All Posts Tagged With: "succession planning"
Baldrige Model: How do you govern and fulfill your societal responsibilities?
Item 1.2 in the Baldrige Criteria asks key questions about your organization’s governance system, legal and ethical behavior, and societal responsibilities. The following processes, best practices, and problem areas look at critical issues in this part of the Baldrige model.
Your organization needs processes for:
- Management and fiscal accountability
- Transparency in operations and in the selection and disclosure polices for board members
- Independent internal and external audits
- Protecting stakeholder and stockholder interests, as appropriate
- Evaluating the performance of senior leaders and the board
- Using senior leader and board member reviews to develop and improve performance of these leaders and of the leadership system
- Preparing for and addressing any adverse impacts on society of your products and operations
- Promoting and ensuring ethical behavior in all interactions
- Contributing to the well-being of your environmental, social, and economic systems
- Actively supporting and strengthening your key communities
Best practices to consider:
- Key measures are identified for evaluating the performance and improvement of leaders and of the leadership system.
- Senior leaders and board members use formal processes for reviewing their performance and that of the leadership system and use the results of those reviews, which are typically annual, to improve personal and organizational performance.
- Key processes, measures, and goals for achieving and surpassing regulatory and legal requirements and for promoting…
Baldrige Model: How do your senior leaders lead?
Item 1.1 in the Baldrige Criteria asks key questions about how senior leaders lead. The following processes, best practices, and problem areas look at critical issues in this part of the Baldrige model.
Your organization needs processes for senior leaders to:
- Set, review, and refine your mission, vision, and values
- Deploy your vision and values throughout the organization
- Demonstrate their commitment to your values and to legal and ethical behavior, including promoting an organizational environment that requires legal and ethical behavior
- Create a sustainable organization that includes an environment for performance improvement and leadership, accomplishing your mission and strategic objectives, innovation, and agility
- Create a workforce culture focused on the customer
- Create a learning organization, including participating in organizational learning and developing and enhancing their leadership skills
- Conduct succession planning and develop future leaders
- Communicate with and engage the entire workforce including two-way communication, sharing key decisions, and participating in reward and recognition programs
- Create a focus on action to achieve the organization’s objectives, improve performance, and attain its vision
Best practices to consider:
- Senior leaders, including the president/CEO, are personally and actively involved in designing, implementing, improving, and following these key processes.
- Senior leaders align strategic plans and measurement systems with the organization’s mission and vision, and they talk about the mission…
Best Practice People Management
Last year, Deloitte, The Manufacturing Institute, and Oracle surveyed U.S. manufacturers about their people management practices, which included asking them to identify the key drivers of their future business success. The most profitable of the largest 142 companies in the survey shared three best practices that differentiated them from the least profitable companies:
- They defined a clear and explicit people strategy linked to their business strategy.
- They conducted formal succession planning across the workforce.
- They linked employee pay directly with the productivity of the company or the manufacturing plant.
(from “People Management Practices and Profitability in Manufacturing” by Richard Kleinert, Emily Stover DeRocco, Atanu Chaudhuri, and Robert Maciejewski, IndustryWeek, October 11, 2010)
The Baldrige Criteria address all three best practices with questions about:
- Human resource plans that support your strategic objectives and action plans. The IndustryWeek article notes that, “In many organizations, the HR function does not participate in the strategy development process nor does it have complete visibility into corporate or business unit strategies.” That won’t fly at a Baldrige organization.
- Managing effective career progression for the entire workforce. Organizations that integrate Baldrige develop what the articles calls “a long-term talent management strategy” that looks “beyond the C-suite to prioritize succession of all critical positions based on specific…
Dealing with an Aging Population
I attended a local ASQ dinner last night that featured a panel of quality leaders from 3M, Medtronic, UnitedHealth, and Marvin Windows and Doors. The panel discussed emerging issues that they and their companies are dealing with and one of the top issues is the aging population. Aging customers means that their needs and expectations are changing. Aging workers means that knowledge and skills will be lost and that fewer workers are in line to replace them. And then you have to factor in the very different mindsets of the Gen Y and Millennial generations.
Boston Consulting Group and the World Federation of People Management Associations surveyed more than 5,500 HR professionals in 109 countries recently, asking them to project worker shortages in several professions: manufacturing, utilities, construction, technology, trade, hotels and restaurants, financial services, real estate, health care, and education. The participants projected shortages in the U.S. in all professions by 2020 and they anticipate very high talent shortages in construction, trade, and real estate. By 2030, they expect very high talent shortages in every profession except manufacturing and utilities, which should see high talent shortages.
In other words, everyone is going to need talent that’s going to be very hard…
15Sep2010 | Steve George | 0 comments | ContinuedBest-in-Class Workforce Planning
In January, the Aberdeen Group published a report on Strategic Workforce Planning. Their conclusions sound like responses to Baldrige Criteria questions.
The group surveyed 240 organizations and differentiated best-in-class (BIC) performers from those in the middle and the laggards. They found that:
- The BIC performers saw a 13% decrease in key talent turnover in the past 12 months compared to a 13% increase for the laggards.
- The BIC performers have at least one “ready and willing” successor for 53% of their key positions compared to just 15% for the laggards.
- The BIC performers have workforce plans in place in 90% of their divisions compared to 13% for the laggards.
The group concluded that BIC performers share common characteristics:
- Involvement of senior leaders with workforce planning initiatives
- Ability to define and screen against competencies required for future business success
- Tools to integrate employee data with financial, customer, and other data to create a comprehensive view of the workforce.
If you integrate the Baldrige model, you will improve your performance in each of these areas by improving your performance on these related Baldrige Criteria questions:
- How do senior leaders participate in organizational learning, succession planning, and in the development of future organizational leaders?
- How do you assess your workforce capability and capacity needs,…
Succession Planning at P&G
Procter & Gamble is a role model for succession planning. In an article in Fortune (November 20, 2009), Jennifer Reingold quotes Moheet Nagrath, P&G’s global human resources officer, who said, “Today I could show you the next generation of successors to current leaders, the generation after that, and the generation after that.”
The successors are listed in the company’s Talent Portfolio, a binder containing the names of P&G’s leaders compared to one another over six years on financial performance and the ability to lead and help others lead. Approximately 120 of P&G’s 135,000 employees reach general manager status and become part of the Talent Portfolio. They are evaluated every six months by their bosses, lateral managers who have worked with them, and their direct reports on a GM Performance Scorecard, which has one page of financial measures and another page assessing leadership and team-building abilities. There are at least three possible candidates for each major job, including CEO.
Although this formal process has been in place since 2001, P&G’s emphasis on hiring and retaining the right people can be traced to 1947 when CEO Richard “Red” Deupree said, “If you leave us our buildings and our brands but take away our people, the…
16Dec2009 | Steve George | 0 comments | Continued10 Critical Questions: Your Workforce
Several articles on Baldrige.com have emphasized the value of employee engagement and satisfaction. “Valuing workforce members” is a Baldrige core value, as the Criteria state: “An organization’s success depends increasingly on an engaged workforce that benefits from meaningful work, clear organizational direction, and performance accountability and that has a safe, trusting, and cooperative environment.”
The best way to evaluate how well you are creating an engaged and satisfied workforce is through a Baldrige assessment using the Baldrige Criteria. You can find out how to do that here.
The Criteria consist of powerful questions, rarely asked, about how an organization functions. If you cannot do a full assessment but want insight into how to improve your workforce focus, here are 10 critical questions to ask and answer:
- How do you determine the key factors that affect workforce engagement and satisfaction and assess performance on them?
- How does your culture promote open communication, high-performance work, and an engaged workforce?
- How does your organization benefit from the diverse ideas, cultures, and thinking of your workforce?
- How does your workforce performance management system engage employees and support high-performance work?
- How does your learning and development system address your organization’s core competencies and strategic challenges, action plans, performance improvement, innovation, ethics, employees’ needs,…
