruitment &
Selection
Career Performance
Management Management
BUSINESS
STRATEGY
BUSINESS
RESULTS
Training
Rewards Talent &
Management Management Development
Senior
Succession Management
Planning Development
20. Purpose
• Foster a process of building leadership
capability across the lines of business /
support functions
• The emphasis is on developing a broad
spectrum of talent within the
management ranks so that the availability
of internal talent will not be a constraint to
the organization's strategic direction
• Identify the key leadership success factors
21. Desired Outcomes
• Retention and development of high potential
employees
• Builds internal staff capabilities (bench strength)
for the emerging organizational demands
• Maps various succession options
• Facilitates developmental moves across the
organization
• Establishes a professionally managed
organization with the systems in place to ensure
that it will have effective leaders going forward
22. Issues: Changing Nature of Work &
Organization
• Demographics (net-generation, diversity)
• Globalization
• Technology
• Redefined concept of ‘Loyalty’
• Challenges in differentiating high
performers from poor performers
• Wanted rapid career progression
23. Succession Planning
Recruitment &
Selection
Career Performance
Management Management
BUSINESS
STRATEGY
BUSINESS
RESULTS
Training
Rewards Talent &
Management Management Development
Senior
Succession Management
Planning Development
24. A Definition / Succession Planning
A systematic effort and process of
identifying and developing candidates
for key leadership and professional
positions over time to ensure the
continuity of management and
leadership in an organization
25. What is Succession Planning?
•Constant change planning
•An organizational journey, not a project
•Ensuring continuity of leadership
•Identifying gaps in existing talent pool
•Identifying and nurturing future leaders
26. Why Succession Planning
• To identify replacement needs
• To provide opportunities for high potential workers (retention)
• To increase pool of promotable employees
• To support implementation of a strategic business plan
• To guide individuals in their career paths
• To encourage the advancement of diverse groups
• To improve ability to respond to changing environmental
demands
• To improve employee morale
• To cope with the effects of downsizing, attrition, retirements
Organizations supersede Individuals
– visionaries are those who groom their young talent to
take the lead position and to take the cause of the
organization forward
27. Ref: Effective Succession Planning / Matthew Tropiano, 2004
Results
1. Talent Driven
culture
2. Accelerated
Development
3. Vision for future
Education advancement
and Training
Accountability
Self Development
Measurability
Competency driven
Strategically Targeted
Rotational Assignments
Future Competencies Needed
Aligned with Strategic Plan
CEO/ Leadership Commitment & Involvement
Succession Planning Model
33. Case Study - Questions
1. How should this plan be rolled out to employees?
2. How open will this program be—in other words, what
are the pros and cons of letting employees know that
they have been tapped as potential successors in
key areas?
3. What are the first steps you would take to begin
succession planning?
4. What measures could you put in the place to show
progress?
5. How would you demonstrate that this program was a
success?
34. Thank You
for Your Time
Today!
Reach us at:
603-424-9999
877-603-SKYE
SKYE Business Solutions
David Liddell
dliddell@Skye-Solutions.com