I. INTRODUCTION
Succession planning is a process of identifying and developing an internal or external candidate to succeed the incumbent and meet the organizations objectives. Succession planning is perhaps best understood as any effort designed to ensure the continued effective performance of an organization, division, department, or work group by making provision for the development, replacement, and strategic application of key people over time (Rothwell, 2005, p. 10).
In this global business climate a solid succession plan is critical. When key people decide to leave or are unable to perform due to illness or pass away organizations that have a succession plan are more likely to transition smoothly. As per a 2012 report in the UK only 32% of companies actually have a full CEO succession plan in place with 43% of companies admitting to having experienced an unexpected change in leadership in the last 12 months (Hirsh, 2012, p. 5).
This paper will analyze what is succession planning and how to develop a succession plan. What are the key steps involved and what are the key challenges faced during succession planning and how to mitigate those challenges.
II. LITERATURE REVIEW
The goal of succession planning to is identify and develop the right replacement for an important position. So this paper will first analyze what are the common methods of creating replacements or backups (Froelich, McKee, & Rathge, 2009).
The paper probes further to understand if an internal or external candidate should be identified for the job. When is it better to have an internal or external candidate based on a study conducted for an HBR Report (Citrin & Ogden, Succeeding at Succession, 2010).
The paper then considers Rothwell W. J. (2014) re...
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...y useful approach which if in-trenched into an organization culture could be very helpful for smoother transitioning.
Succession planning is very important because it helps in the sustainability of the business and it helps to retain talent which is cheaper than developing/recruiting new talent. Retaining key talent also ensures that customers have continued confidence in your organization which is good for business (Alter, 2013).
With succession planning in place an organization can align candidates to meet the future needs of the organization by providing them with necessary training to be competent in leadership roles. With an ageing workforce that is creating more voids in higher management roles it is imperative that all companies get their succession planning strategy in place to retain and attract future talent to compete in the global marketplace.
These types of individual’s experience special training and are required to produce spectacular succession for their organization.
...d attributes listed in this paper described the qualities which best enable future strategic leaders to be successful in a volatile, uncertain, complex and ambiguous environment. Also addressed was the need to cultivate future strategic leaders; this method conflicts with traditional methods of placing individuals in strategic positions without utilizing a vetting process. Therefore, it should be concluded that strategic leaders should be developed and identified through experience and training and lastly channeled through a tailored education process. It is also important to note, that they need to know where they're going, (vision) they need to actively communicate (communication skills) this to both their subordinates and especially to those outside the bounds of their organizational structure all while having the fortitude to see thing through (persistence).
There are many advantages of internal recruitment. It is more cost effective for the organisation, it gives existing employees opportunities to advance their careers therefore retaining staff, the employer will also know the staff member and can use their strengths and weaknesses effectively with minimal training. However, there is also disadvantages. For example, it limits the amount of applications that can be received for...
...mensions correctly it will cause employees to become engaged, evolved and help with decision making in the organisation.
influences the implementation of succession planning, a critical requirement of organizational longevity. Organizational culture as a contextual factor in succession planning has not been rigorously researched. It is, however, an important area for study and theory generation. An understanding of the cultural context within which a succession planning system operates may serve to enhance the implementation, utilization, and change of succession planning systems in organizations.
Following the steps only goes so far and defining the elements of the plan is essential for success as well. These elements would include: 1) recruitment to find talent 2) assessments to evaluate how the leadership is doing in their jobs 3) performance management to make changes as necessary to the plan 4) succession planning to eliminate gaps 5) career planning to help develop the leader for their next position 6) development of leaders to fill the gaps.
Implementation of organizational growth falls to the responsibility of upper management and they develop the strategic plan for the company to flourish in the projected economic market. Oversight of this senior team can hinder the organizational projected strategy into a viable organizational process that today’s global market places high demands that make it very difficult to attain these goals or plans and bring all effort to no avail of achieving projected growth and strategy of the organization. Essential that key employees do not lack the skill to delegate responsibility as well as expect results that promote organizational growth and adherence to the strategy set by senior
The only way to develop the kind of leaders a changing organization needs is to make leadership a critical criterion for promotion, and then manage people’s careers to develop it.
In the article, “Leadership That Empowers: How Strategic Planning relates to Followership.” Brumm, & Drury, (2013), investigate the connection between leadership planning and its effect on followership. During the previous class much of the discussion centered on empowerment. It was clear that one of the attributes of a competent director is the ability to empower members. This article examined the outcome of strategic planning and its effects on followers.
Rupish, Sumit Kumar Chaudhuri. (2006). CEO’s @ Nike: Succession Guaranteed?. IBS Case Development Centre. Retrieved from
Health care facilities are slowly accepting the idea on how important leadership succession planning before it is too late. John Maxwell, an internationally recognized leadership expert, points out in his 21 Irrefutable Laws of Leadership that “a leader’s lasting legacy will not be measured by the buildings we build, the institutions we establish, or what our team accomplished. Leaders are judged by how well the people they invest in carry on after they are gone”.
... “table”. Discussions around creative and simpler solutions that are also commonly a less expensive approach to talent acquisitions have impacted the business perceptions on HR’s ability to consult and partner. As the economy turns upwards, shrinking labor pools are forecasted, and baby boomers will be leaving the workforce. Tennant will need to gather, assess, and learn a lot from metrics and how different recruitment sources being used to impact the business in order to manage turnover and control costs. Additionally, the future development of alternative approaches such as clear succession planning will better position the Tennant Company with a plan and strategy toward successful internal recruitment practices.
Will be able to take inputs/suggestions from the employees and use the best to improve the business.
... the company occurs when there is a position that need to be fill immediately and the employees who have capabilities to get the job may apply for it. All four steps in career management process are important and none of it can be skip.
Fairholm (2009) also suggests that the leadership plan helps to define what company has, what company wants and needs and what is the expectation for the leader to meed the goals of the company. Furthermore it provides the time frame for completion of relevant strategic goals and activities linked with them. The presented leadership strategy is based on 5 year plan with its revision in 2 to 3 years.