Succession Planning What Could Be More Crucial To Your Company’s Ongoing Performance? Agenda • 
• 
• 
• 
• 
• 
• 
• 
Introductory Comments Set the Stage for Our Panelists Bud Leeper, Head of HR, GuFmann Energy Amy Higgins, VP, HR, Aquion Energy Carolyn McKinney, VP, HR, Peoples Gas Open Q&A Forum Review What Spells Success Final Comments Learning ObjecRves •  Review/discuss O&G industry succession planning pracRces as shared by our panel of industry pracRRoners. Find out what has worked, what hasn’t and why! •  Examine the required building blocks of a strong succession planning process. •  Discuss best pracRces for implemenRng succession planning processes. What do you want to learn about Succession Planning today? Bud Leeper Director of Human Resources The Guttman Group of Companies
Some quick Succession Planning stats… •  Targeted –  60% of companies –  Hard to fill PosiRons –  Key Talent •  Broad –  40% of companies –  All employees or posiRons above a certain level •  Frequency –  49% meet annually –  27% bi-­‐annually •  Average Number of Successors for Senior ExecuRve PosiRons –  24.2% One Successor –  44.1% Two Successors –  25.4% Three Successors Corporate Leadership Council data Keeping it simple… •  It’s not about filling out documents •  Use documents as guides for open and honest discussions about people and the acRons necessary to ensure your company is ready for current and future challenges •  Find ways to weave into the fabric of your day to day discussions about recruitment, development and strategic planning •  Make it repeatable •  Know your audience Talent Profiles •  Engage employees to complete Talent Profiles –  Work History –  EducaRon/CerRficaRons –  Career Goals •  Short term: 0-­‐24 months •  Long term: 24-­‐48 months –  Foreign Language proficiencies –  RelocaRon preferences and/or restricRons –  Strengths and Development Needs Medium Low Performance High Sample 9 Block Assessment Chart Key Contributor/Trusted Professional High Performer/High Impact Performer High Poten=al/Future Leader Top Talent Highly Valued Contributor May have reached career potenRal Strong contributor Coach, reward and encourage Consistently exceeds expectaRons Promote and Develop Capable Performer/Effec=ve Valued Performer/Core Employee Rising Leader/Growth Employee Solid Contributor Coach to strengthen contribuRon May be able to move another level MoRvate, engage and reward Challenge to maximize ability Valued talent Reward and develop Under Performer On the Learning Curve/Dilemma Too New to Rate/Enigma At Risk Performance Manage or Exit At Risk Not delivering expected results Coach or reassign New to Company OR May be in wrong job or with wrong manager Low Medium Growth Poten=al High ClassificaRons – so many choices Readiness Codes Successor Ready within 1 year N Ready Now Successor Ready within 2 years 1 Ready within 1 year No Successor Ready within 2 years 2 Ready within 2 years 3 Ready more than 2+ years New to PosiRon within 1 year Expected to ReRre or be Vacant within 1 year Promoted within last 12 mos Readiness RaRngs Ready Now (RN) 0-­‐12 months Ready Later: (RL) 12-­‐24 months Ready Future: (RF) 24+ months Promoted within last 2 years New to Company within 2 years Succession Charts Posi=on VP of Natural Resources Posi=on VP of Supply Chain Sam Shale Sarah Logis=cs Successor’s Name Code Successor’s Name Code Susan Energy N Wally Warehouse 3 Michael Hasgas 1 Laura Loadingdock 3 John Frackwater 2 Emergency Successor: Mary Marcellus Emergency Successor: Wally Warehouse High PotenRals and Career Chats Name Title Hi-­‐PotenRal or Career Chat Time in PosiRon AcRons Sophie Masloff Dir. Engineering Hi PotenRal 2 yr, 8 mo AFend ExecuRve Leadership program through Univ. PiF Mike Tomlin Sr. Mgr Research Hi PotenRal 9 months Neil Walker Mgr Supply Chain Hi PotenRal 2 yr, 6 mo Project Management cerRficaRon Jim Krenn Dir. Sales Hi PotenRal 1yr, 2 mo Sally Wiggins Machine Operator Career Chat 13 months Assist with college relaRons at local tech school Chris Kunitz Warehouse Lead Career Chat 9 months Advanced Excel class Fred Rogers Engineer Career Chat 6 months AFend management development program Promoted within last 12 mos Promoted within last 2 years Lead financial planning project; serve on advisory commiFee 12 month Houston-­‐based assignment New to Company within 2 years Gap Analysis and AcRon Planning Organiza=on/People/Skills Gap Ac=on to be Taken Date to be Completed Person(s) Responsible Sales Department – no immediate successor for 2 senior roles Begin external search for possible 11/14 to allow candidates with industry experience. for transi=on Pending re=rement of Sales Director 3/15 of leadership Sidney Crosby and Evgeni Malkin Engineering Department Develop partnership with 2-­‐3 top-­‐=er engineering university programs, internship sponsorship to build bench strength for future engineering growth Ongoing with internships to be in place for Summer 2015 Jamie Dixon Produc=on – Andrew Carnegie Transi=on Andrew to a mentor role for upcoming produc=on supervisors as we develop future produc=on management candidates. March 2015 James Harrison Human Resources technology Recruit HRIS-­‐experienced professional that will assist with new system analysis and implementa=on; hire external consultant to narrow vendor choices and prepara=on of RFPs. June 2015 for Clint Hurdle RFPs September 2015 for new HRIS employee Amy Higgins Vice President, Human Resources Peoples Move to a High Performance Culture HR Energy Summit Carolyn B. Mckinney April 1, 2014 About Peoples’ •  128 year old gas uRlity company •  Formerly Dominion Peoples, purchased by private equity investor in 2010 •  Two acquisiRons; T.W. Phillips & Equitable Gas Company •  Peoples’ had 515 employees in Feb., 2010, now 1296 •  Over ½ of work force union-­‐represented; four Unions •  Succession Planning needs have changed rapidly due to: -­‐ Fewer reRrements than expected -­‐ AcquisiRons expanded the talent pool -­‐ Planned infrastructure and territory mergers -­‐ Increased compeRRon for some job categories •  Succession Planning execuRon thus far; just “scratching the surface”. HIGH PERFORMANCE CULTURE RecruiRng & SelecRon • 
• 
• 
• 
• 
Staffing requirements RecruiRng Interview SelecRon On-­‐boarding Performance Management • 
• 
• 
• 
• 
Revised Tools RaRng DefiniRon Goal Seung Performance Coaching Training Succession Planning CompensaRon Benchmarking APIP approach Merit approach Hot Jobs approach EGC over max approach •  Total CompensaRon Statements • 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
Immediate Long term Depth Chart Talent Review Development Plans Training 2014 IMPROVEMENT FOCUS 2014 is the year of “raising the bar” and increased emphasis on competencies. 18 Succession Planning Philosophy •  Strong links to employee selecRon, compensaRon and performance management programs. •  Hire and promote only the best performers. No seFling!! •  RecogniRon, development and reward of strongest performers is essenRal for retenRon and succession planning. •  The Succession Plan is a “living” document which needs constant vigilance, validaRon and revision. •  Development includes mix of training, self-­‐
educaRon, mentoring and job experiences. •  Link to industry job market; invest in “hot” industry specific job development as opposed to non-­‐industry specific roles. Succession Planning ExecuRon •  Greater uRlizaRon of performance evaluaRons as filter for developmental needs. •  Increased emphasis on “how” vs. “what”, especially leadership competencies. •  Not just “hot jobs”, but also “hot people”. •  Individual development plans for all staff, with parRcularly focus on “high potenRals”. •  For Peoples, focus on and execuRon of performance evaluaRons and developmental plans are greatest challenges. •  Evaluate our tendency to fill from within as opposed to outside hires. •  Periodic execuRve/board review of organizaRonal and talent depth charts. Q & A Lessons Learned -­‐ Takeaways Enjoy the Day!