Succession Planning and Management: A Guide to Organizational Systems and Practices
By David Berke
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Succession Planning and Management - David Berke
Preface
The purpose of succession-related practices is to ensure that there are ready replacements for key positions in an organization. This is so that turnover will not negatively affect organization performance. Interest in succession practices has been increasing over the past few years, spurred by demographic projections, such as those indicating that the number of workers aged 55 and older will increase 47 percent by 2010 (Britt, 2003). Companies must prepare as the baby boomer cohort begins to retire. But there are other trends as well. For example, turnover at the chief executive officer (CEO) level increased 170 percent between 1995 and 2003 (Lucier, Schuyt, & Handa, 2004).
CCL first published an annotated bibliography on succession planning in 1995 (Eastman, 1995). That bibliography focused primarily on the link between succession and management development. This bibliography has a broader scope; it is an update and expansion, commensurate with the maturation of this area of practice. In addition to linkages between succession and development, we also consider representative literature on CEO succession, high potentials, and succession systems and architecture. Each of these four sections is preceded by a brief introduction.
This bibliography is intended to be representative of current and past succession literature related to the four areas mentioned above. It is not intended to be comprehensive or to provide critical commentary. It is hoped that those who use this bibliography will find resources that help them in conceptualizing, planning, and implementing effective succession systems in their organizations.
I want to thank Elisa Hader for her early assistance with this project. I am grateful to Jennifer Deal, Rob Kaiser, Mike Kossler, and Clare Norman for reviewing the manuscript and providing their perspectives. And finally, my thanks to the editors who helped me create a better final version: Joanne Ferguson, Karen Mayworth, Pete Scisco, and Debbie Shoffner.
Introduction
If we consider succession processes along a continuum, replacement planning would be on one end, succession management would be on the other end, and succession planning would be in the middle. As the table below indicates, replacement planning focuses on the identification of replacements for key positions, usually at the top two or three levels of an organization. Basically, it is a forecast. It does not include the deliberate development and preparation of identified successors. If development occurs, it is ad hoc, or perhaps a manager will coach and guide the person he or she believes would be a good replacement. This strategy is based on the assumption that the current manager is also the model for future managers—not necessarily a wise assumption, especially given today’s volatile business environment.
At the other end of the continuum is succession management. The key features of this more elaborate, integrated, and systematic approach include the identification and development of high potentials so that when a vacancy occurs in a key position, the organization does not have just a list of potential candidates but a pool of better-prepared candidates. A talent pool or leadership pipeline may be created at most or all management levels. Sometimes organizations will include critical individual contributor positions as well. However, special attention usually is given to those at midsenior levels.
When recruitment, selection, and retention strategies are added, succession management can look very much like talent management (American Productivity & Quality Center [APQC], 2004). When the purpose of succession practices is readiness, talent management and succession management can become indistinguishable.
Continuum of Succession Processes
Succession management is the most robust approach and the most likely to provide a pool of qualified candidates. It has the added benefit of building capability at several management levels. However, it requires the most resources and an organizational culture that sees the value of talent development and understands how to integrate that into daily operations.
Succession planning has elements of succession management, but its focus tends to be more limited—identifying and developing successors for the top levels of the organization. Additionally, succession planning is often regarded as a less proactive, more static approach than succession management.
The reader should be aware that use of these terms often is inexact: what one company calls succession management, another might call succession planning or talent management.
What Has Changed
In the 1995 bibliography, Eastman lists the elements of an effective succession plan. Those elements are that the plan
• Receives visible support from the CEO and top management
• Is owned by line management and supported by staff
• Is simple and tailored to unique organizational needs
• Is flexible and linked with a strategic business plan
• Evolves from a thorough human resources review process
• Is based upon well-developed competencies and objective assessment of candidates
• Incorporates employee input
• Is part of a broader management development effort
• Includes plans for developmental job assignments
• Is integrated with other human resources systems
• Emphasizes accountability and follow-up
These elements continue to be repeated in much of the current succession literature. Similarly, just as Eastman focused on the link between development and succession, much of the current literature treats development as the core succession process.
What has changed conceptually (and in practice at some companies)