Succession Planning and the Schneider Electric case study
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Succession Planning and the
Schneider Electric case study
3 October 2013
Dwain Hamman
Senior Business Development Manager
CEB’s SHL Talent Measurement Solutions
Eric Leger
Country President: Southern Africa
Schneider Electric
1 © 2013 SHL, a part of CEB. All rights reserved.
Defining Succession Planning?
Succession planning systems are intended to help organizations
manage their talent pipeline
“A structured process involving the identification and preparation of a
potential successor to assume a new role,” implying the need for a
reliable, repeatable process (Garman & Glawe, 2004).
Succession planning refers to special efforts to invest in the best,
highest performing, or highest potential talent at any organizational level
or function, but particularly at or near the top.
2
Where Succession Planning fits in
3
Why Succession Planning = sound Risk Management
Effective Succession Management protects against four risks to the
business:
Vacancy Readiness Transition Portfolio
Risk Risk Risk Risk
Risk of critical Risk of Risk of poor Risk of poor
leadership undeveloped assimilation of deployment of
positions being successors executive talent in talent against
vacant the organisation business goals
4A common Succession Planning model
High-Impact Succession Planning Process – Barnett & Davis, 2008
5Typical Approaches Fall Short
Common Approaches Typical Concerns with Approach
Focus on seniors “Is our focus on replacing seniors leaders balanced with planning for other
leaders critical roles vital to business delivery?
Static competency “Do our competency frameworks reflect the changing demands we place
frameworks on our future leaders?”
“Are our managers too subjective in their ratings and not accurately
Manager evaluations
assessing potential?”
Nine box grid “Is a nine box grid the best way to evaluate talent?”
One-size-fits-all
“Do our development programmes take account of individual needs”
development
“Is there a disconnect between our success measures and true outcomes
Success Measures
of our talent initiatives?”
Internal benchmarking “We do not know how our talent compares to our key competitors.”
6The Nine-Box Grid
Performance
Issues
Competency Potential
Potential
Limitations
Performance
7Typical Approaches Fall Short
Common Approaches Typical Concerns with Approach
Focus on seniors “Is our focus on replacing seniors leaders balanced with planning for other
leaders critical roles vital to business delivery?
Static competency “Do our competency frameworks reflect the changing demands we place
frameworks on our future leaders?”
“Are our managers too subjective in their ratings and not accurately
Manager evaluations
assessing potential?”
Nine box grid “Is a nine box grid the best way to evaluate talent?”
One-size-fits-all
“Do our development programmes take account of individual needs”
development
“Is there a disconnect between our success measures and true outcomes
Success Measures
of our talent initiatives?”
Internal benchmarking “We do not know how our talent compares to our key competitors.”
8Succession Planning: A Framework For Success
Quantify the impact of Define the criteria for
Succession Planning current and future
programmes through 5 1 leadership success.
tracking improvement over Evaluate Define
time and applying CEB’s what success Map to state of the art
and quantify
SHL Business Outcomes your success looks like perspective on
methodology. competencies, using CEB’s
SHL UCF, proven to predict
job performance.
Act on insight-based Succession
recommendations Planning
to drive succession 4 Framework
and talent process Improve
2
improvements. your talent Measure
accurately Identify strengths, gaps and
and processes themes at an individual and
and quickly
organisational level
Compare your talent Get a complete view of
internally, and against 3
success – balance
your industry and Benchmark
performance with potential.
your talent
geographical
internally and
benchmarks using externally
CEB’s SHL Talent
Analytics™
Use this framework to improve your talent management strategy and increase
return on your talent investments.
9Succession Planning: A Framework For Success
Define Measure Benchmark Improve Evaluate
Required Assessment Valuable Talent Drive Quantify your
Competencies Solution Insight Performance Success
UCF Online Insights based Group feedback Measure
Competencies Assessment around UCF and self-guided Business
competencies development Satisfaction
LOW TOUCH
Your Competency Consultant led Insights based Individual feedback Measure
Model Assessment around your and development Business
competencies planning Outcomes
HIGH TOUCH
10The Schneider Electric Case Study
11 © 2013 SHL, a part of CEB. All rights reserved.Schneider Electric at a glance
The global specialist in energy management
FY 2012 Sales
Large company Diversified end markets (billion €)
Utilities & Infrastructure 25%
Industrial & machines 22%
Data centres 15%
billion € of sales in 2012
Non-residential buildings 29%
Residential 9%
of sales in new economies FY 2012 sales
Balanced Geographies Year-end 2012 employees
Western
North Europe
employees in 100+ countries America 30%
25% 44 200
Asia
28 300 Pacific
Rest of 27%
World 42 600
18%
of sales devoted to R&D 22 000
12Africa Snapshot
Challenges
Assets 1st zone of potential armed
14% of world population
conflicts
2.5% of world GDP Current GDP USb$
40% under 20yrs old Among op 50 most corrupted
+3.5% average yearly increase of Countries, 25 are African
Middle Class population
GDP is growing 3.5% per year 36% live with less than 1US$/day
FDI up by 15% in sub-Saharan Highest number of political
Africa in 2012
50% of world gold reserves turmoil events in the world
10% of world oil reserves
200+ Schneider Electric Today
100-200
50-100
Competition 20-50
10-20 2495 employees (1.8% of group
sales 950M€ (3.2% of group sales) , 5-10
4500 employees in 15 countries 1-5 workforce force)
-1
based in 14 countries
sales 1700M€, in 10 countries 5 Assembly Units
sales 165M€,in 16 countries
Sources : IMF, World Bank, Financial Times 2012 report, Ernst & Young 2012 report,Transparency international
13Enabler: Talent Plan for Growth
Systematically build Individual Development Plan for all Leaders & Potentials
1 Specific, time-framed and mixing Experience, Exposure and Education (3E’s)
Assure robust succession plans for Key Position Holders
2 Identify key positions which lack a sufficient number of “ready & available” successors
Create action plans where needed
Build critical Talents for growth avenues
3 Identify key profiles required
Foster mobility across businesses and geographies
4 Identify people in mobility
Identify positions to be filled through mobility
Follow-up on our potentials & experts
5 Review throughout the business plan to define and build talent capability
14Schneider Electric and Leadership Development
Schneider Electric’s (Africa Zone) requirement:
• Schneider Electric needed to assess their senior operational leadership to
understand developmental requirements and the strength of their Leadership
pipeline for succession planning.
• Their focus was particularly on the two levels directly beneath Country
presidents comprising of approximately 250 individuals spread over 6
operational regions within the Africa Zone.
• Schneider Electric particularly wanted to focus on the behavioural competence
of this leadership group as opposed to their technical abilities
• Being a competitor in a global dynamic market, evaluating their leader’s
managerial judgement when compared against an international benchmark or
norm was a particular focus
15Schneider Electric and Leadership Development
What Schneider Electric understood from the beginning:
• Leaders at these senior and critical levels had to be measured against
leadership competencies not just for now but also for the future
• Assuming which of the approximately 250 individuals who filled these two senior
leadership levels were HiPo’s, was a risky way to proceed.
• Performance of these leaders in their current roles was no guarantee of success
in the next role
• A nine box matrix was ideal, but to establish an individual’s competency
potential subjectively or based on a manager’s opinion would not provide an
accurate measurement of leadership potential
• Merely ranking internal leaders also provided no context of comparison against
an international benchmark
16Schneider Electric and CEB’s SHL Talent Measurement
Solutions
After consulting CEB’s SHL Talent Measurement Solutions,
Schneider Electric implemented the following solution:
• Schneider Electric would begin by defining the leadership competencies and
behaviours they expected of their leaders using a leadership competency
framework. - DEFINE
• CEB’s SHL Talent Measurement Solutions would map these behaviours to the
SHL Universal Competency Framework.
• Schneider Electric leaders within the Africa Zone would complete online OPQ and
Management Scenario assessments using an international norm group
benchmark. - MEASURE
• The project would begin with a consultant from CEB’s SHL Talent Measurement
Solutions briefing all participants of the purpose of the
assessments and the developmental benefits for the
leaders to ensure optimal engagement from assessment
participants.
17Schneider Electric and CEB’s SHL Talent Measurement
Solutions
After consulting CEB’s SHL Talent Measurement Solutions,
Schneider Electric implemented the following solution:
• Upon collecting the assessment data, CEB’s Talent Measurement Solutions
began by analysing group level trends including key strengths and developmental
areas per level and per region - BENCHMARK
• This gave Schneider Electric a clear picture of their bench strength while also informing
selection and development strategies for this critical leadership pool.
• A process of conducting individual one-on-one sessions was conducted by CEB’s
SHL Talent Measurement Solutions, where the assessment participants were
taken through their results and assisted to draft developmental action plans. -
IMPROVE
• Presentations were to be given to both senior HR leaders
as well as Operational Presidents and this assisted in
aligning Talent and Operational strategies.
18Leadership Mapping – Country A
7.0
6.5
6.0
5.5 5.4
5.3 5.3
5.2 5.2 5.2
Mean Scores
5.2
5.1
5.0
5.0
4.5
4.0
3.5
3.0
Set Vision & Take Risks & Influence & Achieve Focus on Foster Empower Adapt & Develop
Strategy Innovate Convince Results Customer Cooperation Learn Talents &
Diversity
Factors
19Leadership Mapping Distribution – Country B
Develop Talents & Diversity
Adapt & Learn
Empower
Foster Cooperation Well Below Moderate
Below Moderate
Focus on Customer
Moderate
Above Moderate
Achieve Results
Well Above Moderate
Influence & Convince
Take Risks & Innovate
Set Vision & Strategy
0% 20% 40% 60% 80% 100%
20Individual Talent Profile
Person Talent Requirements Summary
Current Performance
Last review: 31 March 2013 by M. Manager
Person Job Match Potential
OPQ and Ability Assessment date: 31 July 2013
Experience and Qualification
Updated: 23 April 2012
Employment Equity Requirements
Next Action Maintain in role, develop for next role
Performance / Potential Matrix
Understand
Maintain in role, Increase
Competency Potential
Significant circumstances,
develop for next challenge or
Potential improvement
role promote
plan or ensure fit
Growth
Understand
circumstances,
X
Maintain in role Maintain in role,
and provide new develop for
Potential manage
assignments lateral role
performance
Support in role
Plateaued or Redeploy Support in role with special
Stretched recognition
Below Target On Target Over Target
Performance
21The Nine-Box Grid
Performance
Issues
Competency Potential
Potential
Limitations
Performance
22Development Action Planner
23Development Action Planner
24Development Action Planner
25Schneider Electric’s key take away from CEB’s Talent
Measurement Succession Planning Solution
Incoming leadership:
− Succession within 6 months
− Cascade down the organization as a mindset on leadership legacy
Facts vs intuition / emotions
− Disciplined approach from multiple angles (self awareness / actual status
against benchmark, etc.)
− Understand our position to set future options
− Perception against reality: self awareness gaps
Jump start understanding and unbiased reflection
− Scientific view of leadership readiness
26Thank you
-
Questions?
27 © 2013 SHL, a part of CEB. All rights reserved.Open Workshop
Do you have Succession Planning programmes?
How have they worked?
How can you use succession planning as not just a talent
management tool but also a competitive market strategy?
What would you take away from the presentation?
What was your key learning from the discussion around
succession planning?
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