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Succession planning
From Wikipedia, the free encyclopedia

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 is a process for identifying and developing internal people with the potential to fill
key leadership positions in the company. Succession planning increases the availability of experienced and
capable employees that are prepared to assume these roles as they become available. Taken narrowly,
"replacement planning" for key roles is the heart of succession planning. Effective succession or talent-pool
management concerns itself with building a series of feeder groups up and down the entire leadership
pipeline or progression (Charan, Drotter, Noel, 2001). In contrast, replacement planning is focused
narrowly on identifying specific back-up candidates for given senior management positions. For the most
part position-driven replacement planning (often referred to as the "truck scenario") is a forecast, which
research indicates does not have substantial impact on outcomes.

Fundamental to the succession-management process is an underlying philosophy that arguesthat top

talent in the corporation must be managed for the greater good of the enterprise. Merck and other
companies argue that a "talent mindset" must be part of the leadership culture for these practices to be
effective.

Research indicates many succession-planning initiatives fall short of their intent (Corporate Leadership
Council, 1998). "Bench strength," as it is commonly called, remains a stubborn problem in many if not most
companies. Studies indicate that companies that report the greatest gains from succession planning
feature high ownership by the CEO and high degrees of engagement among the larger leadership team
(Kesler, 2002).

Companies that are well known for their succession planning and executive talent development practices
include: GE, Honeywell, IBM, Marriott, Microsoft, Pepsi and Proctor and Gamble.

Research indicates that clear objectives are critical to establishing effective succession planning (Kesler,
2002). These objectives tend to be core to many or most companies that have well-established practices:

å Identify those with the potential to assume greater responsibility in the organization

å Provide critical development experiences to those that can move into key roles

å Engage the leadership in supporting the development of high-potential leaders

å Build a data base that can be used to make better staffing decisions for key jobs
    
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