Chapter 7: Succession Planning

Jack Welch Video:

-building the team; succession planning for CEO and other support personnel
-ask some others to move on to take other jobs
-3 people/candidates outperform anything
-a family with a talent and reputation
-integration of culture
-5-7 years
-hiring individuals, grooming them, taking on challenges and change the perspective
-decision making thru collaboration and identify their CEO

Replacement planning – key jobs in the org that we need to have a back-up for

Succession planning – strategy-focused; process of identifying potential individuals who can

take on the senior roles of the company
-identify long before or ahead of time

Small businesses have no succession plan because there is no HR person who will do it and it
takes a lot of their time.

Big companies need to have succession plan, medium companies should have it.

Transparency – being very transparent of how does one achieve or how does one get on this
role; be clear on how to identify the successor
Elitism – people who are liked by the senior management; they get all the best projects because
they are supported by the management

2 classes of employees:
1. the elite
2. others

As HR people, we don’t create the succession plan but help drive it.

Internal or external hiring/succession planning

Exercises:
1. Lee Ki Chung issue is replacement planning since it’s the key role/job.
2. President of Overseas Banking Corporation – multiple people/candidates; long-term
monitoring the successor’s lives/progress
3. Hi Tech Corp can have replacement planning by broadening their skillsets, greater autonomy
Succession Planning Steps (MIDTERM)
Succession plan- senior role
Replacement plan – jobs/key roles

1. Align succession management plans with strategy

-succession planning starts with strategy

2. Identify the skills and competencies needed to meet strategic objectives

-recognizing that competencies and skills to achieve strategy

3. Identify high-potential employees

-in business it is termed as high-flyers; through performance management, or what they do to
the business

4. Provide developmental opportunities and experiences

-opportunities to demonstrate their capabilities

5. Monitor succession management

-identify the indicators that the plan is on track
-HR metrics for succession management
-keep skills current and meaningful to the organization
-increase in engagement scores
-increase positive perceptions of development opportunities

Coaching vs mentoring
Coaching – guide them to solve a problem
Mentoring – developing for the future, inspiring people to the success that you have

Midterm Exam
Chapters 1,2,3,4 & 5 (only in MCQs do u understand the techniques, could u define it),6
Part A: 50 MCQs
Part B: 3 out 4 short answer questions Chapter 1,2,3,6; each question 5 marks, very specific
Identify and explain (5 concise points) – keep it simple and short, use specific terminology, in
order
1.5 hours
Opens at 9AM