Association of Manufacturing Excellence Champions Meeting Building Bench Strength and Succession Planning September 15, 2005 1 Organizational Scheme GM 1S OM OM SS SS SS 1S 1S GT MU NE OM GT GM: General Manager OM: Operations Manager SS: Shift Supervisor 1S: 1st Line Supervisor MU: Make Up Supervisor GT: Go To Employee NE: New Employee NE Vertical Dyad Linkage 2 Business of People The Mission: Provide right LEADERS in the right numbers, in the right skills at the right time to support the business. The Goal: Agile, competent LEADERS capable to move at the speed of business. 3 Aligning Capacity with Operational Requirements 4 Are you forecasting our Leader Requirements as you forecast your business? • • • • • • • • Production needs drive Leader requirements… Production “Queues” the system… How far out are you looking? What skills will you require? Current or New Lead Time from requirement to competency? Who is responsible for managing it? What models do you use? Is it linked with your Business Operations plans and requirements? 5 Leadership Structure Corp PLANT MANAGERS ~4 PRODUCTION MANAGERS ~12 SHIFT MANAGER ~36 1st LINE SUPERVISORS LEADS or “GO TO” MECHANICS (HOURLY) HOURLY EMPLOYEES ~108 ~300 ~2500 6 Bench Strength is Working the Blue Lines Operations Manager Current Shift Supervisor – Future Operations Manager Current Shift Supervisor – Current Job Current 1st Line Supervisor – Future Shift Supervisor Current 1st Line Supervisor – Current Job Current “Go To” Operator – Future 1st Line Supervisor 7 The Growth Challenge Expected Low October 2005 – Managers: 10 – Foreman: 45 Managers: +6 Foreman: +65 Expected High October 2006 – Managers: 16 – Foreman: 110 8 The Right Sizing Challenge Expected High October 2005 – Managers: 6 – Foreman: 18 Expected Low October 2006 Managers: -2 Foreman: -8 – Managers: 4 – Foreman: 10 9 Leadership Pipelines • • • • • Transfers from within the Company Direct Hires Current Make-Up Leaders High Performance Candidates who apply Candidates from the Succession Plan Key Questions: What is the Volume of each Pipeline? What is the Lead Time of each Pipeline? What is the organizational Cause and Effect? 10 Developmental Phases 1. Do the right things 2. Do the right things right 3. Do the right things better, faster and more effectively 4. Innovation and Continuous Improvement Are we doing the right things? It is the Organizations Choice on when to place the 1st Work Day… 11 Each Pipeline has a different mean Lead Time Considerations: • Expected Competency Level on 1st Day • Distribution of Labor within organization • Expected assignment of new employees • Work Area Complexity • Availability of High Performers as resources during “On-Boarding” period • Match-Up with Manager 12 Working the Sums • Ramp Up Schedule by Area – Future State Requirement (Available) • Baseline Current Leaders – Current State (Available) • Pipeline Volume – How many in each pipeline? (Available) • Define Expected Competency Level at First Day – Time and Resources Required Pre-Assignment • Define On-Boarding Plan – Focus in reduce “Time to Competency” Result: Plan of Action and Milestones with Individual Leader Plans by Name, Date of Assignment, and Resources Required 13 Succession Planning Overview 14 Succession Planning • Purpose: To ensure replacements for key (RISK) job incumbents in executive, management, technical, and professionals positions in the organization. • Common Features: – Executive Education and Training – Developmental Assignments based upon a Task Map/Career Path – Mentoring/Coaching – Direct Senior Leadership Involvement 15 Succession Planning Desired Results: – Identify high-potential employees capable of rapid advancement – Ensure systemic and long-term development to replace key (RISK) job incumbents – Provide a continuous flow of talented people – Meet the organization’s need to exercise social responsibility #1 Desired Result: Motivate your highperformance and high-potential employees to long-term commitment to your company 16 Succession Planning • Facts: Among the Top 20 Leadership Oriented Companies; – 85% hold their leaders accountable for the development of direct reports vs. 46% of all companies. – 98% have succession plans in place vs. 60% of all companies. – 85% hired the CEO from within vs. 68% of all companies. – 53% earmark incentive pay towards leader development goals. Source: Hewitt Associates Study of Top 20 Leadership Oriented Companies 17 Performance Reviews 13% of Employees find the Performance Appraisal Process Useful 94% of CEOs Agree with Employees 88% of Employees; Performance Review had a negative impact on their future performance 18 An Interview with John Stewart Managing Director of National Distribution Citibank 19 • • • • • • • • • • • • Potential Interview Questions Why is Succession Planning important to your business? Are Succession Plans important? or just a waste of energy because the decisions are made when the time comes... Do your subordinates have input to whether or not they are in the Succession Plan? should they? Do you know your top performers and are do you "personally" manage their careers? Do you have a Career Map in your organization? Is it meaningful or just a piece of paper... What does building Bench Strength mean to you? How much churn do you have in your leader/management ranks? #s/year Do you analyze the Attrition? Does your HR staff support your needs when it comes to picking leaders? Do you require your direct reports to have succession plans and manage bench strength? Tell us the story of the “best leader” you have hired or developed in the last year? What made them so good? How did you know? When was the last time YOU had a discussion about your future with your boss? How did it go? What was it like? Does your Performance Review System support development of bench 20 strength and feed your development plans? Thanks!!! Joe Barto Training Modernization Group 757-218-8444 Jbarto@tmgva.com 21 Human Capital Management Program Features 1. 2. 3. 4. 5. 6. 7. Matching Candidates Expectations with Work Realities Matching the Person to the Job Providing Coaching and Feedback Providing Career Advancement and Growth Opportunities Making Leaders Feel Valued and Recognized Reducing Stress from Work/Life Imbalance and Overwork Inspiring Trust and Confidence in Senior Leaders 22