Defining Talent and Succession Strategy with OKR

Importance of Talent and Succession Strategy

Talent and succession strategy ensures business continuity. It aims for the process of developing internal leaders for critical roles. Talent management offers a broader perspective. It covers every high-potential employee. These strategies increase competitive advantage. They also reduce the risk of a leadership gap.

Sudden leaves or unexpected situations threaten business continuity. Talent and succession strategies ensure these gaps are filled quickly.

OKR's Contribution to HR Processes

The OKR methodology supports execution and innovation in HR processes. OKR's main goal is to ensure collaboration. It provides collaboration around measurable successes. HR's use of OKR makes it possible to measure the department's impact.

OKRs must be ambitious. They also need to be achievable. It is important that the defined goals move individuals or the organization forward.

Stages of Defining Talent and Succession Strategy

It is necessary to frame the talent and succession strategy within the OKR framework. This concretizes HR's contribution to strategic goals.

Assessment of Strategic Needs

The first step of the OKR process is determining the vision and mission. At this point, HR must assess organizational needs. Company strategies should be determined within the framework of the defined vision. OKRs aligned with company strategies will advance the organization. They will provide strategic development within a common goal framework.

At this stage, critical roles in the organization must be identified. Asking these questions will be beneficial when making this determination:

• Which critical roles are crucial?
• Who are the successors for these roles?
• Where do the OKR results of employees in or succeeding critical roles place on the performance matrix?
• What kind of action or development plan should be prepared for low-performing employees?
• If one side of the talent matrix is OKR, how should the other critical side, potential, be measured?
• What talent gaps will emerge in the next 1-3 years?
• How should these gaps be filled?

Answers to these questions should be sought.

Alignment and Transparency

The main feature of the OKR methodology is alignment. HR OKRs must be harmonized with the corporate strategy. The company's goal might be "Entering New Markets Quickly." HR's KR could be "Increasing the number of employees with new market competencies by 40%."

OKRs must be shared with all members. Transparency increases collaboration. It allows employees working on similar topics to combine their projects.

Monitoring and Adjustments

Outcomes should be provided at the end of the OKR cycle. Progress must be measured at regular intervals. OKRs need to be evaluated periodically. Goals are readjusted based on progress evaluations. A goal may be understood as unrealistic. In this case, the goals can be revised.

Strengthening Talent Management with OKR

Talent management involves bringing employees aligned with the company culture and principles into the organization. It also includes the processes of developing employee potential. OKR adds clarity and measurability to these processes.

When defining critical roles, factors should be considered. These include the replaceability of these roles, internal succession potential, and role-specific competencies. Specific competencies are, for example, advanced foreign language or programming knowledge. Talent codes should be created for the employees filling and succeeding these roles. This should use OKR and potential outcomes. The 9-box model is one of the most used methods in this process.

After talents are identified, development plans are made. Mentoring, coaching, and training needs are analyzed. This process should be renewed and revised periodically.

Developing a Leadership Mindset

Succession planning in leadership aims to create a talent pool. This pool is important for critical roles. This planning focuses on cultivating internal leaders. Let's write an OKR related to this process.

Example OKR: Disseminate an Agile Leadership Mindset for the Future Across the Organization

KR 1: Increase the rate of managers participating in the new leadership approach training to 90%.

KR 2: Raise the leadership coaching/mentoring satisfaction score to 4.0/5.0. Measured in the corporate feedback survey.

KR 3: Double the number of potential successors assigned to cross-functional projects.

These objectives link leadership development to concrete outcomes. The results must be measurable.

Developing High-Potential Talent

OKR facilitates the identification of potential leaders. It encourages investment in internal company talent. The right talent is determined and tracked strategically. This is done through objective and measurable results.

When creating talent pools, OKR outcomes on one side must be considered. Potential outcomes on the other side must also be considered. Role-specific competencies must be defined while determining potential. Company values or principles must be established. Role-specific competency measurements play an important role in determining potential. These measurements are developed through 360-degree evaluation outputs. These outputs use questions based on company values and principles. In light of these outputs, talent matrices and codes are created. Candidates for the high-potential talent pool are identified.

Example OKR: Accelerate the Development of High-Potential Talent

KR 1: Create a mentoring program for every high-potential employee. This program should be paired with senior managers.

KR 2: Ensure 75% of high-potential employees participate in development opportunities. Company-wide development projects are an example of this.

KR 3: Raise the average performance score of the high-potential group to 3.8/5.0.

This structure makes providing development opportunities a part of the OKR.

Institutionalizing the Succession Strategy with OKR

Succession plans must be continuously updated and developed. OKR ensures this continuity. OKR outcomes provide important input when updating succession plans. Successor roles, employees, and talent codes should be regularly revised.

Protecting Critical Roles

Example OKR: Fully Guarantee Business Continuity in Critical Roles

KR 1: Identify at least 2 successors for 95% of critical positions. Employees on the succession list should be ready or in development.

KR 2: Reduce the average transition time of identified employees to a critical role from 3 months to 1 month.

KR 3: Ensure 100% completion of training documentation by employees in critical positions. These documents must cover corporate knowledge and culture.

This OKR aims to protect organizational knowledge and culture.

Performance Evaluation and OKR

Traditional performance evaluation must be separated from OKR. An OKR success rate of 70% and above is considered sufficient. Regularly achieving 100% of KRs indicates that the goals are not ambitious enough. OKR facilitates learning and development.

If OKR performance falls below 70%, the methodology should be reassessed. HR manages the feedback and adjustment process.

The OKR methodology transforms the Talent and Succession strategy. It elevates it from an abstract HR task. It makes it a measurable part of corporate success. OKRs ensure that HR works in harmony with strategic goals. OKR measures talent development and leadership potential. The results must be tangible and traceable. It enables collaboration. It aligns HR goals with the goals of other departments.

Talent management plays a critical role in providing competitive advantage. The OKR system offers a framework for these strategies to be realized efficiently. This allows HR to save labor and time.

The integration of OKR and HR guarantees the company's sustainable growth.