An Analysis of Succession Planning as a Strategy for Organizational Continuity
1. INTRODUCTION
Built on the idea of change, the roots of succession planning (SP) lie within anthropology and the study of kinship (Fox, 1967, pp. 16-7, 1993; Fortes, 1970, p. 305; Parkin, 1997, pp. 22-3, 127). Early work into business succession by authors such as Christensen (1953), Gouldner (1954), Trow (1961), and Guest (1962) helped to fuel its dissemination into a wider management context, which in the present day encompasses leadership planning, change management, human resources, and indeed almost any area of business involving change. While it may not have received as much attention in the general management literature as one might expect, it is unarguably a critical issue for any corporation, team, or individual, to consider how it plans for the future.
One definition of succession planning is:
The transfer of a business that results from the owner’s wish to retire or to leave the business for some other reason. The succession can involve a transfer to members of the owner’s family, employees, or external buyers. Successful succession results in a continuation of the business, at least in the short term (Martinet al., 2002, p. 6; SBS, 2004, p. 7).
Thus, in broad terms, it is a process through which companies plan for the future transfer of ownership and/or top management. However, care should be exercised so as to not confuse succession planning with replacement planning. While replacement planning is often referred to as a means of risk/crisis management aimed at reducing the likelihood of catastrophe from the unplanned loss of key personnel (Rothwell, 2001, p. 7), succession planning entails a longer term and more extensive approach towards the training and replacement of key individuals (Wolfe, 1996; Rothwell, 2001, p. 7).
Consequently, a more expansive definition is:
A deliberate and systematic effort by an organisation to ensure leadership continuity in key positions, retain and develop intellectual and knowledge capital for the future, and
Built on the idea of change, the roots of succession planning (SP) lie within anthropology and the study of kinship (Fox, 1967, pp. 16-7, 1993; Fortes, 1970, p. 305; Parkin, 1997, pp. 22-3, 127). Early work into business succession by authors such as Christensen (1953), Gouldner (1954), Trow (1961), and Guest (1962) helped to fuel its dissemination into a wider management context, which in the present day encompasses leadership planning, change management, human resources, and indeed almost any area of business involving change. While it may not have received as much attention in the general management literature as one might expect, it is unarguably a critical issue for any corporation, team, or individual, to consider how it plans for the future.
One definition of succession planning is:
The transfer of a business that results from the owner’s wish to retire or to leave the business for some other reason. The succession can involve a transfer to members of the owner’s family, employees, or external buyers. Successful succession results in a continuation of the business, at least in the short term (Martinet al., 2002, p. 6; SBS, 2004, p. 7).
Thus, in broad terms, it is a process through which companies plan for the future transfer of ownership and/or top management. However, care should be exercised so as to not confuse succession planning with replacement planning. While replacement planning is often referred to as a means of risk/crisis management aimed at reducing the likelihood of catastrophe from the unplanned loss of key personnel (Rothwell, 2001, p. 7), succession planning entails a longer term and more extensive approach towards the training and replacement of key individuals (Wolfe, 1996; Rothwell, 2001, p. 7).
Consequently, a more expansive definition is:
A deliberate and systematic effort by an organisation to ensure leadership continuity in key positions, retain and develop intellectual and knowledge capital for the future, and
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