succession planning

Topics: Management, Leadership, Organizational studies and human resource management Pages: 24 (4833 words) Published: March 14, 2014
Succession Planning & Management
in Tough Economic Times

Succession Planning & Management
Table of contents
1. What is Succession Planning and Management?........................................... 2 2. Best Practice approach to SPM. ...................................................................... 3 .

3. How is SPM related to the Employee Life Cycle?........................................... 4 4. Measures of SPM Success. .............................................................................. 4 .

5. Why Does SPM Matter?..................................................................................... 5 6. The SPM Conundrum......................................................................................... 8

6.1. Prevalence of SPM........................................................................................ 8 6.2. The Value of SPM.......................................................................................... 9 6.3. Barriers to Success..................................................................................... 10 .

7. SPM and the Current Economic Environment. ............................................. 11 .
8. Conclusion........................................................................................................ 12 9. References........................................................................................................ 13

Succession Planning & Management
1. What is Succession Planning and Management?
For the purposes of this discussion paper, it is important to distinguish between the concepts of Succession Planning and Succession Management as these are frequently used interchangeably in the literature. The term “Replacement Planning” is also a concept that features frequently in discussions about succession. “Succession Planning and Management, or SPM, can be defined as a purposeful and systematic effort made by an organization to ensure leadership continuity, retain and develop knowledge and intellectual capital for the future, and encourage individual employee growth and development” (Schein, 1997; cited in Caruso, Groehler & Perry, 2005). The three concepts can be placed on a continuum, with Replacement Planning at one end and Succession Management at the other, with Succession Planning somewhere in between. The differences between the three practices are highlighted below (Berke, 2005):

Replacement
Planning

Succession
Planning

Succession
Management

Identification of Successors

Yes

Yes

Yes

Development of successors

Little or none

Yes

Yes

Top 2 or 3

Top 2 or 3

All

Managerial levels

Replacement Planning is a reactive approach to staffing that involves identifying replacements for key positions, usually at the senior levels of the organization. Little focused development occurs for the successor and it is commonly assumed that the current manager is also a sound role model for the next manager. CEO replacement was the original focus of replacement planning given the critical role the CEO plays in any business. It then evolved into Succession Planning which differs to Replacement Planning only in that identified successors undertake focused development. The process of succession planning is also closely intertwined with the workforce planning process. Each can only be as good as the other. Workforce planning allows the importance of job roles to be reviewed and critical training needs to be identified and prioritised (Kiyonaga, 2004). Without such information, key roles and employees are difficult to identify and development efforts will lack focus.

There is still much debate about whether replacements should come from outside or from within the organisation. Research suggests that insiders tend to deliver better results than those from outside (Zhang & Rajagopalan, 2004; cited in Berke, 2005). This is only the case however if insiders have been groomed for the role. The...


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