Implementation of the Leadership Pipeline and Career Management

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Implementation of the Leadership Pipeline and
Career Management
People Effectiveness
Presentation by Jenny Greyling Director
Organisational Effectiveness
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Organisational Effectiveness function
Learning and Organisational Development
Resourcing and Organisational Design

• Structure and job design
• Recruitment, selection and promotion
• Partner / Director Admissions
• Employee Exits
• International Assignments

Performance Management and Career Development
Leadership And Change Management
Learning Solutions

• Performance Management
• Career Development
• Coaching and Mentoring
• Development Centres
• Talent management

• Learning philosophy
• Core learning programs for developing self, teams
  and in business.
• Program co-ordination and support

• Conversations for Change
• Conversations with Women
• Global People Survey
• Ethics and Values Hotline

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Session Outline

• Who are we ?
• Employee expectations / EY Needs
• Why the Leadership Pipeline
• Leadership Pipeline in summary
• EY implementation process
• Next steps
• Lessons learnt

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Ernst Young Who are we ?

• One of the Big 4 Accounting Firms
• 1828 Permanent employees
• 1502 Professional staff 82
• Approx 400 Contractors
• Male / Female 50
• Black employees 52
• 108 Partners 32 black ownership, 21 women
• Final Qualifying Exam pass rate 85 (Top
  Accounting Firm)

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Our employee expectations / EY Needs

• Increasing expectations
• Generation Xs
• Talented people
• Retention of exceptional and full performers

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Why the Leadership Pipeline ?
Why the Leadership Pipeline ?

• Challenges facing the industry
• Challenges within the firm
• Provides a single framework
• Simplicity and ease of understanding
• Offers an inclusive approach

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What we already knew ..

• Performance management was ineffective despite
  the significant amount of time spent
• Little effort had been put into career
  development
• We had significant capacity constraints and had
  little or no succession planning.
• Our people were required to operate in demanding
  dual roles of managing people as well as be
  responsible for unique expert skills to clients.
• Learning and development initiatives were ad hoc.

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Leadership Pipeline In Summary
Origin The Leadership pipeline was originally
designed in General Electric as the framework for
their succession management system. Now used by
80 leading companies in the world to anchor all
work on the human side of the enterprise.

• The Power of the Model
• Distribute leadership work more effectively
  ensuring that leaders are doing value adding work
  at the right level
• Raise the standard, define/measure Leadership
  make it absolutely clear what it takes to succeed
  enabling significant improvements in
  Performance
• Enable individuals to succeed self-help,
  self-planning, self-assessment
• Create the architecture for integrated Leadership
  Development Talent Management
• Give senior management transparency so that they
  can see all the way to the bottom ensure
  executive validation direction of all the work
  of a business.

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Companies using the pipeline
Anheuser-Busch Citigroup Royal Bank of
Canada Schneider National Credit Suisse Bank of
America Wells Fargo Deutsche Bank Engelhard
Corporation ING Washington Mutual Marriott
International Johnson Johnson
Microsoft IBM Hewlett-Packard Dell Computer EDS
British American Tobacco NOL / APL Southern
California Edison Johns Manville Clearfield
Energy Stratus Technologies Sprint Goodyear Tyre
Rubber Company
Novartis Toys R Us Motorola Blue Cross Blue
Shield of MA Pepsi Bottling Lucent
Technologies Southern Company BHP
Kvaemer Barloworld Ernst Young Clover De
Beers Gold Fields Sasol Telesure
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Leadership Pipeline

• The leadership pipeline is based on the flow
  growth of leaders through career crossroads or
  passages

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Understanding the Work of Leaders
Understanding the Work of Leaders

• In addition, all the transition points require a
  letting go of things that make you successful at
  one layer and adopting entirely new ones at the
  next layer in order to
• succeed at the new layer
• make those around you successful.

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The Pipeline and Turns
Pipeline Turns
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EY Implementation process

• 40 Interviews across the business (approx 3-4 per
  person on the team)
• Performance standards developed
• Unique EY pipeline was drafted
• Presentation to the Executive
• Workshop held with Senior Leadership
• Performance principles introduced
• Alignment to existing global strategy and
  performance management system

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What we initially found

• Leadership and Management is not a measured
  result and therefore not valued, consequently
  over 75 issues which needed attention were
  identified. Including
• Resource management lack of focus on managing
  the work lack of resources
• Structure and role clarity matrix structure
  results in a lack of role clarity.
• Speed of decision making partnership basis
  consensus slows down decision making
• Empowerment on big issues, not on minor such as
  short term incentives
• Shortterm performance focus exacerbated by the
  reward system little reward for leading
  managing
• Coaching and mentorship of leaders not being done
  sufficiently to address the issues and grow
  leaders

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Recommendations
Recommendations

• If we were to identify and fix all of the issues
  individually (the normal response in most
  companies) it would require significant effort
  and would deliver short term only results at
  best. Tomorrow we would be able to identify a
  further 75.
• The way to fundamentally fix these issues is to
  make Leadership and Management an important hard
  measured result in the performance management
  system
• We need to teach our leaders that they needed to
  build the organisation not just focus revenue
  and financial results !

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The EY Tailored Pipeline
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Current implementation process

• Scorecards for the new financial year based on
  Performance standards developed
• 2 hour Masterclasses Personal Scorecards and
  Development Plans
• Transition Workshop Managing Others
• Career discussions at the half year based on the
  pipeline
• Regular performance discussions and gathering of
  evidence

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Next steps

• Transition Workshop Managing Managers
• Coaching Workshops
• Assessing potential of all staff
• Succession planning for key leadership positions
• Guidance regarding Career Development
  discussions, promotion decisions, link to Global
  Competency framework

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Lessons Learnt

• System has a solid foundation
• Not a new initiative, but a refinement of
  existing processes
• Has some really nice concepts which enhance
  understanding of performance management
• Introduce framework in as many forums as
  possible, prior to full implementation
• Organisation started to pull the concepts into
  existing processes rather than an HR push.
• Can be difficult to implement as a performance
  management tool when you have a globally defined
  rating scale
• Consider the impact of more than one grade on a
  layer.
• Need to reinforce use and give more guidance so
  that it doesnt fizzle out.

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Questions