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Succession Planning (FL56)

Preparing Tomorrow’s Leaders
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  • Chart an Effective Succession Plan

    In the constant rush to execute day-to-day operations, corporate decision makers often push succession planning to the backburner. Recent studies show that a majority of companies either do not have a plan or do not update it regularly — leaving them vulnerable and unprepared for change.

    Part of ongoing excellence, however, is resilience. Forward-looking companies see succession planning as an opportunity to reinforce corporate identity, elevate operational performance and ensure continuity. They recognize the link between organizational objectives and individual goals, and they understand how succession planning impacts the bottom line.

    Designed for human resources and executive teams at companies of any size, industry or region, this report showcases succession planning best practices with real-world case studies and sample plans from 25 of the world’s top companies.

    Absorb lessons from their triumphs and mistakes — and map a solid succession plan that positions you to meet tomorrow’s challenges head on.

     

    Align succession plan with company values and goals

    Create an integrated design team that translates priorities into key competencies — not only at the CEO level but in every role. Discover how succession planning helps teams meet concrete goals, and develop answers for multiple “what if” scenarios.

     

    Attract and retain talent

    At its core, succession planning is about leadership development. Adapt innovative models for assessing employee performance from leading companies’ approaches to professional development. See how planning helps to manage challenging transitions and the workplace generational gap.

     

    Drive continuous improvement

    As your company’s needs change, your plan should evolve. Gauge its effectiveness — see which measurements to track, incorporate feedback and avoid the five most common pitfalls of succession planning.

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  • Companies Included in Succession Planning Research

    This report showcases a range of companies, either as case studies or as part of the appendix’s sample documents. These companies vary by industry, size, type and location to provide a comprehensive sample of succession planning worldwide:

    • Apple
    • AT&T
    • Australian Government’s Small Business Initiative
    • Brigham Young University
    • Cable Company
    • Chemicals Company
    • Construction Materials Manufacturer
    •  Consumer Packaged Goods Company
    • Credit Union, National Coalition of Firefighters
    • Deutsche Bank
    • Electronics Company
    • General Electric
    • Household, Hardware and Packaging Products Company
    • IBM
    •  Insurance Company
    • IT Company
    • McDonald’s
    • Motorola
    • Natural Resources Production and Refinement Company
    • Northland Foundation
    • Pharmaceutical Manufacturer
    • Pixar
    • PricewaterhouseCoopers
    • Procter & Gamble
    • Transportation Company
    • United States Department of Agriculture, Agricultural Research Service
    • United States, State of Iowa
    • Xerox

     

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  • Succession Planning Findings and Data

     

    Chapter 1: Building the Succession Plan

    • Understand how succession plans drive corporate strategy and ensure strong company health.
    • Set priorities by aligning succession planning with corporate values and future goals.
    • Identify, communicate and measure key competencies to guide employees’ professional development.
    • Involve the right stakeholders at each stage of the succession planning process.
    • Confidently prepare for the unexpected by running “what if” scenarios.
    • Explore case studies to see how global firms benefit from succession plans

     

    Chapter 2: Implementing the Succession Plan

    • Evaluate, monitor and grow your talent bench.
    • Determine which metrics will best allow you to track candidates.
    • Build a ranking system to allocate development resources.
    • Avoid common pitfalls in rolling out your succession plan.
    • Guarantee a smooth leadership transition by providing support systems at every step.
    • Review case studies showing how leading companies roll out their plans

     

    Chapter 3: Measuring and Improving the Succession Plan

    • Measure succession plan results — learn from successes and failures to continually reassess your plan.
    • Establish systems to encourage employee self-development.
    • Manage the effects of the generational gap in the workplace.
    • Adjust succession planning to meet changing needs with two case studies.

     

    Chapter 4: Appendix

    Explore 14 real-world plans and forms for succession planning and employee development:

    • Agriculture Research Service, US Department of Agriculture
    • Australian Government Small Business Initiative
    • Chemicals company
    • Construction materials manufacturer
    • Consumer packaged goods
    • Electronics maker
    • Financial services company
    • Household, hardware and packaging products company
    • Information Technology (IT) company
    • Insurance firm
    • Natural resources production and refinement company
    • Northland Foundation
    • Pharmaceutical manufacturer
    • Transportation company

     

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  • Succession Planning Report Sample

     

    Taken from the Executive Summary, the following sample outlines two of the report’s most central concepts. The full report explores these findings in depth, complete with up-to-date case studies, metrics and models.

    Ensure Succession Plans Are Organic and Adapt to Market Needs

    Succession planning should not be a static process. Companies’ needs change, and what a company needs today is not necessarily what it needs tomorrow. A successful succession plan should reflect that reality. It should adapt to changing market needs and be organic, bringing in the opinions of the board, the CEO and human resources.

    In Korn/Ferry Institute’s 2010 survey of 1,300 executives, almost half of the respondents (48%) felt succession planning is more important now than it has ever been, but 49% of companies have not created a succession plan in the past three years. These results are troublesome on two fronts: 1) that companies do not have a plan in place and 2) that they have not revised it recently. A lot can happen in three years: new talent is brought on board, existing employees are theoretically ready for new responsibilities, and competitors rise and fall. These events all require company action. The evolving talent pool — and competition — requires that succession plans be constantly reassessed.

     

    Focus on Talent Acquisition to Build Bench Strength

    A company’s most important asset is arguably its bench strength. Apple would be nothing without the talented and creative minds behind the scenes developing new products. Google would not be known for innovation without its technologically savvy staff. McKinsey’s wealth of expertise would not be sought out without analytical and knowledgeable staff tracking events worldwide. Each company requires specific talents in order to function.

    Yet in talent management firm DDI’s 2011 survey of 1,897 HR professionals and 12,423 executive leaders from 74 countries, 86% of HR staff reported they did not have a strong bench. This directly impacts companies’ ability to meet future needs, jeopardizing the long-term success of the company.

    When developing a strong bench, companies need to look both internally and externally. It is often advantageous to direct more time and training into developing internal strength, as existing personnel have already established a record of their work ethic and ability to learn. Furthermore, they are already accustomed to the company culture. However, external candidates should also be considered, as they can bring new perspectives that may also prove to be beneficial. When companies are considering both internal and external candidates, it is important to have well-documented metrics that measure potential candidates to eliminate any biases or oversee important factors.

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The Benefit:

Build, implement and improve your company’s succession plan using real-company metrics, case studies and sample plans. 

 
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