Succession planning

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Topics: Management, Planning
SUCCESSION PLANNING
Definition.
Succession planning is a process for identifying and developing internal people with the potential to fill key business leadership positions in the company.

Is a process for identifying and developing potential future leaders or senior managers, as well as individuals to fill other business-critical positions, either in the short- or the long-term.

It can also be defined as a process whereby an organization ensures that employees are recruited and developed to fill each key role within the company.

Effective, proactive succession planning leaves your organization well prepared for expansion, the loss of a key employee, filling a new, needed job, employee promotions, and organizational redesign for opportunities. Successful succession planning builds bench strength.

To develop the employees you need for your succession plan, you use such practices as lateral moves, assignment to special projects, team leadership roles, and both internal and external training and development opportunities.

Companies that hire "superstar" CEOs from outside the company consistently underperform companies that develop their talent and promote leaders from within.
Levels of Succession Planning
There are three levels of succession planning which include the following:
1. Designated Replacement.
2. Situational Replacement.
3. Target Date Replacement.

1. Designated Replacement.
Designated replacement succession planning can be part of a small-business owner’s exit strategy or a form of continuity insurance for a larger business. Sometimes called “name in the envelope” succession planning, this type focuses on designating a replacement for the owner, CEO or other senior manager. A designated replacement is someone already qualified and trained, able to step in and immediately fill the role if, for example, the business owner passes away or is temporarily or permanently incapacitated.
2. Target Date Replacement.
The second type of succession planning



References: 1. www.cipd.co.uk/succession planning. 2. www.gnb.ca/succession planning and management guide. 3. www.eonetwork.org/top-five-succession planning.

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