Informal Succession Planning Essay

773 Words2 Pages
bulb-icon

Recommended: Succession management concept

Succession Planning: Informal and Formal Methods Nowadays, succession planning is a must for all organization sizes. Unfortunately, businesses allow barriers to be their excuse in not formalizing a succession planning. As a result, firms will produce an informal process for short-term purposes and forgot to come up with solutions for long-term problems. Overall, succession planning must involve the very top, the board of directors, and have human resources (HR) aid in advancing tomorrow’s leaders for today’s roles.
Barriers to Succession Planning Many corporations struggle with bringing in quality talent into business (Paradise, 2010). Consequently, as the workforce continues to change at warp speed, talent benchmarking strategy is the biggest challenge management faces now and the next five years in all forms of succession planning (Sims, 2014). A strategy to overcome talent benchmarking is having talent reviews along with meeting notes (Sims, 2014). Documenting what took place in the talent review is essential for management to get planning underway and refer to the order of what should happen first, second, and so forth in talent management (Sims, 2014). Although it might be true that talent benchmarking being the mightiest challenge in informal succession …show more content…

One reason enterprises use informal method of succession because of the emotional aspect of having to judge the CEO on his or her performance (Cheloha, 2009). Since electing a new successor who is similar to the predecessor or a high-potential within the organization can be risky, the board of directors must be cautious of hurting other people’s feelings when they overlooked for someone (Cheloha, 2009). In addition, if the new successor were to leave, their loyal other ‘cream of the crop’ can walk out the door along with them and leave a lot more critical vacancies to fill (Cheloha,

Show More
Related

  • American Heart Association Case Analysis: Competitive Strategy and Operational Goals

    1019 Words  | 3 Pages

    The optimal scenario of the AHA would be to have a differentiated workforce that would consist of identifying "A" players and "A" positions throughout the organization where wealth or value is created to contribute to the bottom line of generating the billion-dollar goal by 2010 and placing those players in all positions throughout the organization. However, the reality is that the best action for the AHA due to budgetary and time constraints is to make strategic investments in the workforce that will have high impact and drive desired results by putting the right people in the right places and not the right people everywhere. The AHA did this by creating a new talent framework driven by eight operational goals to help build the foundation for how they will identify their "A" players and positions for strategic investment. The objecti...

    Read More

  • Analysis Of JB Hi-Fi

    1175 Words  | 3 Pages

    In 2014, JB Hi-Fi announced the retirement of their CEO Terry Smart. He had been with the company for more than 14 years. In an interview with Smart Company, Smart explained the process for hiring his successor. Smart (2014) stated that succession planning is not something that can be done overnight, it’s a long-term process and it’s part of the board’s role. When JB Hi-Fi promoted Richard Murray to CEO it was because of his extensive experience, knowledge, skills and contribution to the organisation over 11 years (Keating 2014). This example of JB Hi-Fi’s succession planning not only demonstrates their diligence in following their charter but also the emphasis placed on laying the right

    Read More

  • Simpson Family Case Study

    984 Words  | 2 Pages

    Simpson Seeds has been faced with a very tough situation of planning the transition of the ownership and leadership of their family business on to the third generation of the Simpson family. With a family that has grown to include 25 members of the Simpson Business Family, making a succession plan will be a tedious job in order to please everyone involved. In this transition, the Simpson family would like to maintain interfamily relationships with all family members – not just active (in the business) family members. In the following text, I will discuss how they should proceed with their succession planning to maintain their number one priority, family values, I will discuss who should lead the succession process for the family, and who all

    Read More

  • What Is Talent Management?

    1724 Words  | 4 Pages

    “According to the Pricewaterhouse survey, only 34 percent of CEOs feel that HR is well prepared to capitalize on transformational trends, and 9 percent say it is not prepared at all” (https://tmod.jhu.edu/talent_mgmt/talent_mgmt.cfm, pg. 2, para 1). Preparing the roadmap for the scavenger hunt is the first step in building an effective talent management program. In order to successfully retain the present and future goals, “Use that vision to identify skills and competency people need to make the company successful, the build your hiring, training, development and incentive programs around with it”, Cristin Stirchio, global head of talent for Cognolink, (https://tmod.jhu.edu/talent_mgmt/talent_mgmt.cfm, pg 2, para 6). If the CEOs who found their HR leaders utilizing the talent management guide were aware of the step by steps, they understand that by creating a plan has many parts. This can help leadership understand how in the beginning stages of talent development coincide with the success of talent management through strategy. HR will be able to merge its development into the map for the

    Read More

  • Managing Change in Leadership

    2144 Words  | 5 Pages

    McDonagh, K., Prybil, L., Totten, M. (2013). Leadership Succession Planning: A Governance Imperative. Trustee, 66(4), 15.

    Read More

  • ret

    644 Words  | 2 Pages

    While the scenario is presented as a fictional work, it may well be that this occurs on a daily basis. The conclusions here are based on observations and cultural views. There are many other factors that can be used to determine who should succeed a CEO that is retiring. Some of the items that might be considered are if a style change is needed or the persons experience.

    Read More

  • Leadership Styles in Corporations

    1168 Words  | 3 Pages

    In today’s business environment, corporations must be able to adapt and develop strategies that allow them to remain as competitive as possible within the markets they serve. Leaders within those corporations must be able to fully understand the most effective leadership style required depending on the situation at hand. One style may be effective in one situation while another style may need to be used in another. In this day of environmental dynamism, organizations have had to refocus on organizational capabilities in order to attain a competitive advantage in such an environment. This refocus has led to a break in routines and involves a shift in organizational norms and required knowledge. James Clawson discusses the three levels of leadership in his book entitled “Level Three Leadership: Getting Below the Surface.” This article will discuss some issues that may arise within corporations and what leadership styles may be most effective for differing situations based on Clawson’s text.

    Read More

  • A Nice Manager Case Study

    1073 Words  | 3 Pages

    Implementation of organizational growth falls to the responsibility of upper management and they develop the strategic plan for the company to flourish in the projected economic market. Oversight of this senior team can hinder the organizational projected strategy into a viable organizational process that today’s global market places high demands that make it very difficult to attain these goals or plans and bring all effort to no avail of achieving projected growth and strategy of the organization. Essential that key employees do not lack the skill to delegate responsibility as well as expect results that promote organizational growth and adherence to the strategy set by senior

    Read More

  • Why Change Programs Don 't Produce Change

    749 Words  | 2 Pages

    The only way to develop the kind of leaders a changing organization needs is to make leadership a critical criterion for promotion, and then manage people’s careers to develop it.

    Read More

  • Case Study: Waiting For Clearance

    1877 Words  | 4 Pages

    Managing ‘up’ “…means consciously and deliberately developing a meaningful task-related, mutually respecting relationship with one’s direct superiors” (Daft, 2015, p. 196). De La Vega should have strived to gain a clearer understanding of what his role would be as the ‘day-to-day’ operational leader. He could have employed the five principles of followership to establish a successful relationship with Bussard as CEO. The CEO failed to ‘manage up and down’ the hierarchal scale of his own organization as a leader and would not relinquish power. The CEO was dependent upon De La Vega to be his key “point man” in day-to-day operations. The follower-leader relationship is important to both the leader and the follower because “…Leaders of higher organizational levels depend upon their subordinates for information, support, and assistance in accomplishing the organization’s goals” (Daft, 2015, p. 197). Had the principles and strategies of effective followership, combined with the desirable followership traits of “cooperation, honesty, dependability and competency” (Daft, 2015, p. 211) been utilized by the CEO and COO, the outcome of the case study would have been

    Read More

  • In Search Of Excellence: Book Review: In Search Of Excellence

    1283 Words  | 3 Pages

    Numerous styles of management exist that the executive can adopt in leading the organization, such as autocratic, participative, as well as democratic. The management should adopt a style that incorporates the views and values of its workforce within the organization. The staff in an organization is the best assets that an organization can have. It is not enough for an organization to have the most qualified, experienced and professional workers in the field, rather it requires a dedicated team of workers willing to sacrifice and give their all to the success of the organization. The skills that an organization has, such as its corporate strengths, help in shaping its values and cultures, as well as boosting the esteem of its workers to enable them become more productive. Lastly, the organization needs to cherish the shared values within its midst. These elements bind the workforce and management of a company

    Read More

  • essay

    2006 Words  | 5 Pages

    Additionally, every year my organization hires new managers from different industries. Thus, if have to unvaryingly provide an advice to my organization’ CEO, it will be that there is always a huge pool of talented people who are inside our organization and most companies that fail have done so since their front-runners have failed to exploit the human capital accessible to them.

    Read More

  • Succession Planning And Talent Management Case Study

    2132 Words  | 5 Pages

    Quality health care is precipitously deteriorating amongst the nation’s health care industry. The health industry trends of high turn over rates amongst staff and important key employees are creating a rift in profit margins, decreasing patient quality care, triggering higher expenses and loss of patients (Hunt, 2009). In the “Best Practices in Health Leadership Talent Management and Succession Planning” case studies, presented by the National Center for

    Read More

  • Successful CEO Strategies

    968 Words  | 2 Pages

    Being a CEO is proven to be much more difficult than trying to become one. Over the last few months we have been examining the reasons behind the successes and failures of some great CEO practitioners. It seems that, despite the different managerial styles, great CEOs employ some common techniques. The following pages contain the golden rules of successful business leadership.

    Read More

  • Nepotism In Business

    840 Words  | 2 Pages

    Unfortunately, no matter who does nepotistic hiring or becomes the successor, the likelihood of a business surviving beyond the first generation is slim to none. (Lee & Lim, 2003) According to Lee and Lim's article "Family Business Succession" the author’s state that 30 percent of family firms in the United States survive into the second generation of family ownership. Approximately 15 percent to 16 percent survive into the third generation. (Lee & Lim, 2003)

    Read More

More about Informal Succession Planning Essay

Open Document