vlerick hrday 2013: succession planning. - prof. d. buyens

SUCCESSION PLANNING: PLANNING FOR SUCCESS OR SMART TALENT MANAGEMENT?

PROF. DR. DIRK BUYENS

© Vlerick Business School

CONTEXT: SUCCESSION PLANNING = DEAD

2

Companies offer jobs, not careers anymore.

Managers have a shorter “expiration date” then they used to have.

In “Raplex” environments ‘LT people planning’ makes no sense.

Hipo management programmes create lots of frustration.

Europe is in it’s “fall season” of it’s lifecycle.

Prof dr Dirk Buyens - Vlerick HR Day 2013


CONTEXT: SUCCESSION PLANNING = ALIVE

Managing people = all about managing expectations.

Higher mobility leads to more “successors” needed.

In “Raplex” environments you need to convince people about “Zig-Zag Careers”.

No tool or practise has been more popular over the past 3 years than the 9-box.

The biggest HR challenge for the next 10 years to come = to “succeed” Babyboomers.

Lack of successful succession is the main reason why (family owned) SME’s don’t survive the 2nd or 3rd generation.

3 Prof dr Dirk Buyens - Vlerick HR Day 2013


CONTEXT: SUCCESSION PLANNING = THE HEART OF THE MATTER

Why:

1. HR 2020 is not about people but it is about “Talent Supply” and “Talent Supply Chain Management”.

2. Succession planning ≠ not planning people for jobs, but it is about fostering Talent in a B6 way.

3. Succession planning = Educating consistent successful BEHAVIOUR.



INVEST IN TALENT

Strategy Definition

B

5

Buy Acquire new talent by recruiting individuals from outside or from other departments or divisions within the organization.

Build Develop talent through training, education, formal job training, job rotation, special assignments, and action learning.

Borrow Partner with consultants, vendors, clients, and suppliers outside the organization in arrangements that transfer skill and knowledge.

Boost Move the right people through the organization and into higher positions.

Bind Retain employees with high growth potential and valued talent.

Bounce Remove low-performing or under-performing individuals.

B

B

B

B

B

Prof dr Dirk Buyens - Vlerick HR Day 2013 5


HR MANAGING AS ART, CRAFT, SCIENCE


HR Management as

a Practice

ART Vision

creative insights

CRAFT Experience

practical learning

SCIENCE Analysis

systematic evidence

7


STYLES OF HR MANAGING IN TERMS OF ART, CRAFT, SCIENCE

ART (vision)

CRAFT (experience)

SCIENCE (analysis) Dispirited Managing

Narcissist

Insightful

Cerebral

Calculating

Engaging Tedious

Prof dr Dirk Buyens - Vlerick HR Day 2013 8


RESULT: 5 ENTRENCHED MYTHS WERE UNDERMINED

1. Successful leaders in a turbulent world are bold, risk

seeking visionaries

2. Innovation distinguishes 10X companies in a fast-

moving, uncertain and chaotic world

3. A threat-filled world favours the speedy: you are

either the quick or the dead

4. Radical change of the outside requires radical change

on the inside

5. Great enterprises with 10X success have a lot more

‘good luck’

9

Collins & Hanson, Great by Choice



FINAL SET OF 10X CASES

10X Case Dynastic Era of

Study Value of $10,000

Invested

Performance Relative to

Market

Performance Relative to Industry

1. Amgen 1980-202 $4.5 million 24.0X

the market 77.2X

its industry

2. Biomet 1977-2002 $3.4 million 18.1X

the market 11.2X

its industry

3. Intel 1968-2002 $3.9 million 20.7X

the market 46.3X

its industry

4. Microsoft 1975-2002 $10.6 million 56.0X

the market 118.8X

its industry

5. Progressive Insurance

1965-2002 $2.7 million

14.6X

the market 11.3X

its industry

6. Southwest Airlines

1967-2002 $12.0 million 63.4X

the market 550.4X

its industry

7. Stryker 1977-2002 $5.3 million 28.0X

the market 10.9X

its industry



SOUTH POLE EXPEDITION (AMUNDSEN) VS TERRA NOVA EXPEDITION (SCOTT)

11

Extract from the Washington Herald, March 8, 1912



OBJECTIVES

SOUTH POLE EXPEDITION

1 goal only: to be the first to reach the South Pole (e.g. took only 10 photographs and once they’d reached the Pole)

all energy and focus

went to that goal

TERRA NOVA EXPEDITION

Reaching the South Pole

And do some scientific exploration (cf. 2000 pictures)

2 goals made expedition

more complicated



TRANSPORT

Dogs, dogs and more dogs (52 dogs)

Sledges pulled by dogs were shaven off to weigh less

When dog died meat was used for men and the other dogs only 11 dogs returned to base camp

No need to unlash-relash sledges because of use of canisters

Dogs could eat penguins and seals

Skiing (all Norwegian experienced skiers)

Ponies, motor sledges and men

Motor sledges broke down and no engineer to fix them

Ponies not suited for walking in the deep snow

Sledges that were pulled by men, were overloaded and had to be unlashed and relashed every time the made camp

Men carried food for ponies with them

Walking

14

SOUTH POLE EXPEDITION TERRA NOVA EXPEDITION



BASE CAMP, ROUTE MARKING AND DEPOT LAYING

Base camp was 96 km closer to South Pole

New route

Route marked by cairns, flags and empty food canisters

Depot laid out every degree of latitude and marked with a line of bamboo flags

Base camp better located for geological exploration

Route already explored by previous expedition

Route marked by walls made at lunch and evening stops to protect the ponies

Less depots laid out: for every 5 depots laid out by Amundsen, Scott had laid out 2

16



© Vlerick Business School 17

Amundsen's route had never before been taken, but it put his starting point 60

miles closer to the Pole than Scott's.



NAVIGATION

Amundsen used sextant, very light and simple to use

Prepared navigation sheets that simplified calculations

4 out of 5 team members were qualified navigators

Scott used theodolite, rather heavy and requires more arithmetic

No prepared navigation sheets

Only 1 navigator

18




Scott’s men



CONCLUSION

Amundsen was prepared for the

worst, whereas Scott only had a

thin margin for error



LEVEL 5 AMBITION

1. Fanatic discipline

2. Productive paranoia

3. Empirical creativity

4. Why would anyone work with these CEOs

5. Answer: they are ambitious for a purpose

beyond themselves, achieving something

great that is ultimately not about them



Victory awaits him who has

everything in order – luck people

call it. Defeat is certain for him who

has neglected to take the

necessary precautions in time; this

is called bad luck.

Roald Amundsen, The South Pole



DIFFERENT BEHAVIOURS, NOT DIFFERENT CIRCUMSTANCES

They’re not more creative

They’re not more visionary

They’re not more charismatic

They’re not more ambitious

They’re not more blessed with luck

They’re not more risk seeking

They’re not more heroic

They’re not more prone to making big, bold moves



10X LEADERSHIP

24

Fanatic DISCIPLINE

Productive PARANOIA

Empirical CREATIVITY

Level 5 AMBITION



10XERS DISPLAY THREE CORE BEHAVIOURS

1. Fanatic Discipline: 10Xers display extreme

consistency of action – consistency with

values, goals, performance standards, and

methods. They are utterly relentless,

monomaniacal, unbending in their

focus on their quests.

25

Fanatic DISCIPLINE

Productive PARANOIA


Level 5 AMBITION



Fanatic DISCIPLINE

Productive PARANOIA


Level 5 AMBITION


2. Empirical creativity: When faced with uncertainty,

10Xers do not look primarily to other people,

conventional wisdom, authority figures, or peers for

direction; they look primarily to empirical evidence.

They rely upon direct observation, practical

experimentation, and direct engagement

with tangible evidence. They make

their bold creative moves from a

sound empirical base.



Fanatic DISCIPLINE

Productive PARANOIA


Level 5 AMBITION


3. Productive paranoia: 10Xers maintain

hypervigilance, staying highly attuned to threats and

changes in their environment, even when – especially

when – all’s going well. They assume conditions will

turn against them, at perhaps the worst possible

moment. They channel their fear and

worry into action, preparing,

developing contingency plans,

building buffers, and maintaining

large margins of safety.



Freely chosen, discipline is absolute

freedom

Ron Serino



WHAT DO THESE BRANDS EDUCATE CONSISTENTLY?


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...OR THESE?


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...OR THESE?


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...OR THESE?


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...OR THESE?


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FIRE BULLETS, THEN CANNONBALLS

A “fire bullets, then cannonballs” approach better explains the success of 10x companies than big-leap innovations and predictive genius.

A bullet is a low-cost, low-risk, and low-distraction test or experiment.

Our 10X cases fired a significant number of bullets that never hit anything. They didn’t know ahead of time which bullets would hit or be successful.

There are two types of cannonballs, calibrated and uncalibrated. A calibrated cannonball has confirmation based on actual experience – empirical validation – that a big bet will likely prove successful. Launching an uncalibrated cannonball means placing a big bet without empirical validation.

Uncalibrated cannonballs can lead to calamity.



CONCLUSION: LESSON 1

35

Educate the 3

core

behaviours:

1. Fanatic Discipline

2. Empirical Creativity

3. Productive Paranoia




36

There is only one way to prepare successfully for the 20 Mile March.




37

Fire bullets…

…then

cannonballs




38

Succession

planning is all

about

educating

consistent

successful

behaviour




39

Strive for

level 5

ambitions




40

As an HR

professional; are

you an Amundsen

or a Scott?

Be an Amundsen!


THANK YOU!

vlerick hrday 2013: succession planning. - prof. d. buyens

Education