Talent Management and Succession Planning Best Practices
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As hospitals and health systems continue managing the transition to delivering greater value to patients and populations in the midst of reimbursement degradation, legal and regulatory changes, industry consolidation, and massive workforce demographic shifts, the role and impact of talent management and succession planning practices have come under greater scrutiny. In order to proactively prepare for the unprecedented departure of executive talent while also developing future leaders to address the many implications of the Affordable Care Act, including much greater pressure to demonstrate the value of healthcare services via clinical quality metrics, many hospital organizations have invested in the development of talent management and succession planning capabilities. This webinar presents findings and practical applications from the semi-annual Healthcare Talent Management Survey, which provides HR executives and senior management teams with direct evidence of the impact of talent management and succession planning capabilities on hospitals’ financial, workforce, and value-based purchasing performance metrics. Webinar participants will learn a practical framework of best practices across a series of capabilities, including talent assessment, role-based leadership development, and onboarding practices. The webinar will conclude with presentation of several case studies highlighting the execution of talent management and succession planning best capabilities at prominent health systems.
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Talent Management and Succession Planning Best Practices
- 1. Talent Management and Succession Planning Best Practices August 4th, 2015 Health Forum Webinar Sponsored by Cornerstone OnDemand Kevin S. Groves, Ph.D. Associate Professor, Pepperdine University President, Groves Consulting Group Assessing Impact on Financial, Workforce, and Value-Based Purchasing Metrics
- 2. Brief Introduction Associate Professor of Management Graziadio School of Business and Management, Pepperdine University – MBA courses in organization design/development, and leadership – Denney Chair Professor (2013-2015) President Groves Consulting Group – Succession planning and talent management solutions – Leadership assessment, development, and retention systems
- 3. Webinar Preview • Brief background of research program • Healthcare Talent Management Best Practices model • Best Practices utilization and ROI across performance metrics • Case studies of exemplary health systems • Recommendations for healthcare organizations
- 4. What’s Driving the Need for Talent Management Investment? • Demographic, marketplace, legislative, & financial challenges – ‘5/75 crisis’ – Comparatively short hospital CEO median tenure (4 years) – Lack of sustained investment in talent management – Rapidly increasing costs and pressure on HR to demonstrate value – Healthcare reform, reimbursement degradation, and ACOs – Increasing emphasis on value- versus volume-based performance metrics
- 5. Healthcare Talent Management Research Program Phase I: Model Development • Interviews with hospital/health system CEOs • Qualitative studies of health systems with exemplary TM outcomes • Development of Healthcare Talent Management Best Practices model Phase II: Model Validation • Validation of Best Practices model • National studies of clinical, financial, and workforce performance outcomes Phase III: Model Application • Application of Best Practices model via case studies & client engagements
- 6. Phase I: Healthcare Talent Management Best Practices Model* 1. Top Management Team Support 2. Talent Assessment & Succession Planning Practices 3. Performance Appraisal Practices 4. Incentive Pay Practices 5. Leadership Development Culture 6. Role-based Leadership Development 7. Selection & Onboarding Practices 8. Talent Management ROI *American Society for Health Care Human Resources Administration (Groves, 2013); Healthcare Talent Management Survey 2012 (Groves, 2013); Health Care Management Review (Groves, 2011); Journal of Management Development (Groves, 2007).
- 7. Phase II: Validating the Best Practices Model Healthcare Talent Management Survey 2014* Survey Goals: 1. Assess utilization of Best Practices 2. Assess impact of Best Practices on multiple performance metrics: Value-based Purchasing Workforce Performance Leadership Development Leadership Diversity *Groves, K. (2015). Impact of Talent Management Practices on Financial, Workforce, and Value-Based Purchasing Metrics.
- 8. Sample Characteristics 38.3% 31.6% 18.0% 9.8% Community Hospital Health System Academic Medical Center Specialty Hospital VARIABLE MEAN FTEs 16,741 Net Patient Revenue $2.58B Number of Medical Centers 10.35 Number of Licensed Beds 2,410 29% 20% 7% 5% 16% 5% 4% 2% 12% CHRO/SVP of HR VP of HR VP of Talent Mgmt/Acquisition Director of HR Chief Administrative Officer Chief Operations Officer (COO) Chief Executive Officer (CEO) Chief Financial Officer (CFO) Other Positions
- 9. Utilization of Best Practices Overall 17% 4% 15% 20% 21% 12% 6% 0% 4% 7% 11% 18% 19% 19% 13% 19% 6% 12% 39% 30% 47% 37% 30% 31% 39% 35% 47% 24% 30% 11% 13% 13% 25% 32% 45% 29% 13% 24% 9% 11% 17% 19% 4% 14% 8% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Talent Mgmt. ROI Selection & Onboarding Practices Role-Based Development Leadership Development Culture Incentive Pay Practices Talent Assessment Practices Performance Appraisal Practices TMT Support Best Practices Overall Always Usually Sometimes Rarely Not at All Highest Scores Lowest Scores
- 10. PERFORMANCE METRIC High Success Factors Utilization Low Success Factors Utilization Primary Drivers Total VBP Performance Score 42.46 34.54 Talent Assessment Selection & Onboarding Efficiency Domain (Medicare Spending Per Episode) $17,493 $20,706 Talent Assessment Performance Appraisal Experience of Care Domain (HCAHPS) 71% 64% Talent Assessment Performance Appraisal Nursing Turnover 8.74% 13.61% Selection & Onboarding Performance Appraisal Executive Turnover 3.33% 19.95% Talent Assessment Performance Appraisal Employee Productivity $173,484/FTE $110,748/FTE Incentive Pay Performance Appraisal ROI of Best Practices: Value-Based Purchasing & Workforce Performance Metrics
- 11. Best Practices & Annual Nursing Turnover 13.6% 15.6% 14.6% 13.7% 13.6% 12.7% 12.3% 13.2% 11.6% 8.7% 12.2% 10.6% 12.3% 12.2% 9.4% 12.5% 8.4% 11.2% 0% 3% 6% 9% 12% 15% 18% Overall TMT Support Performance Appraisal Processes Talent Assessment Practices Incentive Pay Practices Leadership Development Culture Role-Based Development Selection & Onboarding Practices Talent Mgmt. ROI Low High 36% TO Reduction $5.13M/year
- 12. Best Practices & Value-Based Purchasing Metrics 9.60 9.15 10.74 3.47 34.54 12.34 13.73 14.56 6.61 42.46 0 5 10 15 20 25 30 35 40 45 Process of Care Domain Experience of Care Domain Outcome Domain Efficiency Domain Total Performance Score Low High 50.1% Improvement 90.5% Improvement
- 13. Experience of Care Domain: HCAHPS Scores 64% 65% 62% 63% 62% 66% 65% 64% 65% 71% 68% 69% 70% 69% 69% 69% 70% 70% 56% 58% 60% 62% 64% 66% 68% 70% 72% Overall TMT Support Performance Appraisal Processes Talent Assessment Practices Incentive Pay Practices Leadership Development Culture Role-Based Development Selection & Onboarding Practices Talent Mgmt. ROI Low High 10.9% Improvement
- 14. Efficiency Domain: Mean Spending Per Beneficiary Episode $20,706 $20,537 $20,917 $20,781 $21,093 $20,865 $19,968 $20,359 $19,906 $17,493 $17,638 $17,944 $17,618 $18,288 $17,457 $18,202 $18,053 $18,119 $0 $5,000 $10,000 $15,000 $20,000 $25,000 Overall TMT Support Performance Appraisal Processes Talent Assessment Practices Incentive Pay Practices Leadership Development Culture Role-Based Development Selection & Onboarding Practices Talent Mgmt. ROI Low High 18.4% Difference $3,213/Episode
- 15. Talent Assessment & Succession Planning Practices System-view of Leadership Talent Strategic Talent Pools Rigorous Talent Review Sessions Formal Assessment Tools Succession Plans
- 16. Talent Assessment & Succession Planning Practices 23% 6% 6% 11% 13% 23% 12% 7% 13% 30% 8% 19% 21% 22% 21% 23% 42% 47% 36% 21% 23% 21% 19% 18% 15% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Formal assessments (e.g., nine-box tools) are utilized to plot employees in key positions according to job performance and leadership… Talent review sessions consist of cooperative and collaborative decision-making Talent review sessions are characterized by authentic, non-politicized dialogue High potential employees are identified in the context of our organization's strategic priorities High potential employees are formally assessed at front-line levels of management (e.g., supervisor, shift leader, etc.). Always Usually Sometimes Rarely Not at All Lowest (46%) Lowest (43%)
- 17. Phase III: Best Practice Illustrations at Exemplary Organizations Sutter Health – Talent Assessment and Succession Management System Hospital Corporation of America – Executive Development Program (EDP) Cleveland Clinic Health System – Executive Onboarding Program (EOP)
- 18. Sutter Health at a Glance Sutter Health – Community-based, not-for-profit , non-denominational system in Northern California – Integrated delivery network comprised of affiliated hospitals, physician organizations, foundations, and home health services 2014 Financials & Size – 50,000 employees and 5,000 physicians – $10.2 billion revenue ($402 million income) – 24 hospitals; 28 ambulatory surgery centers
- 19. Sutter Health’s Talent Assessment & Succession Management Practices • Succession planning objectives – Enhance leadership capabilities via diverse talent pool – Cultivate strong succession plans for critical positions – Create a central, searchable repository of leadership talent – Develop system-wide approach to talent management • Talent review processes – Standardized, annual, data-driven process across affiliates and management levels (affiliate, region, and system) – Leadership talent reviewed sequentially; data rolled-up to successive levels (March-July)
- 20. Talent Assessment & Succession Management: Best Practices at Sutter Health Clear Hi-Po Definition Strong Assessment- Development Link System-wide View of Talent Disciplined Use of Performance Mgmt. Platform Performance vs. Potential Ratings Staggered Post-talent Review Actions
- 21. Succession Planning Performance Metrics What is the evidence that these talent assessment practices are effective? 1. Leadership Development Metrics 68% internal/external executive placement ratio (2011-2014) 79% (2014); Six of seven affiliate CEO positions filled internally (2014) 10% of mgmt. population identified as high potential/high performing leaders (n = 536) 22% annual growth rate (2007-2014) of ready now candidates for leadership roles (n = 419) 2. Leadership Diversity Metrics 62% female successors for all executive positions 52% female successors for critical roles (CEO, CAO, COO CNE) 3. Workforce Performance Metrics 86% retention rate for Leadership Academy alumni (175 active alumni) 14% of Leadership Academy graduates are now CEOs 57% promotions/transfers to higher level roles Over $5 million in recruitment costs savings since inception (2004-2014)
- 22. Sutter Health’s CEO Succession Our nationally recognized talent review and succession planning program allows us to cultivate leaders from within, and the Sutter Health Board and I identified Sarah early on to one day assume my role. I encourage other organizations to invest in their teams and to take time to mentor and plan for succession, so they experience smooth transitions in leadership. – Pat Fry (May 19, 2015) Pat Fry, CEO Sarah Krevans, COO
- 23. PERFORMANCE METRIC High Success Factors Utilization Low Success Factors Utilization Primary Drivers Leadership Benchstrength 52% 7% Selection & Onboarding Talent Assessment Internal/External Executive Placement Rate 67.7% 21% Selection & Onboarding Role-based Development Annual Executive Search Costs/Medical Center $13,696 $129,333 Selection & Onboarding Performance Appraisal C-Suite Gender Diversity 52% 24% Selection & Onboarding Performance Appraisal C-Suite Ethnic Diversity 43% 12% TMT Support Performance Appraisal ROI of Best Practices: Leadership Development & Leadership Diversity Metrics
- 24. Selection & Onboarding Practices High Engagement, Productivity, & Retention Leadership Competency Behavioral Interviews Formal Onboarding for Internal & External Leaders New Leader Assimilation Stakeholder Analysis
- 25. Selection & Onboarding Practices 20% 13% 2% 2% 13% 11% 7% 2% 20% 24% 18% 15% 32% 28% 31% 33% 15% 24% 42% 48% 0% 10% 20% 30% 40% 50% 60% Managers hired from outside our organization complete a formal on-boarding program (a systematic learning and socialization process lasting at least three months). Employees promoted into managerial positions or roles that are new to our organization complete a formal onboarding program. The distinctiveness of our organization is made clear to external candidates for key positions. The selection process for managerial positions involves behaviorally-based interviews linked to leadership competencies. Always Usually Sometimes Rarely Not at All Highest (81%) Lowest (33%)
- 26. Cleveland Clinic at a Glance Cleveland Clinic Health System – Internationally renowned academic health system – Numerous distinctions and awards • America’s Top Hospital for cardiology and radiology; top three rankings for orthopedics, gastroenterology and GI surgery, etc. (US News & World Report 2015) – Physician-led, multi-specialty group practice integrating clinical and hospital healthcare services with research and education – 70 accredited residence training programs; $168M grant/contract revenue 2014 Financials & Size – 43,000 employees – $6.2 billion revenue – 12 hospitals; 16 family health and ambulatory surgery centers
- 27. Cleveland Clinic’s Onboarding Phases • Includes all activities from acceptance of offer to Day 1 (welcome letter, forms, benefits package, company info, etc.) Preboarding • Program designed to provide all new caregivers with standard information about the organization (strategy, history, operations, culture, etc.). Orientations • Long-term process to transition new caregivers into the organization. • Includes welcome and integration (introductions, lunch, building tour, etc.), detailed work plan (job responsibilities, initial assignments, etc.), and peer sponsor. Onboarding Timeline Pre-Day 1 1st Week 1st 90 Days Responsibility Human Resources Hiring Manager Human Resources
- 28. Cleveland Clinic’s Onboarding Framework
- 29. Cleveland Clinic’s Executive Onboarding Practices Executive Book of Knowledge Stakeholder Analysis & Interviews 90-Day Transition Plan New Leader Assimilation • Facilitated Thumb drive of CC leadership data Strategic plan, org charts, budgeting processes, strategic initiatives Administrative systems Hiring executive analysis of critical stakeholders Scheduling one-on-one interviews Learning priorities Work activities and deliverables Focus on ‘early wins’ Facilitated team-building sessions Strong communication & leader/staff relationships
- 30. Executive Onboarding: Best Practices at Cleveland Clinic Strong Hiring Executive-OLPD Alliance Comprehensive & Personalized Integration Activities Hiring Executive Prioritization of Onboarding Socialization to Culture & Leadership Role Rapid Assimilation to New Team Opportunities for Early Wins Cross-level & Cross- Unit Relationship Building
- 31. Executive Onboarding Performance Metrics What is the evidence that Cleveland Clinic’s executive onboarding practices are highly effective? 1. Executive Job Performance 2. Executive Engagement 3. Executive Productivity
- 32. Executive Job Performance 36.1% 60.8% 3.1% 31.8% 59.1% 9.1% 0% 10% 20% 30% 40% 50% 60% 70% Exceptional Performance Fully Meets Expectations Meets Most Expectations EOP Participants (n = 194) EOP Non-Participants (n = 22)
- 33. Executive Engagement 4.63 4.63 3.81 4.38 4.19 4.25 4.31 4.71 4.59 4.13 4.48 4.40 4.31 4.44 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 I would recommend this organization to family and friends who need care. I am proud to tell people I work for this organization. I would stay with this organization if offered a similar job elsewhere. I would like to be working at this organization three years from now. I would recommend this organization as a good place to work. Overall, I am a satisfied caregiver. Employee Engagement Overall EOP Participants (n = 124) EOP Non-Participants (n = 16)
- 34. Executive Leadership Support 4.25 4.38 4.38 4.50 4.19 4.25 4.32 4.46 4.67 4.54 4.69 4.36 4.39 4.52 3.90 4.00 4.10 4.20 4.30 4.40 4.50 4.60 4.70 4.80 I am involved in decisions that affect my work. The person I report to treats me with respect. I like the work I do. I respect the abilities of the person to whom I report. The person I report to is a good communicator. The person I report to gives me useful feedback. Leadership Support Overall EOP Participants (n = 124) EOP Non-Participants (n = 16)
- 35. Executive Productivity 25% 46% 27% 50% 21% 60% 24% 54% 0% 10% 20% 30% 40% 50% 60% 70% Disagree Agree Disagree Agree NecessaryExecutive Training90-DayTransitionPlan 2015 2013
- 36. Executive Productivity 8.1% 9.5% 10.9% 26.5% 46.9% 7.1% 7.9% 17.3% 33.8% 37.2% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% < 30 Days 30-60 Days 60-90 Days 90-180 Days Still Discovering Areas that I Need to Understand 2013 2015
- 37. Best Practice Recommendations 1. Audit your organization’s talent management system Which Talent Management Best Practices are consistently executed across your organization? Identify those Best Practices that are executed sparingly or inconsistently. Interview senior leaders across facilities and functional units to assess the quality and consistency of talent management practices. 2. Sharpen the business case for investing in talent management practices Elevate the strategic priority of talent management by highlighting the impact of Best Practices on clinical outcomes via CMS’s Value-Based Purchasing program. Compare anticipated retirements with leadership benchstrength (at least one ‘ready now’ candidate) across executive positions and critical leadership roles. Develop a Talent Management Scorecard that benchmarks your organization’s talent management and succession planning capabilities.
- 38. Best Practice Recommendations 3. Align talent management practices with strategic initiatives (diversity, quality outcomes, LEAN) Create a formal mentoring program for senior leadership teams that integrates high potential employees identified through talent review sessions. Engage senior leaders in teaching courses as part of leadership development programs, learning sessions, or other forums. Ensure high potentials’ development plans include participation in system-wide initiatives. 4. Enhance talent assessment and succession planning practices Adopt or develop a standardized high potential assessment tool. Utilize nine-box tools (or equivalent) that plot employees in critical positions according to job performance and leadership potential. Create talent profiles and succession plans for critical positions. Assess high potential leadership competencies at the front-line.
- 39. Best Practice Recommendations 5. Assess composition, format, and consistency of talent review sessions Conduct annual talent review sessions that target multiple talent pools. Complete annual talent review sessions at least two months following the completion of the performance appraisal process. Staff annual talent review sessions with an experienced HR/OD facilitator. Ensure that review session agenda addresses high potential leadership development opportunities that are aligned with strategic initiatives. 6. Implement consistent, multi-rater performance feedback processes Offer employees in managerial roles with standardized, confidential feedback on their leadership competencies via 360-degree, multi-source feedback processes. Establish formal intervals (at least twice per year) in which high potential employees meet with their supervisors for formal performance feedback. Incentivize support for talent management practices via managerial performance appraisal practices, such as goal-setting and incentive pay plans.
- 40. Best Practice Recommendations 7. Enhance workforce diversity initiatives Accelerate your organization’s workforce diversity initiative by seeking transparency with the high potential designation process and outcomes. Formally train managers to clearly communicate high potential status to employees, such as skills training in ‘crucial conversations’. Identify management incentives that actively promote a culture of adopting an enterprise-view of talent by ‘releasing’ high potentials to other business units. 8. Develop onboarding programs for managerial promotions and external hires Design and deploy formal onboarding programs for employees promoted into management positions or new roles, as well as managers hired externally. Design formal onboarding programs to include employee orientation, new leader assimilation activities, 90-day transition plan, and stakeholder interviews. Develop a leader assimilation program that facilitates new managers’ integration with their direct reports, peers, and other key organizational stakeholders.
- 41. Best Practice Recommendations 9. Develop high potential employees Selectively place high potential employees into experiential development opportunities that are directly tied to strategic, system-wide initiatives. Engage senior leaders in the design and sponsorship of action-learning projects as part of ‘leadership academies’. Utilize job rotations whereby high potential leaders are re-assigned on a least a half-time basis to roles in other functional units or facilities. 10. Evaluate and reinforce the talent management system Develop a Talent Management Scorecard for your organization that comprises those metrics that are most critical for reporting to the board. Engage management teams in a discussion of the most critical metrics for evaluating the talent management system’s strategic impact. Mandate annual reporting of your organization’s Talent Management Scorecard results to multiple stakeholders, including the governing board and management teams across the hospital or health system.
- 42. Concluding Comments • Questions, comments, and feedback are welcome. • Thank you! Kevin S. Groves, Ph.D. Associate Professor of Management President, Groves Consulting Group Graziadio School of Business and Management Pepperdine University kevin.groves@pepperdine.edu | (310) 568-5729
Editor's Notes
- N = 133
- Prior research indicates that the total cost of nursing turnover, including hiring costs, training costs, and lost productivity, is conservatively $31,486 per nurse. When applied to the current sample of hospital organizations (Mean FTEs = 16,741) and assuming that nurses comprise 20% of all employees, the 4.87% reduction in annual nursing turnover for high-performing hospital systems represents a total cost savings of $5.13M. The nursing turnover costs for high-performing hospital systems was $9.21M (293 new nurses) compared to $14.35M for low-performing organizations (456 new nurses). Waldman, J., Kelly, F., Arora, S., & Smith, H. (2004). Johnson, L. (1999). Cutting costs by managing nurse turnover. Balance, September/October, 21-23. Gray, A., Phillips, V., & Normand, C. (1996). The costs of nursing turnover: Evidence from the British National Health Service. Health Policy, 38, 117-128.
- Medicare Spending per Beneficiary (MSPB-1) assesses payments for services provided to a beneficiary during a spending-per-beneficiary episode in which the payments are standardized and adjusted to account for variation in geographic costs and variation in patient health status. Higher scores on this standardized metric indicate greater Medicare spending per patient or beneficiary. Likewise, the Medicare Spending per Episode metric assesses the mean payment for services or claims during the hospital’s Medicare Spending per Beneficiary (MSPB) episodes. These mean Medicare payment amounts have been price-standardized to remove the effect of geographic differences and add-on payments for indirect medical education (IME) and disproportionate share hospitals (DSH).
- HiPo ID Definition Is there a clear definition of high potential leader that is understood and applied across the system? Many systems define as the ‘capability to advance two or more levels beyond one’s current position” Is this definition consistently utilized during talent review sessions (e.g., not conflating performance with potential)? Talent Review Sessions Disciplined, annual process of engaging management teams at multiple levels (affiliate/hospital, regions, and system office) to Adopt a system-wide approach to assessing leadership talent (purpose of review meeting is to both address current replacement needs and also create central, searchable depository of leadership talent Formal Assessment Tools Utilizing validated instruments for assessing high potential (e.g., traits, characteristics, and competencies tied to future leadership performance)
- Clear definition of high potential leader A high potential employee is defined as someone who is capable of rising to and succeeding at a more senior, critical role. An employee's potential is defined in terms of their personal aspirations, functional Multiple assessment factors Potential, promotability, risk of loss, impact of loss Strong link between talent assessment and developmental assignments/experiences LEAN project, Leadership Academy, regional/system project, new positions Talent review meetings facilitated to ensure collaborative, system-view of leadership talent Disciplined use of a performance management platform Employees complete a Talent Profile Managers complete potential metrics for employees in target populations Sufficient time between performance evaluations and potential ratings After talent review meeting activities Updating performance management system with calibrated potential ratings Managers conduct development discussions with high potentials, identified successors, and emerging leaders
- After a 30-plus-year career with Northern California’s not-for-profit Sutter Health network of doctors and hospitals—including the past 10 years as president and chief executive officer—Pat Fry announced today he will retire on Jan. 4, 2016. Fry joined Sutter Health as an administrative resident at Sacramento’s Sutter General Hospital. In just 10 years, he rose to the position of CEO of Sutter General and Memorial hospitals. Fry went on to hold region and division executive leadership positions, assuming the position of Sutter Health’s chief operating officer in 2000. He became president and CEO in 2005. The Sutter Health board of directors named Chief Operating Officer Sarah Krevans to succeed Fry. Sutter Health’s chief operating officer since 2012 and a Sutter Health executive for 16 years, Krevans, 56, has provided strong leadership and clear vision borne of nearly 30 years of executive experience in the healthcare field. “Sarah is a respected, community-minded leader who is exceptionally well qualified to assume the role of Sutter Health’s chief executive,” said Dr. Smith.
- ATTRACT/SELECT/ONBOARD TALENT (n = 4) Managers hired from outside our organization complete a formal on-boarding program (a systematic learning and socialization process lasting at least three months). Employees promoted into managerial positions or roles that are new to our organization complete a formal onboarding program. The distinctiveness of our organization is made clear to external candidates for key positions. The selection process for managerial positions involves behaviorally-based interviews linked to leadership competencies. Onboarding Board book General and leader orientations Stakeholder interviews New leader assimilation
- Clear definition of high potential leader A high potential employee is defined as someone who is capable of rising to and succeeding at a more senior, critical role. An employee's potential is defined in terms of their personal aspirations, functional Multiple assessment factors Potential, promotability, risk of loss, impact of loss Strong link between talent assessment and developmental assignments/experiences LEAN project, Leadership Academy, regional/system project, new positions Talent review meetings facilitated to ensure collaborative, system-view of leadership talent Disciplined use of a performance management platform Employees complete a Talent Profile Managers complete potential metrics for employees in target populations Sufficient time between performance evaluations and potential ratings After talent review meeting activities Updating performance management system with calibrated potential ratings Managers conduct development discussions with high potentials, identified successors, and emerging leaders
- To assess the EOP’s impact on first year executive job performance, data were obtained comparing Annual Performance Review ratings for executives who participated in the EOP activities (New Leader Orientation, Stakeholder Analysis, etc.) to those executives who did not complete these activities. In order to estimate the impact of the redesigned EOP on first year job performance, only executives who began their tenure at Cleveland Clinic in 2014 were included in this analysis. Illustrated in Figure 4.2, EOP participants (n = 194) were rated significantly higher on their first year performance review ratings (36.1%) for the top-box rating (exceptional performance) compared to those executives who did not participant in the EOP (31.8%). By comparison, close to three times fewer EOP participants (3.1%) scored in the lowest category (meets most expectations) compared to executives who did not complete the EOP (9.1%).
- The 2014 annual employee engagement survey also demonstrated the EOP’s positive impact on executive’s assimilation to Cleveland Clinic and their leadership role. Overall, EOP participants (n = 124) reported a mean 4.44 employee engagement survey rating compared to executives who did not complete the EOP activities (n = 16) who reported a rating of 4.31 (see Figure 4.3). The aspect of employee engagement that clearly distinguished EOP participants (mean = 4.13) versus non-participants (mean = 3.81) was concerning their intent to “…stay with this organization if offered a similar job elsewhere”. As part of the annual employee engagement survey, which is administered by Press-Ganey, executives also rated the degree of leadership support they received during their first year at Cleveland Clinic. Depicted in Figure 4.4., EOP participants reported significantly higher leadership support overall (mean = 4.52) compared to non-EOP participants (mean = 4.32). Notably, the leadership support engagement survey items capture new executives’ evaluation of their boss, their work, and the degree to which they are engaged in meaningful decision-making processes. Given the EOP’s emphasis on hiring executives’ central role in the new executive onboarding process, the highly significant differences between EOP participants and non-participants across these survey items offer strong support for the program’s impact on executive assimilation. New executives who complete the EOP are significantly more likely to feel strongly supported by their boss via consist performance feedback, job design that affords meaningful work, and collaborative decision-making in their business unit.
- The 2014 annual employee engagement survey also demonstrated the EOP’s positive impact on executive’s assimilation to Cleveland Clinic and their leadership role. Overall, EOP participants (n = 124) reported a mean 4.44 employee engagement survey rating compared to executives who did not complete the EOP activities (n = 16) who reported a rating of 4.31 (see Figure 4.3). The aspect of employee engagement that clearly distinguished EOP participants (mean = 4.13) versus non-participants (mean = 3.81) was concerning their intent to “…stay with this organization if offered a similar job elsewhere”. As part of the annual employee engagement survey, which is administered by Press-Ganey, executives also rated the degree of leadership support they received during their first year at Cleveland Clinic. Depicted in Figure 4.4., EOP participants reported significantly higher leadership support overall (mean = 4.52) compared to non-EOP participants (mean = 4.32). Notably, the leadership support engagement survey items capture new executives’ evaluation of their boss, their work, and the degree to which they are engaged in meaningful decision-making processes. Given the EOP’s emphasis on hiring executives’ central role in the new executive onboarding process, the highly significant differences between EOP participants and non-participants across these survey items offer strong support for the program’s impact on executive assimilation. New executives who complete the EOP are significantly more likely to feel strongly supported by their boss via consist performance feedback, job design that affords meaningful work, and collaborative decision-making in their business unit.
- To assess the EOP’s impact on first year executive job productivity, OLPD collected baseline data via a New Leader Survey in 2013 and again in early 2015. For both years, the survey was administered to new executives who completed the EOP with the intent of identifying performance improvements that may be attributed to the EOP redesign. The survey asks new executives to evaluate the EOP across several criteria, including effectiveness ratings of the program’s various elements and self-assessments of executives’ preparedness and productivity in their leadership roles. Without exception, executives who completed the EOP in 2015 provided distinctly higher evaluations of program elements and productivity compared to EOP participants in 2013. Figure 4.7 presents survey results illustrating that 54% of executives in 2015 (n = 146) ‘strongly agreed’ or ‘agreed’ that their boss reviewed a 90-day transition plan during the first few weeks of their transition into their new leadership role. In 2013, only 50% (n = 100) of executives agreed with this statement. Similarly, 60% of executives in 2015 (n = 134) ‘strongly agreed’ or ‘agreed’ that they were provided the necessary training on key policies and processes to fully executive their leader job duties. This represents a marked increase from the 46% of executives in 2013 (n = 98) who agreed with this statement. As illustrated in Figure 4.8, executives in 2015 were far more likely to assess higher preparedness and productivity in their job role compared to executives in 2013. When asked to identify the point during their onboarding experience in which they were confident that they had the skills, knowledge, and abilities to fully executive their role, 46.9% of executives in 2013 (n = 99) responded that they were ‘still discovering areas that I need to understand” compared to 37.2% of executives (n = 99) in 2015. At the critical intervals of 60-90 days and 90-180 days, executives in 2015 (17.3% and 33.8%, respectively) were far more likely to rate productivity in their job role compared to executives in 2013 (10.9% and 26.5%, respectively). Taken together, these survey findings offer strong support for the redesigned EOP’s impact on executive job productivity during a challenging period of notably greater numbers of leaders who were new to Cleveland Clinic and possessed significantly fewer years of experience.
- To assess the EOP’s impact on first year executive job productivity, OLPD collected baseline data via a New Leader Survey in 2013 and again in early 2015. For both years, the survey was administered to new executives who completed the EOP with the intent of identifying performance improvements that may be attributed to the EOP redesign. The survey asks new executives to evaluate the EOP across several criteria, including effectiveness ratings of the program’s various elements and self-assessments of executives’ preparedness and productivity in their leadership roles. Without exception, executives who completed the EOP in 2015 provided distinctly higher evaluations of program elements and productivity compared to EOP participants in 2013. Figure 4.7 presents survey results illustrating that 54% of executives in 2015 (n = 146) ‘strongly agreed’ or ‘agreed’ that their boss reviewed a 90-day transition plan during the first few weeks of their transition into their new leadership role. In 2013, only 50% (n = 100) of executives agreed with this statement. Similarly, 60% of executives in 2015 (n = 134) ‘strongly agreed’ or ‘agreed’ that they were provided the necessary training on key policies and processes to fully executive their leader job duties. This represents a marked increase from the 46% of executives in 2013 (n = 98) who agreed with this statement. As illustrated in Figure 4.8, executives in 2015 were far more likely to assess higher preparedness and productivity in their job role compared to executives in 2013. When asked to identify the point during their onboarding experience in which they were confident that they had the skills, knowledge, and abilities to fully executive their role, 46.9% of executives in 2013 (n = 99) responded that they were ‘still discovering areas that I need to understand” compared to 37.2% of executives (n = 99) in 2015. At the critical intervals of 60-90 days and 90-180 days, executives in 2015 (17.3% and 33.8%, respectively) were far more likely to rate productivity in their job role compared to executives in 2013 (10.9% and 26.5%, respectively). Taken together, these survey findings offer strong support for the redesigned EOP’s impact on executive job productivity during a challenging period of notably greater numbers of leaders who were new to Cleveland Clinic and possessed significantly fewer years of experience.
- Audit your organization’s talent management system Which Talent Management Best Practices are executed across your organization’s talent management strategies, policies, and practices? Identify those Best Practices that are practiced sparingly or inconsistently across divisions, departments, and/or medical centers. Conduct an in-depth qualitative study of your organization’s talent management practices by interviewing senior management teams across facilities and functional business units to assess the quality and consistency of talent management practices. Sharpen the business case for investing in talent management practices Create greater urgency amongst senior management team and board members for elevating its strategic priority by highlighting the demonstrated impact of Best Practices on clinical quality outcomes as assessed through CMS’s Value-Based Purchasing program. Conduct analyses comparing the anticipated retirements with the leadership benthstrength metric (at least one ‘ready now’ candidate) across executive positions and other key leadership roles. Engage your top management team in a discussion of your organization’s Talent Management Scorecard results, including scores across the Best Practices and performance metrics, compared to the Group Score that provides a benchmark for your organization.
- Align talent management practices with strategic initiatives (diversity, quality outcomes, LEAN) Create a formal mentoring program for senior leadership teams across medical centers and functional business units, and integrate mentoring programs with high potential employees identified through the talent review sessions. Develop opportunities for senior leadership team members to teach courses as part of leadership development programs, stand-alone learning sessions, and/or sharing of best practices across facilities or functional business units. Mandate the annual reporting of talent management performance metrics and related succession planning outcomes to (a) the governing board and (b) senior management teams across the hospital or health system. Enhance talent assessment and succession planning practices Adopt or develop a standardized assessment tool for evaluating high potential leadership competencies, and utilize the assessment results as part of annual talent review sessions. Utilize nine-box tools (or equivalent) that plot employees in key positions or business units according to job performance and leadership potential. Push the assessment of high potential leadership competencies to front-line levels of management.
- Assess composition, format, and consistency of talent review sessions Conduct annual talent review sessions that target multiple talent pools, including senior leadership teams, management staff, nurse leaders, physician leaders, and high potential employees. Conduct annual talent review sessions at least two months following the completion of the performance appraisal process. Staff annual talent review sessions with an experienced HR facilitator who will enforce process guidelines associated with collaborative, non-politicized dialogue. Ensure that talent review sessions consist of meaningful discussion of leadership development opportunities for high potentials that are aligned with strategic initiatives, such as LEAN project experiences or quality initiatives. Implement consistent, multi-rater performance feedback processes Offer employees in managerial roles with standardized, confidential feedback on their leadership competencies via 360-degree, multi-source feedback processes. Establish formal intervals (at least twice per year) in which high potential employees meet with their supervisors for a formal discussion of their performance; and formally track these discussions. Examine managerial performance appraisal practices and policies for opportunities to incentivize support for talent management practices, such as goal-setting practices within one’s team or business unit.
- Enhance workforce diversity initiatives Accelerate your organization’s workforce diversity initiative by seeking transparency with the high potential designation process and outcomes. Formally train managers to clearly communicate high potential status to employees, such as skills training in ‘crucial conversations’. Establish a culture in which executives and managers across business units ‘release’ their high potential employees to other units across the hospital system; identify management incentives that actively promote a culture of adopting an enterprise-view of talent. Develop onboarding programs for managerial promotions and external hires Design and deploy formal onboarding programs for employees promoted into management positions or new roles, as well as executives hired from outside of the organization. Design formal onboarding programs to include employee orientation, new leader assimilation activities, 90-day performance review, and stakeholder interviews. Develop a leader assimilation program that facilitates a new manager’s integration with his or her direct reports, peers, and other key organizational stakeholders.
- Develop high potential employees Selectively place high potential employees into experiential development opportunities that are directly tied to strategic, system-wide initiatives, including special projects (e.g., cross-division/cross-facility assignments) and leadership development programs that include action-learning. Engage senior management team members in the design and sponsorship of action-learning projects; integrate senior management team members at multiple points in the team projects, including kickoff, key milestones, and final presentation of team findings. Utilize job rotations for high potential leaders whereby such leaders are re-assigned on a least a half-time basis to temporary roles in other functional units or facilities for skill development. Evaluate and reinforce the talent management system Develop a Talent Management Scorecard for your organization that comprises those metrics that the senior leadership team supports as most critical for reporting to the board. Engage management teams across the hospital or health system in a discussion of the merits of a balanced scorecard approach that includes employee performance, leadership development, and leadership diversity metrics. Formally report your organization’s Talent Management Scorecard results to multiple stakeholders, including the governing board and management teams across the hospital or health system.