Steps of the Talent Review Process Managing talent movement is equally as important as managing brands, finance, or any other key resource. The Talent Review Process drives the Company’s global succession planning activities, which are focused on putting the right people in the right positions at the right time to build a sustainable Leadership Pipeline. To see how the steps of the Talent Review process fit into the bigger CareeR process click on the CareeR process flow link to the right. What are the five steps to succession planning success? 1. Identifying Talent = Assessing the Potential and Readiness for progression 2. Reviewing Identified Feeder Roles = Ensuring Critical Roles that “Feed” Talent to Senior Levels Provide Possible Successors with the Development Opportunities Needed to Progress through the Leadership Pipeline 3. Completing Talent Review Templates = Filling Out Standardized Forms to Ensure Global Consistency in the Succession Planning Process 4. Completing a Gap Analysis = Identifying Gaps in the Leadership Pipeline 5. Sharing Post-Talent Review Feedback with Employees = Communicating Discussion Outcomes about the Employee to the Employee Overview The goal of succession planning is to: Identify and prepare suitable employees as possible successors to incumbents in roles through job rotation, development, and mentoring, while aligning individual career aspirations with Company need as much as possible. Accomplish the critical task of helping companies to identify gaps in their short-and long-term Leadership Pipeline, then create action plans designed to fill those gaps. Although the Succession Planning Process continues year-round, annual Talent Review meetings are used as the primary forum for managing the total process from a local to a global perspective. The Talent Review Process: BEFORE THE TALENT REVIEW MEETING Managers should have a good understanding of their employees’ Career Preferences and Strengths and Needs before Talent Review meetings take place. Step 1: Identifying Talent Assessing Potential Each year, managers assess each direct report’s potential to perform at higher-level roles based on: the individual’s demonstration of skills, knowledge, and behaviour in his/her current role and Leadership Passage the employee's performance against Leadership Capabilities and Functional Capabilities The Talent Definition Based on their current performance, if employees demonstrate the potential to significantly stretch and perform two grades higher than their current grade (their managers recommend they be identified as High Potential talent. Nomination process requires managers to complete and submit a Recommendation Form for consideration during the Talent Review meeting. Assessing Readiness Managers also need to assess the readiness of identified potential successors to assume an identified role. Readiness is defined as how many additional roles—not years—it will take for the potential successor to acquire the needed skills, knowledge, and behaviour required by the identified role: Ready Now: Ready after completing current role Current + 1: Ready after com pleting curr ent role + one more role Current +2: Ready after completing current r ole + two more roles Identifying High Potential talent-- and their state of readiness to succeed incumbents-- is critical to senior managers as they conduct Leadership Pipeline Metrics and Gap Analyses for presentation during the annual Talent Review meetings. Step 2: Identifying Feeder Roles In order to have a sustainable, robust Leadership Pipeline, positions must be available that will help successors develop the skills and capabilities necessary to progress to senior roles and allow fluid progression through the pipeline. Therefore, in every function, the Head of Function and his/her Top Team identify positions below Top Team as Feeder Roles: roles with significant breadth of opportunity for comprehensive development/experience/knowledge that High Potential talent will need to assume more senior roles in the function/business. Feeder Roles need to be flagged appropriately in TalenT for tracking and reporting purposes so that Succession Planners will have this information during Talent Review meetings. Step 3: Completing Talent Review Templates In preparation for all Talent Review meetings, end markets, functions, and regions complete standardized forms (prepared and distributed by HR) that drive talent discussions during the Succession Planning meeting. These standard Talent Review templates allow information to be easily captured, shared, and transferred when preparing materials for the next level of discussions, which helps to ensure global consistency in the Succession Planning process. Forms are partially completed by extracting data from Perform, Develop, and CareeR forms in TalenT. That’s why it’s important to have relevant, updated data in the TalenT system at all times—especially regarding an individual’s Mobility and Talent status. Step 4: Identifying Gaps in the Leadership Pipeline In preparation for the Talent Review, end markets, functions, and regions use their respective Succession Plans to prepare and present the results of a Gap Analysis: the most important and accurately predictive tool used during Talent Reviews. A Gap Analysis offers a clear picture of the current health of the Leadership Pipelines at all levels of the organisation against Leadership Pipeline Programme Deliverables. Each presentation should include a plan of action to address key issues discovered during the analysis and a progress report against goals set at the previous year’s Talent Review meeting. Gap Analysis Processes and Templates have been developed for regions and business units, and are available in the Identifying Gaps in Leadership Pipeline section. DURING THE TALENT REVIEW MEETING Senior leaders meet to review the Gap Analyses prepared by end markets/functions/regions so they can: Identify gaps in the Leadership Pipeline Determine possible successors Plan the development of potential successors Align individual career aspirations with Company need as much as possible Predict the long-term health of the Leadership Pipeline Agree strategies and actions going forward. An HR representative records Minutes during the meeting and later circulates to all Talent Review meeting participants for review. The Sequential Occurrence of Talent Review Meetings Talent Review – Who attends Main Area of Focus (may vary, depending on the size of the organisation) Functional Talent Review (referred to as G34, G35 managers and MTs and business mini-Talent Review) support staff (up to G33) Attended by Head of Function and his / her direct reports End market Tal ent Review G36 and G37 managers Attended by the GM and all Heads of G34 & G35 managers by exception, MTs Function by exception MT recruitment plan to support future pipeline Area Talent Review (where Top team members of end markets appropriate) Attended by Area Directors Regional Functional Talent Review Regional Heads of Function Attended by Regional Functional Directors Regional Talent Review GMs, Top team members Area Director and EBD Other managers by exception Global Functional Talent Review Functional Directors in markets, other G37/38 managers Main board functional director, regional functional managers, staff planner and G35 and G36 by exception senior central managers Main Board Talent Review GM population, Regional Teams and senior line managers, normally G38 and Main board of BAT above Talent Review meetings focus predominantly on a certain population, usually according to grade level. Information is fed from one Talent Review forum to the next. AFTER THE TALENT REVIEW MEETING Step 5: Sharing Post Talent Review Feedback with Employees After the completion of the Talent Review Process: Managers read through the distributed Minutes of the meeting and review the talent decisions that were made HR notifies managers of the Talent Review Comments that will be entered into TalenT for each direct report, as well as the date they will appear in the system Managers give feedback to their employees before the Talent Review Comments are entered into an individual’s CareeR form in TalenT NOTE: It is critical that employees receive feedback before Talent Review Comments are entered into TalenT. HR will notify managers what comments will be posted and when so that the feedback discussion can take place before employees see Talent Review Comments prematurely. (Managers should check to make sure the appropriate comments are attributed to each employee). • Once Post Talent Review Feedback has been shared with employees, employees update their CareeR and DeveloP forms as warranted in TalenT Overview Identifying High Potential Talent, Using One Potential Rating, Helps Ensure a Healthy Leadership Pipeline. During the Succession Planning process, it is critical to specifically identify individuals who have the ability to progress rapidly to top leadership roles. This will allow the organisation to tap the Company’s future leaders and ready them to assume their place in the Leadership Pipeline as business needs arise. By using just one Potential Rating, and only then to indicate these rapid risers, the Company is able to quickly gauge the health of its Leadership Pipeline, reduce the complexity of a multiple-rating system, and increase clarity for managers and employees alike. This is not to say those not identified are shut out of career progression opportunities. On the contrary, every employee has equal opportunity for progression when development opportunities are not doled out as rewards but are based on current and future performance needs. The First Step in the Talent Review Process: Assessing Potential and Readiness In preparation for Talent Reviews, managers should assess their direct reports for demonstrable indicators of the potential to perform at a two-grade stretch. Once they have identified their High Potential talent, managers complete a Recommendation Form. Next, managers need to determine how many subsequent roles the candidate must hold to develop the skills, knowledge, and behaviour required to move into an identified future role. Ready Now: Ready after completing current role Current + 1: Ready after completing current role + one more role Current +2: Ready after completing current role + two more roles Readying them for their next progression is critical to the sustainability of the Leadership Pipeline. Therefore, managers should work with them to create a 10-year Career Plan that will guide them in creating the most effective development plan to accelerate progression. Dispelling the Myths about talent Identification Talent identification It is used solely for Succession Planning purposes to view the sustainability of our Leadership Pipeline. It provides a snapshot that indicates at any given time whether the organisation has enough talent with the ability to progress to senior roles in the future. Being identified does not guarantee career progression; nor does it preclude non-Listers from advancing to senior levels. The Succession Planning Process includes the identification of any employee who has the ability to succeed incumbents in roles, not just those identified. Potential does not determine promotion, development, or “best job” offers. All employees are candidates for these opportunities based on current and future performance needs. Mobility is not a part of the talent criteria, nor does it impact an employee’s ability to be promoted or developed—although it may limit the opportunities available for progression. Remember: The TalenT system should be updated annually to reflect any changes to Talent and/or Mobility Status. How does a manager identify potential in an individual’s current performance? Managers will look for how the individual is currently tackling significant aspects of work done at the advance passage or grades. It is important that the individual is performing well at their own level, but stronger indicator’s of potential lie in their desire to conduct the responsibility of higher level roles, level of strategic thinking, ability to continue to learn quickly more complex issues, and emotional level- ability to learn from mistakes and build relationships. Attached is a report that reviews these elements in detail, as well as a High Potential Interviewing Guide and the High Potential Identification form to simplify and enhance your ability to identify high potential within the organization. How will this impact those not identified? We believe this is a positive message for employees. The ambiguity of potential ratings will be eliminated. In this scenario we are removing the labels except for one, which is necessary to assess the health of the pipeline for the future. Everyone will continue to be a part of a talent pool with opportunities for promotions and development. How does mobility impact the identification? Mobility has been streamlined to three categories: Fully mobile, Not mobile and Limited mobility (with an open field to record mobility limitations). Mobility is NOT a part of the identification criteria nor does it impact an employee’s ability to be promoted or developed, although it may limit the opportunities available for progression. Employees will need to reflect their mobility using the new criteria in preparation for the 2006 Talent Reviews. How does this impact an individual’s readiness for progression? Readiness is no longer identified in terms of years. This has not been helpful in planning next steps to ready individuals- a certain number of years in current role or new role? We will now identify readiness in terms of roles- ready now, ready after current role, or after 1 or 2 more roles. This allows managers to appropriately think through what skills, knowledge or experience is needing to be gained from one or two more roles that will better ready them to succeed the position. This is the same for every individual on a succession plan. However, it helps to ensure roles are being identified in order to progress.