Succession Planning
In today’s business environment, cut-throat competition has become a mainstay driver for innovation and pursuit of competitive advantages in businesses. Succession planning has become a focal point for the achievement of organizational objectives. Sukay and Patrick (2009) defined succession planning as a process of identifying and developing potential future leaders or top managers to fill a business’ critical positions. The contemporary practice, according to Sukay and Patrick (2009), has a broader span because it integrates the wider HR function. IBM, GE and Procter & Gamble are some of the savvy corporations that have adopted best practices as regards succession planning (Rodger, 2004). Succession planning (SP) has significant impacts on businesses’ short and long-term sustainment strategies.
Adequate SP offers short benefits to businesses. Bersin & Associates (2011) observed that serious consequences have in the recent past faced companies that are yet to devote adequate resources to SP. Short-term impacts of SP on business strategies include facilitation of smooth transition and sustaining the momentum of the organization. Axiom (2012 http://www.axiomcp.com/blog/ibm-knows-succession-planning) noted that ‘IBM knows succession planning’ following the company’s historical change of CEO in 2011 that saw an employee who joined it in 1981 rise to the occasion. The company was at least able to maintain its momentum and short-term stability. An adverse case is represented by HP. According to Bersin & Associates (2011 http://www.bersin.com/blog/post.aspx?id=3c14efb2-e50d-48c8-bd93-274a2e9b5420), HP’s stock dropped by 32% a few months after change in leadership thanks to its lack of a competent SP practice.
The impact of SP on a company’s long-term strategy is significant. SP helps propel a company to achieve its long-term objectives by affecting the growth of executive and other key individuals’ competence, and spearheading the organization on consistent practices. in an interview with the Wall Street Journal, Wyffles argued that SP helps companies to stay focused on long-term strategies and only make adjustments to improve them where necessary (2010, http://www.youtube.com/watch?v=ZFJ30aO4o3k ). In addition, the companies accumulate intellectual property pooled from various talents that will facilitate attainment of long-term strategies. Arguably, succession planning will dominate how top management and other key personnel in businesses are hired.
References
Axiom Blog (2012) IBM Knows Succession Planning (Web log post). Retrieved from:
<http://www.axiomcp.com/blog/ibm-knows-succession-planning>
Bersin & Associates (2011, October 26). Succession Management at IBM, Contrasted with Apple and HP.
Retrieved from: <http://www.bersin.com/blog/post.aspx?id=3c14efb2-e50d-48c8-bd93-274a2e9b5420>
Sukay, T. J. & Patrick, S. (2009) Succession Planning. Proquest Central, 152 (9) PP. 44-45.
Wyffles B. (2010, November 23). Succession Planning. Retrieved from:
<http://www.youtube.com/watch?v=ZFJ30aO4o3k>
Rodger, K. M. (2004). Succession Planning: Still Broken. Proquest Central. Retrieved from:
<http://search.proquest.com.proxyau.wrlc.org/docview/212108328/fulltextPDF?accountid=8285>
