Succession Planning

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Succession Planning RetentionRoadmap for
Leadership Continuity

• Jimmy Duncan, SPHR
• Workforce Planning Employee Development

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Session Topics

• The SCANA Profile
• Why Developing our People is a business
  imperative
• The business case for ensuring Leadership
  Continuity
• SCANAs holistic approach to Developing Leaders
• SCANAs Succession Planning Model
• SCANAs Leadership Development Model
• The Art of Effective Leadership at SCANA
• Portfolio of Developmental Tools
• Leaders Role in Development
• Results Assessment

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Company Profile

• 9 Billion Fortune 500 Company
• Southeastern Business Markets (GA/SC/NC)
• Headquartered in Columbia, South Carolina
• 8 Major Subsidiaries (Energy related businesses)
• SCEG Serving South Carolina for 156 years
• 557,000 Electric Customers 1 Million Gas
  Customers

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State of the Workforce

• Total SCANA workforce 5800 employees
  (12/31/05)
• Workforce growth trend Avg. growth rate of 2
• Avg. annual turnover 5.2 (lower than utility
  industry average)
• Avg. years of service 14.5 years
• Avg. age of employees 44
• of workforce over 40 70
• Employee retirements 1 Annual avg.
• Avg. age of new hire 34

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WORKFORCE PLANNING EMPLOYEE DEVELOPMENT VISION
STATEMENT To ensure that SCANA will, on an
on-going basis, have the right people with the
right skills in the right position available at
the right time to meet organizational needs.
WORKFORCE PLANNING EMPLOYMENT MISSION We
will proactively conduct workforce planning
activities that anticipate and plan for changes
in the workforce composition, and through
effective employment processes ensure the
availability of qualified talent to meet SCANAs
business needs.
EMPLOYEE DEVELOPMENT MISSION We will
proactively deliver learning options that are
geared toward enhancing employee knowledge of
essential competencies, leadership skills, and
organizational effectiveness to ensure SCANAs
on-going success.
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Developing our People Critical Success Factor
The People Plan enables our Business Plan
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Leadership Continuity is a Business Imperative
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Screaming Headlines

• McDonalds Corporation CEO (Jim Cantalupo) dies
  unexpectedly (April 2004)
• Harley Davidsons CEO (Jeff Bleustein) steps
  down, but will remain as Chairman (December 2004)
• Boeings CEO (Harry Stonecipher) is ousted amid
  improper conduct charges after just 15 months in
  position (March 2005)
• Disneys CEO (Michael Eisner) to step aside in
  September 2005 instead of September 2006 (March
  2005)

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The Business Case for Developing our Leaders

• Business Leadership Success Formula
• Leadership is the catalyst that delivers
  organizational success
• Leadership continuity is the key for ongoing
  success (business imperative)
• Why is Succession Planning important to SCANA?
• Our Business Model has changed (Business vs.
  operational emphasis)
• 15 of all SCANA employees are formal leaders
  (832 of 5600)
• 42 of our leaders will be retirement eligible
  over the next 10 years
• Key organizational question Where will the next
  wave of leaders come from?
• To meet this need, a formal approach to
  developing our leaders has become a top priority
• Key challenge The current workforce pipeline
  demographics mirror our leaders
• Laser-like focus on leadership development is
  imperative to SCANAs continued success

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SCANAs Leadership Drain
Targeted Exits at Key Leadership Levels
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The State of the Workforce Pipeline
Average Age and Service Overview
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Leadership Development Succession Planning Model
SCANAs Approach to Developing Leaders
The Success Formula Succession planning without
the proper execution of leadership development is
just replacement charting. To be effective,
these two separate systems must be highly
integrated and the success criteria must be
aligned to deliver targeted results.
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SCANAS Succession Planning Program

• April, 2006

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What is Succession Planning?

• Any effort designed to ensure the continued
  effective performance of an organization,
  division, department, or work group by making
  provisions for the development, replacement, and
  strategic application of key people over time
• (Ken Rothwell, How to Develop Leaders)

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Succession Planning Program - Primary Goals

• Provide leadership continuity to SCANA and its
  subsidiaries.
• Identify key leadership positions that are
  critical to SCANAs success.
• Identify individuals who are potential candidates
  for key leadership positions or have the
  potential to assume greater leadership
  responsibilities.
• Develop succession planning candidates to realize
  their full leadership potential and to be
  considered for appropriate key leadership
  positions across SCANA.
• Encourage the movement of individuals from one
  part of the business to another to fill key
  leadership openings.

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Succession Planning Program - Success Criteria

• An increased number of succession planning
  candidates who assume key roles identified in
  succession plans.
• A shorter period of vacancy in succession plan
  key positions.
• A higher percentage of succession plan key
  positions filled internally.
• An increased number of succession plan key
  positions that have named candidates on a
  replacement chart.
• An increased number of succession plan candidates
  with a ready now status.
• An increased number of succession plan candidates
  who move to higher levels of readiness.
• An increased retention rate for succession plan
  candidates.

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Succession Planning Program - Key Features

• Succession plan candidates are told that they are
  seen as individuals who have the potential to
  assume greater levels of leadership
  responsibility not specific positions.
• No guarantees are made to succession plan
  candidates that they will be selected for open
  key leadership positions.
• Replacement chart and high potential candidates
  identified.
• Business area senior leaders own talent profile
  sheet data this is not shared with succession
  plan candidates.
• Development plans are created with all succession
  plan candidates focused on increasing readiness
  and/or promotability.
• Optional developmental assessments are available
  to assist in creating development plans.

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Succession Planning Program Process Steps

• Step 1 Identify key positions
• Step 2 Identify succession planning candidates
• Step 3 Discuss succession planning candidates
• Step 4 Create succession plans
• Step 5 Create development plans
• Step 6 Implement and monitor plans

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Step 1 Identify Key Positions

• Key Position a position of formal leadership
  that is determined to be of primary importance
  due to to
• Retirement risk
• Difficulty in filling position
• Impact to areas business plan / strategic
  plan.

• Area leaders
• Request workforce planning analysis
• Identify Key Positions
• Identify key KSAs for key positions

Step 2 Identify SP Candidates
Purpose is to input and evaluate SP employee data
and nominate SP candidates.
Employees provide relevant work experience
(including international and start-up
experience), education, mobility, career
interests, etc.

• Employees update SP Data
• Area leaders complete Performance promotability
  assessment on all employees
• Area leaders nominate SP candidates
• Area leaders complete talent profile assessment
  on all SP candidates

Supervisors provide overall performance rating,
promotability rating, areas of strength/developmen
t, readiness to assume greater responsibility and
proficiency on leadership competencies
Timing February-August
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Step 3 Discuss SP Candidates
Purpose is to determine next possible positions
and development options.
LD department creates talent profile sheets for
each SP candidate and talent profile books for
area leaders.

• Area leaders hold talent discussions on
• Candidate qualifications
• Next possible positions
• Development opportunities

Step 4 Create Succession Plans
Area leaders create replacement charts for each
key positions. Area leaders identify and chart
high potential employees (HiPos)
Timing February-August
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Step 5 Create Development Plans
Development plans will increase readiness and
promotability.

• Area leaders
• Can use optional developmental assessments
• Discuss development with SP candidates
• Create development plans with each SP candidate
• LD recommends development options

Assessment Options - 360s - Simulations -
Comprehensive assessments - Stand-alone
assessments
Step 6 Implement Monitor Plans
Use SP plans in filling of open positions and
evaluation of the success of the SP process

• SP Candidates implement development plans
• Area leaders consider SP candidates for open key
  positions
• Area leaders monitor SP development plans an
  update at least once/year
• LD department evaluates SP process success
  indicators.

Timing September-March
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Succession Planning Program - Ownership and
Timeline

• SCANA Succession Planning Program is owned by the
  senior leadership team.
• All subsidiaries will participate in the SCANA
  Succession Planning Program on an annual basis.
• Succession plans must be created between February
  and August each year. Plans should be reviewed
  and updated at least once during the year.
• Subsidiary succession plans will then be
  available for use in the senior staff discussions
  on succession planning that occur in September.
• Program administration support is provided by the
  Leadership Development area and the Human
  Resource team supporting each business area.

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SCANAS Leadership Development Program

• April, 2006

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The Art of Leadership at SCANA

• Effective leaders at SCANA, are more than
  proficient managers.
• At SCANA, effective leaders
• Communicate directly, openly and honestly
• Develop individuals and teams
• Inspire trust, enthusiasm and commitment
• Bill Timmermann, SCANA Leadership Meeting,
  February , 2004
• SCANA CEO

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Leadership Development Program - Primary Goals

• Assist leaders in identifying developmental areas
  of focus.
• Provide developmental opportunities for leaders
  that will increase their effectiveness in their
  current role and prepare leaders to assume
  greater levels of leadership responsibility and
  reduce transition time into new leadership roles.
• Provide development opportunities that include
  leadership behaviors related to SCANAs core and
  leadership competencies.
• Establish a consistent leadership development
  curriculum across SCANAs business areas.
• Increase understanding of SCANAs leadership
  expectations.

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Leadership Development Program - Success Criteria

• Improvements in performance, promotability, or
  readiness of succession planning candidates who
  participate in the leadership development
  program.
• Increased knowledge or effectiveness in pre and
  post-participation leadership assessments.
• Overall increase in the corporate baseline of
  leadership assessments.
• Leadership development program participants being
  selected for key leadership openings.
• Overall business success in areas impacted by the
  leadership development program.

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Leadership Development Program - Key Features

• Linkage between leadership development and the
  corporate succession planning program, and other
  key HR systems.
• A focus on leadership behaviors that support
  SCANAs core (for supervisors) and leadership
  (for mid-managers and executives) competencies
• Targeted development to three leadership levels
  supervisor, mid-manager, and executive.
• Leadership assessments used to identify
  development needs and create focused development
  plans.
• A wide range of development options that include
  educational, relational, and experiential
  opportunities.
• A mixture of internal and external development
  resources.

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Leadership Competencies

• Business Acumen
• Ensures uncompromising safety of business areas
• Delivers exceptional customer service
• Displays results orientation
• Promotes business expansion
• Maintains high industry knowledge
• Drives change for continuous improvement
• Business Ethics
• Avoids illegal, unethical, or improper conduct
• Maintains unquestioned integrity
• Creates a workplace environment free of
  hostility, intimidation, and offensiveness
• Encourages good faith reporting of alleged
  wrongdoings
• Ensures that systems are in place to protect
  company assets
• Monitors code of conduct compliance
• Develops People
• Coaches and mentors others
• Attracts and retains key talent
• Demonstrates commitment to developing others
• Builds high performing teams

• Financial Stewardship
• Demonstrates financial leadership
• Creates shareholder value
• Maintains profit loss responsibility
• Ensures cost-effective operations
• Takes prudent financial risks
• Manages assets effectively
• Impactful Communication
• Articulates the vision
• Translates strategic concepts
• Builds trust
• Motivates others
• Relationship Building
• Displays empathy
• Establishes diverse networks
• Cultivates customer relationships
• Builds consensus
• Creates ownership through delegation
• Has dynamic interactions with employees

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Leadership Competencies..

• Are the foundation to the middle manager and
  executive leadership development programs.
• Are in addition to existing core competencies.
• Address the additional responsibilities of middle
  managers and executives.
• Drive expected behaviors in middle manages and
  executives.
• Are assessed as part of a leaders performance
  management cycle.
• Are included in a succession planning candidates
  talent profile.

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LD Program Participation

• Participation in SCANAs LD Program is optional.
• The LD program is available to all supervisors
  and above, as well to individual contributors who
  meet specific participation criteria. 
• In order for an individual contributor to
  participate in an LD program offering, they
  must 
• Be employed by the SCANA Corporation for a
  minimum of 2 years
• Demonstrate strong technical skills and high
  performance in his/her current job
• Be preparing to be considered for a positional
  leadership role within the next 3 years OR have a
  specific business need based on his/her current
  performance plan

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Leadership Development Program Model
Supervisory Development Target audience
supervisors, team leaders, and prospective
leaders Leadership career levels 1 - 3

• Leadership career level defines participant group
  for each tier.
• Overlapping tiers allows flexibility of
  leadership level participation.
• Supervisor tier uses core competencies as
  foundation.
• Mid-manager and executive tiers use leadership
  competencies as foundation.

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Leadership Development Program Options

• Leadership development options are promoted
  through SCANA U on the EDGE.

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LD Program Options - Supervisor

• Assessments
• SCANA 360 for Leaders - behavior-based assessment
  of core competencies
• Leadership Knowledge Assessment for SCANA - core
  competency based
• Education
• Leadership community on the EDGE online
  resource for leadership information
• In-house leadership library books, videos,
  cassettes located in LD area
• LEAD workshops 13 separate workshops including
  core and elective offerings
• Leadership online learning modules 15 online
  modules plus HR101 CBTs
• CTN broadcasts online broadcasts on leadership
  topics provided by CTN
• External education referral referral to local
  or regional workshops and seminars
• Relationship
• Coaching trained internal and local external
  leadership coaches, 3 - 6 months standard
• Mentoring corporate guidance on administering a
  business area mentoring program
• Job shadowing corporate guidance on
  administering job shadowing
• Experience
• Special projects business area use of special
  projects for development

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LD Program Options - Mid-manager

• Assessments
• Leadership competency 360 - behavior-based
  assessment of leadership competencies
• Simulation results-based simulation in
  fictitious leadership role
• Comprehensive assessment - battery of
  assessments on leadership effectiveness
• Stand alone assessment single leadership
  assessment, predictive in nature
• Education
• Leadership community on the EDGE online
  resource for leadership information
• In-house leadership library books, videos,
  cassettes located in LD area
• In-house mid-manager workshop 3-5 day local
  workshop, based on leadership competencies
• External education referral referral to
  regional or national workshops and seminars
• Relationship
• Coaching trained internal and local external
  coaches, 6 - 12 months standard
• Mentoring corporate guidance on administering a
  business area mentoring program
• Industry networking business area use of
  networking for development
• Experience
• Special projects business area use of special
  projects for development

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LD Program Options - Executive

• Assessments
• Leadership competency 360 - behavior-based
  assessment of leadership competencies
• Simulation results-based simulation in
  fictitious senior leadership role
• Comprehensive assessment - battery of
  assessments on leadership effectiveness
• Stand alone assessment single leadership
  assessment, predictive in nature
• Education
• Leadership community on the EDGE online
  resource for leadership information
• In-house leadership library books, videos,
  cassettes located in LD area
• In-house executive workshop 2-3 day local
  workshop, based on leadership competencies
• Executive book summaries online summaries of
  leadership books for executives
• External education referral referral to
  national executive education programs
• Relationship
• Coaching national external coaches, 6 - 12
  months standard
• Mentoring corporate guidance on administering a
  business area mentoring program
• Industry networking business area use of
  networking for development
• Experience

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Leadership Development - Leadership Community
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Leadership Development Program Accountability

• Senior leaders are accountable for
• ensuring that development plans are being created
• supporting participation in development
  activities
• balancing developmental needs with the needs of
  the business
• setting clear expectations for what is to be
  gained through participation in the development
  activity as well as how the development will be
  utilized at SCANA
• All program participants are accountable for
• driving their own development
• taking an active role in creating development
  plans
• identifying appropriate fulfillment options
• completing participation in the development that
  was selected
• applying the development in a meaningful way to
  some aspect of their work at SCANA
• The Leadership Development area is accountable
  for
• administering the leadership development program
• developing and maintaining program content
• scheduling program offerings
• registering program participants
• tracking the participation of participants

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• Connects the learning efforts for the SCANA
  family of businesses to the bottom line.
• Targeted Outcomes
• Drive SCANAs vision and expectations for
  employee development.
• Facilitate the marketing of corporate and SBU
  learning and development options.
• Serve as thee intersection for all learning and
  development communities at SCANA.

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SCANA University
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2005 SCANA University Metrics
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Leaders Role in Development (Retention Focus)

• Align developmental activities with targeted
  business outcomes
• View development as a process, not an activity
• Prepare employee for current or future career
  assignments
• Remind employees that development is a continuous
  process
• Hold employees accountable for their own
  development

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What is Measured, Gets Done

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Results Are On Target

• Succession Planning and Leadership Development
  Programs have been embraced and fully funded by
  senior leadership.
• Top 50 High Potential Employees have been
  identified and placed in acceleration program by
  senior leadership team.
• 2/3 of employment opportunities are filled by
  internal candidates.
• Only a 3 turnover rate in leadership levels
  during the last three years.
• All subsidiaries have begun to develop long range
  workforce plans which focus on the risk potential
  at the leadership level.
• Development has become embedded as a performance
  expectation through key HR and business systems.
• Managing performance and ensuring workforce
  planning is an integral part of leaders
  performance expectations

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Questions