Developing a Succession Planning Strategy

A comprehensive succession planning strategy is an important component of the overall business strategy for a corporation to meet its goals. An effective plan has the right mixture and the appropriate level of management support, the right candidates to fill key positions, and a strategy and plan to develop each successor (Figure 5.2). If there is an unbalance in this combination of elements, the strategy has the potential to be unsuccessful in meeting the needs of the organization.

Succession planning is an ongoing process that will require adjustments as the organization changes and implements new product lines or processes. Often succession planning is placed as a responsibility of the human resources department. The strategy should be linked to the company's human resource goals and objectives but should not be made a primary responsibility of the human resource department. The responsibility for succession planning must reside with the entire management team. A succession strategy will not be successful without management involvement and commitment.

FIGURE 5.2

Succession planning elements.