Talent Reviews and Succession Planning: 50-75% of firms have both a talent review and succession planning process; however, only half have a formal one. Talent reviews every 6 months can put you well ahead of the competition.
a. Start with the Science: Goal of talent review is to accurately predict future employee success.
i. Smart wins: Smart people will outperform their less smart peers—every time. General intelligence is strongest predictor of future performance.
ii. Personality doesn’t matter as much as we think.
iii. Organizational and personal fit. The extent that employee and corporate goals “fit” will help determine employee success in the future.
b. Eliminate Complexity and Add Value: Keep a performance/potential grid for each employee. Supervisors can use the grid in a meeting with peers to determine group opinion of employee…eliminates high or low graders and allows outside input.
i. P x P Grid: Develop a Performance (low to high)/Potential (low to high) talent grid (see p. 81).
ii. Teach managers how to formulate an accurate grid.
iii. Conduct a calibration meeting. Executive or manager pulls together all supervisors to present the ratings of all employees. Each rating is discussed and ranked into the appropriate box.
iv. The group agrees on two development activities for each person.
v. The evaluated employees are placed in an overall grid for final calibration against all reports. Provides a useful comparison across departments.
vi. Record and track development: HR leader should coordinate these meetings. Perhaps hold these twice a year.
vii. Use a basic succession planning model…ready now, ready in 1-2 years, etc. (see p. 90).
c. Create Transparency and Accountability:
i. The authors advocate maximum transparency to produce high trust.
ii. Tell everyone about their ratings.
iii. Talk to high-potentials about how much you’re willing to invest in them, but balance your comments to let them know their responsibility as well.
iv. Follow up on talent development at team supervisors meetings coordinated by HR. This keeps all supervisors accountable for talent follow up.