Succession Planning
Succession planning is not just about picking the next CEO. The best companies have leadership continuity plans designed to ensure the continued effective performance of the organization by making provisions for the development and replacement of key people over time.
Before: Global Pharmaceutical Giant Undergoes a Transformational Change Through Customized Leadership Development and Succession Planning
“The current president of the R&D division was scheduled to retire. The board of directors thought I had the leadership traits to succeed in that position so I was brought in as his number two. The hope was that I would be able to replace the president when the time came. That was the extent of the company’s succession planning. It didn’t take long for me to realize that the gaps in the division’s executive ranks were causing a lack of productivity. The stakes were high and without succession planning protocols the obstacles were even higher.
“I’ve always been a believer in leadership continuity planning, so I asked RHR to look at the situation not only to ensure my own transition, but to transform the leadership practices within the division and create a practical succession planning process.”
After: Succession Planning Process Fills Leadership Gaps and Strengthens Management Team
“As part of addressing the succession planning problem, we wanted to make sure the new executive succeeded in the number two position. We conducted organizational studies to fully understand the culture of the division and its leadership needs. We then customized a development plan for him based on the skills he would need as president. Based on our studies, we then took seventeen executives through a customized development process to access their leadership traits and capability to fill vacant positions. RHR continued to assess candidates and outside hires according to established benchmarks until all gaps were successfully filled.
“The new R&D executive became division president within one year. Impressed with the R&D succession planning program, the client asked us to undertake a similar initiative in their commercial division. An easily facilitated process for ongoing leadership continuity planning has been established.”
Did you know?
50% of companies say they do not perform effective executive succession planning
"The true measure of a successful CEO is what kind of company he leaves behind."
Quotable:
"We need to be proactive in our succession planning"
Ilene Gordon
President & CEO
Alcan Packaging
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