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The Conference Board
Succession Management Conference
How Organizations Are Using Analytics in
Succession Decisions
October 11-18, 2013

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How organizations are using analytics in
succession decisions
One of the next practice areas that is being developed in
organizations, is the use of analytics to make the best use of data
from a variety of sources and present it in a way that increases the
organization’s ability to make reliable decisions. This session will
highlight examples of how organizations are using analytics in the
succession management process.
Scott Hamilton – President and Chief Executive Officer Executive Next Practices Institute, Managing
Director, NextWORKSTM
Scott Mondore, PhD, Managing Partner, Strategic Management Decisions
Tom Vines, Vice President, Human Resources, Business and Technical Leadership, IBM Corporation
David Underwood, Head Talent Management & Analytics, CSAA Insurance Group

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Differentiating Reporting and Analytics
Talent Analytics is the integration of data and the use of analysis, statistics, and
consulting to create new insights about our organization that help drive a high
performance culture and allow us to better serve our members
Reporting vs. Analytics
Reporting is focused on operational
outcomes and historical information
Analytics supplements historical reporting with high level insights
and future predictions
Reports are pulled to review existing
problems for monitoring purposes
Analytics regularly reviews current problems, analyzes external
contexts, and provides comprehensive assessment of the current
state in a summary format only when key issues need to be
addressed
Reports are generally provided in raw
data format or basic summary tables
Analytics highlights the key indicators to be explored by drill-
down analysis and brings focus to concerns relevant to
management
Statistics are not part of the process Statistics are used regularly to substantiate findings

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Succession Management Challenges
Do you know what makes your best talent, your best?
Do you know what skills, experiences, attributes drive success?
Do you know how prepared your leaders are to respond to future changes?
Do you know who in your high potential population will attrit and why?
Do you know if your new hire/new promotion will be successful?
Do you know what impact leadership/succession diversity has on business results?
Do you know how engagement and culture impact succession?
Do you know the fully-loaded cost/ROI of your succession development efforts?
Do you know who to develop and how fast to prepare for an anticipated vacancy?
Do you know where your key talent gaps are, and how to close them?
Do you know if your ready now successors are?
Do you know the optimal balance between readiness and opportunity?
Do you know if what you are doing is impacting the bottom line?
Predicting the Future

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The Analytics Maturity Curve
PwC Saratoga

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Predictive Analytics

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From Reporting to Predictive Analytics
Reporting Analytics Predictive Analytics
Turnover Cost/Cause/Timing of Turnover Who will attrit and when
Percent High Potential What makes best talent best
• Competencies
• Assessments
• Performance
• Personal Attributes
• Engagement
• Culture
• Etc.
Who should we focus on,
invest our limited resources in

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Predictive Analytics
Predictive Analytics succeed only to the
extent than they address key business
issues, are understandable/consumable,
inform those doing the work, and
drive key behavior changes
leading to measurable
improvement.

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Charting a Path
Start from where you are
Focus on what’s important to the business
Look for actionable patterns in your talent
Keep it simple, less really is more
Make it scalable
Fully integrate all talent data
Build capability, slowly

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Succession Management Metrics - Examples
• Succession Pipeline Depth: Average number succession planning candidates for each role
• Succession Pipeline Utilization: Percent key positions filled by internal succession candidates
• Succession Planning Depth: Percent key roles with succession pool one or more unique candidates
• Succession Turnover: Percent succession candidates who voluntarily left the organization
• Succession Diversity Profile: Percent identified diverse succession candidates (female/minority)
• Succession Slate Uniqueness: Percent unique succession candidates
• Executive Tenure: Average time in role for key incumbents
• Succession Readiness Over Time: Percent change in readiness over time key succession candidates
• Succession Diversification: Percent identified successors outside division/area of responsibility
• Bench Strength: Percent management that has been identified as ready for promotion
• Churn: Hires, promotions and attrition [source, destination, and characteristics – e.g., diverse, high potential]
•High Potential Voluntary Separation Rate: Percent high potential employees who voluntarily left
• Diverse external Hiring Rate: Percent diverse external hires (female/minority)
• High Potential Diversity Profile: Percent identified diverse high potentials (female/ethnicity)
• Diverse Promotion Profile: Percent diverse promotions (female/ethnicity)
• Diverse Separation Rate: Percent females/ethnically diverse employees who voluntarily left
• Internal Fill Rate: Percent open roles filled with internal talent
• High Potential Mobility Rate: Percent high potentials who experienced upward or lateral movement
• High Performer Mobility Rate: Percent high potentials who experienced upward or lateral movement
• Diverse Mobility Rate: Percent diverse talent who experienced upward or lateral movement
• High Potential Development Rate: Percent high potentials who completed 100% targeted development

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© 2013 IBM Corporation
2013 Succession Management Conference
Using Analytics to Drive Succession Plans

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IBM Talent Sparks
•Identify future leaders at the beginning of their professional career
•Customize education to strengthen business and leadership acumen
•Expose participants to current leaders in turn growing their
leadership capabilities
•Provide opportunities that equip participants with highly valued
experience
Business Challenge:
Recruitment and retention of top talent in the IT Industry
in India is fiercely competitive causing adverse impact on
our leadership succession planning models.
Quantitative Data
•Attrition rates
•Demographics of
current leaders
•Pipeline availability
Qualitative Data
•Cultural norms
and environmental
influences
•Quality of current
leadership
development
programs
External Data
•Projected trends in
the IT Industry
•Competitor attrition
rates
•Factors that
influence employees
to stay or leave an
organization
Applying Analytics:
Focus Items for Program Model
Education
Exposure
Experience
Talent Sparks Model
•Early Identification
•Customized Development Plan
•3-E Approach
3E-Approach
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IBM Reconnections Initiative Model
IBM Reconnections Initiative
1. Identify
strong
women
leaders with
high
potential
that left IBM
in the past
10 years.
5. Assimilation
activities in
addition to on
boarding process
2. Perform
research on
candidates
and produce
short list
3. Identify roles
that best
leverage
candidate’s
skills and
capabilities
where they are
needed the most
4. Enlist Senior
Leaders in IBM to
conduct an
outreach effort
Applying Analytics:
Business Challenge
Increase women executive leadership representation
Quantitative Data
•Demographics for
current leaders
•Attrition data on
high potential
women
•IBM Leadership
demand and
supply data
Qualitative Data
•Factors that
influence women
to leave IBM
•Quality of
recruitment and
retention
programs
•Impact of on
boarding efforts
External Data
•Executive
representation by
gender for the IT
industry
•Information on
common factors
that drive women
to leave and
rejoin the
workforce
•Identify high potential women that left IBM within past 10 years.
•Conduct research on candidates and have a role in mind
before making contact.
•Customize roles to leverage candidate’s strengths.
•Develop assimilation activities to ensure a positive transition
back to IBM.
•Continue high touch outreach efforts to minimize retention
issues.
Focus Items for Program Model

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The Corporate Service Corps (CSC) was
launched in 2008 to help provide IBMers with
high quality leadership development while
delivering high quality problem solving for
communities and organizations in emerging
markets.
Impact
•Touched the lives of over 140,000 people by
providing more than $70 million worth of pro
bono consulting services
•By year end, 2,400 IBM employees based in
52 countries will have been dispatched on
more than 187 engagements, undertaking
850 team assignments in 34 countries since
the program’s founding in 2008.
IBM Corporate Service Corps
Applying Analytics
Business Challenge
Increase IBM’s ability successfully collaborate with clients,
peers, and communities on a global scale.
Quantitative Data
•Demographics
data on current and
future IBM leaders.
• Assessment of
IBM’s ability to
collaborate globally
•Cost associated to
short and long term
global assignments
Qualitative Data
•Effective
leadership skills
needed to
successfully
collaborate in a
globally integrated
organization
•Survey participants
to gather feedback
for program
improvements.
External Data
•Understanding of
cultural and
political elements
in emerging
market.
•Analyze programs
and approaches
that foster global
collaboration
•Program should equip IBM with leaders that have first hand
knowledge of how to function in and appreciate cultural differences.
•Build IBM’s reputation as a strong corporate citizen based on the
delivery of sustainable solutions to social issues.
Focus Items for Program Model

Strategic Management Decisions
Business Focused Succession Planning
Scott Mondore, Ph.D.
Strategic Management Decisions

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9-Box Pitfalls
Measures of Potential are extremely subjective
Performance ratings also subjective
Talent decisions made in Talent Review meetings based on this
information are often driven by two things:
§ The biggest title in the room
§ The biggest mouth in the room
Having to ‘calibrate’ a measurement tool before the conversation even
starts tells you everything you need to know about the rigor of that
measurement tool
The 9-box never references driving actual business outcomes

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Traditional data analysis includes:
• Qualitative analysis or gap analysis (strengths/weaknesses)
• Correlation
• Regression
Advantages of SEM:
• Consider multiple independent & dependent measures
concurrently
• Imply causality
• Calculate ROI
• Correct for measurement errors
SEM is commonly used in other industries (econometrics, market
research)
Assess Business Impact:
Analytic Approach – Structural Equation Modeling

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Assess Business Impact:
Linking People Assessments to Business Metrics
Critical Business
Outcomes
Leadership
Competencies
Personality Factors
Experience
The linkage analysis will
demonstrate the level of
impact that each
competency, experience,
skill, etc. has on individual
performance and business
outcomes.
This allows leaders to
focus on the most
important competencies,
skills, experiences and
determine the appropriate
level to invest in
developing each area.
Identifying Critical Competencies/Experiences that Drive Business Outcomes
Employee
Attitudes
Technical
Skills/Abilities

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Examine Strengths and Gaps:
Business-focused Ready Now ScorecardTM
Key Drivers of Business Outcomes
Utilize the Ready Now Scorecard to Assess Overall Talent Pool Health…
• Refer to the scorecard during talent review sessions; incorporate
stakeholder ratings of performance and potential to identify true
Ready Now talent
• Assess performance strengths and gaps across the entire talent pool

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Business-Focused Metrics
Succession/Workforce Planning
§ Uncover how your key talent performs on key business drivers
(competencies, skills, attitudes, personality, experience)
§ Metrics should focus on:
• Talent pool effectiveness based on the key business drivers
• Overall talent bench strength—based on performance on the key
business drivers
• Time-to-fill on key leadership roles
• % of internal hires for leadership roles
• % of key roles with ready now replacements
Build leadership development programs around business drivers

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Next Practices Talent Analytics
Leading Your Organization to Next
Practices Analytics for Growth,
Profitability and Talent Excellence

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Executive Next Practices Institute
.

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Next Practices
Ideas, processes, concepts and solutions that move us beyond the
“status quo”.
Not “how are others doing it best” but rather, “where do we go from
here that represents a true fundamental shift in value”…

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§ An over 200 year old term with much “conventional wisdom” later disproven.
§ Aristotle defined “common sense” (sensus communis) as an actual power of inner sensation not
hampered by external senses.

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Succession Plan
That Works
Audit of Your Talent
Pool
Raising the Bar in
Recruiting and
Hiring
Breakthrough
Experiences for
High-Potential
Managers/Leaders
Ongoing
Development,
Engagement, and
Performance
Management
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Talent
Machine
Getting the Right Leaders in Place Requires a
Comprehensive and Systemic Strategy

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Replacement planning is short-term and sets your organization up for long-term failure
A Succession Plan That Works:
- Is dynamic, based on a pool of qualified candidates
- Is continually adapting to needs and available roles
- Is reviewed constantly and aggressively
- Strengthens the company with every hire or promotion
- Uncovers a company’s strengths and weaknesses
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Succession Planning vs.
Replacement Planning

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Talent = a naturally recurring pattern of thought, feeling, or
behavior that can be productively applied
§ Can be measured with validated assessments
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Auditing Your Talent Pool
§ Assessment taken
individually, audit report is of
the whole group
• Organization or unit evaluated
on talent level, strengths and
limitations, recommendations
for targeted improvements
Talent
Model
Motivation
Influence
WorkstyleRelationship
Thought
Process

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Implants a talent focus in the company
Attract and source for the right fit
Promote and develop people around company needs
Identify and consistently select to standards
Steadily increase the talent pool
Builds a stronger employment brand
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Talent Audit Outcomes

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Identify Hi-Potential Leaders and Managers based on:
§ Talent
§ Metrics
§ Developmental Evidence
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Developing Your Succession Pipeline
CEO
CFO
EVP
EVP
COO
EVP
EVP
________
________
________
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________
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John Smith
Sarah Wood
Max Fitch
§ Three candidates should be in the wings for each role
within the top three levels of the organization

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The Succession Matrix:
Putting the Pieces Together
Predictive Talent Assessment
BusinessMetrics
Customer
Engagement
Experiential
Review
Development
Evidence
Employee
Engagement
Recast or
Reconsider
Develop
and Grow
Good Role Fit-
Support
Star
Performers