CONTENTS
17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67
68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84
85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101
102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118
119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135
136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152
153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169
170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186
187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203
204 205 206 207 208 209 210 211 212 213 214 215
List of Exhibits xiii
Preface to the Third Edition xvii
Acknowledgments xxxi
Advance Organizer for This Book 1
PART I
BACKGROUND INFORMATION ABOUT SUCCESSION
PLANNING AND MANAGEMENT 5
CHAPTER 1
What Is Succession Planning and Management? 7
Six Ministudies: Can You Solve These Succession Problems? 7
Defining Succession Planning and Management 10
Distinguishing Succession Planning and Management from
Replacement Planning, Workforce Planning, Talent Management,
and Human Capital Management 16
Making the Business Case for Succession Planning and Management 18
Reasons for a Succession Planning and Management Program 20
Best Practices and Approaches 30
Ensuring Leadership Continuity in Organizations 35
Summary 39
CHAPTER 2
Trends Influencing Succession Planning and Management 41
The Ten Key Trends 42
What Does All This Mean for Succession Planning and Management? 54
Summary 55
CHAPTER 3
Moving to a State-of-the-Art Approach 56
Characteristics of Effective Programs 56
The Life Cycle of Succession Planning and Management Programs:
Five Generations 59
Identifying and Solving Problems with Various Approaches 69
Integrating Whole Systems Transformational Change and
Appreciative Inquiry into Succession: What Are These Topics,
and What Added Value Do They Bring? 76
Requirements for a Fifth-Generation Approach 78
Key Steps in a Fifth-Generation Approach 78
Summary 81
CHAPTER 4
Competency Identification and Values Clarification:
Keys to Succession Planning and Management 82
What Are Competencies? 82
How Are Competencies Used in Succession Planning and
Management? 83
Conducting Competency Identification Studies 84
Using Competency Models 85
New Developments in Competency Identification, Modeling, and
Assessment 85
Identifying and Using Generic and Culture-Specific Competency
Development Strategies to Build Bench Strength 86
What Are Values, and What Is Values Clarification? 87
How Are Values Used in Succession Planning and Management? 89
Conducting Values Clarification Studies 90
Using Values Clarification 91
Bringing It All Together: Competencies and Values 91
Summary 91
PART II
LAYING THE FOUNDATION FOR A SUCCESSION
PLANNING AND MANAGEMENT PROGRAM 93
CHAPTER 5
Making the Case for Major Change 95
Assessing Current Problems and Practices 95
Demonstrating the Need 101
Determining Organizational Requirements 108
Contents ix
Linking Succession Planning and Management Activities to
Organizational and Human Resource Strategy 108
Benchmarking Best Practices and Common Business Practices in
Other Organizations 113
Obtaining and Building Management Commitment 114
The Key Role of the CEO in the Succession Effort 120
Summary 124
CHAPTER 6
Starting a Systematic Program 125
Conducting a Risk Analysis and Building a Commitment to Change 125
Clarifying Program Roles 126
Formulating a Mission Statement 130
Writing Policy and Procedures 136
Identifying Target Groups 138
Clarifying the Roles of the CEO, Senior Managers, and Others 142
Setting Program Priorities 143
Addressing the Legal Framework 145
Establishing Strategies for Rolling Out the Program 147
Summary 155
CHAPTER 7
Refining the Program 156
Preparing a Program Action Plan 156
Communicating the Action Plan 157
Conducting Succession Planning and Management Meetings 160
Training on Succession Planning and Management 164
Counseling Managers About Succession Planning Problems in Their
Areas 172
Summary 174
PART III
ASSESSING THE PRESENT AND THE FUTURE 177
CHAPTER 8
Assessing Present Work Requirements and Individual Job
Performance 179
Identifying Key Positions 180
Three Approaches to Determining Work Requirements in Key
Positions 184
Using Full-Circle, Multirater Assessments 189
Appraising Performance and Applying Performance Management 192
Creating Talent Pools: Techniques and Approaches 195
Thinking Beyond Talent Pools 200
Summary 202
CHAPTER 9
Assessing Future Work Requirements and Individual
Potential 203
Identifying Key Positions and Talent Requirements for the Future 203
Assessing Individual Potential: The Traditional Approach 210
The Growing Use of Assessment Centers and Portfolios 221
Summary 224
PART IV
CLOSING THE ‘‘DEVELOPMENTAL GAP’’: OPERATING
AND EVALUATING A SUCCESSION PLANNING AND
MANAGEMENT PROGRAM 225
CHAPTER 10
Developing Internal Successors 227
Testing Bench Strength 227
Formulating Internal Promotion Policy 232
Preparing Individual Development Plans 235
Developing Successors Internally 242
The Role of Leadership Development Programs 251
The Role of Coaching 252
The Role of Executive Coaching 253
The Role of Mentoring 253
The Role of Action Learning 255
Summary 256
CHAPTER 11
Assessing Alternatives to Internal Development 257
The Need to Manage for ‘‘Getting the Work Done’’ Rather than
‘‘Managing Succession’’ 257
Innovative Approaches to Tapping the Retiree Base 266
Deciding What to Do 268
Summary 270
CHAPTER 12
Using Technology to Support Succession Planning and
Management Programs 271
Defining Online and High-Tech Methods 271
Contents xi
Where to Apply Technology Methods 276
How to Evaluate and Use Technology Applications 276
What Specialized Competencies Do Succession Planning and
Management Coordinators Need to Use These Applications? 289
Summary 290
CHAPTER 13
Evaluating Succession Planning and Management
Programs 291
What Is Evaluation? 291
What Should Be Evaluated? 292
How Should Evaluation Be Conducted? 295
Summary 306
CHAPTER 14
The Future of Succession Planning and Management 307
The Fifteen Predictions 308
Summary 329
APPENDIX I :
Frequently Asked Questions (FAQs) About Succession
Planning and Management 331
APPENDIX I I :
Case Studies on Succession Planning and Management 337
Case 1: How Business Plans for Succession 337
Case 2: How Government Plans for Succession 341
Case 3: How a Nonprofit Organization Plans for Succession 354
Case 4: Small Business Case 360
Case 5: Family Business Succession 362
Case 6: CEO Succession Planning Case 363
Notes 367
What’s on the CD? 387
Index 391
About the Author 399
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L I S T OF EXHIBITS
Exhibit P-1. Age Distribution of the U.S. Population, Selected Years,
1965–2025 xx
Exhibit P-2. U.S. Population by Age, 1965–2025 xxi
Exhibit P-3. The Organization of the Book xxv
Exhibit 1-1. How General Electric Planned the Succession 11
Exhibit 1-2. The Big Mac Succession 14
Exhibit 1-3. Demographic Information About Respondents to a 2004 Survey
on Succession Planning and Management: Industries 21
Exhibit 1-4. Demographic Information About Respondents to a 2004 Survey
on Succession Planning and Management: Size 21
Exhibit 1-5. Demographic Information About Respondents to a 2004 Survey
on Succession Planning and Management: Job Functions of
Respondents 22
Exhibit 1-6. Reasons for Succession Planning and Management Programs 23
Exhibit 1-7. Strategies for Reducing Turnover and Increasing Retention 26
Exhibit 1-8. Workforce Reductions Among Survey Respondents 29
Exhibit 1-9. A Summary of Best Practices on Succession Planning and
Management from Several Research Studies 31
Exhibit 2-1. An Assessment Questionnaire: How Well Is Your Organization
Managing the Consequences of Trends Influencing Succession
Planning and Management? 43
Exhibit 2-2. The Sarbanes-Oxley Act of 2002 49
Exhibit 3-1. Characteristics of Effective Succession Planning and
Management Programs 60
Exhibit 3-2. Assessment Questionnaire for Effective Succession Planning
and Management 64
Exhibit 3-3. A Simple Exercise to Dramatize the Need for Succession
Planning and Management 67
Exhibit 3-4. The Dow Chemical Company’s Formula for Succession 70
Exhibit 3-5. Chief Difficulties with Succession Planning and Management
Programs 72
Exhibit 3-6. The Seven-Pointed Star Model for Systematic Succession
Planning and Management 79
Exhibit 4-1. An Interview Guide to Collect Corporate-Culture-Specific
Competency Development Strategies 88
Exhibit 5-1. Strategies for Handling Resistance to Implementing Succession
Planning and Management 97
Exhibit 5-2. The Importance of Succession Planning and Management 98
Exhibit 5-3. Making Decisions About Successors (in Organizations Without
Systematic Succession Planning and Management) 99
Exhibit 5-4. A Questionnaire for Assessing the Status of Succession Planning
and Management in an Organization 102
Exhibit 5-5. A Worksheet for Demonstrating the Need for Succession
Planning and Management 106
Exhibit 5-6. An Interview Guide for Determining the Requirements for a
Succession Planning and Management Program 109
Exhibit 5-7. An Interview Guide for Benchmarking Succession Planning and
Management Practices 115
Exhibit 5-8. Opinions of Top Managers About Succession Planning and
Management 118
Exhibit 5-9. Opinions of Human Resource Professionals About Succession
Planning and Management 119
Exhibit 5-10. Actions to Build Management Commitment to Succession
Planning and Management 121
Exhibit 5-11. Rating Your CEO for His/Her Role in Succession Planning and
Management 123
Exhibit 6-1. A Model for Conceptualizing Role Theory 127
Exhibit 6-2. Management Roles in Succession Planning and Management:
A Grid 129
Exhibit 6-3. A Worksheet to Formulate a Mission Statement for Succession
Planning and Management 133
Exhibit 6-4. A Sample Succession Planning and Management Policy 137
Exhibit 6-5. Targeted Groups for Succession Planning and Management 139
Exhibit 6-6. An Activity for Identifying Initial Targets for Succession
Planning and Management Activities 140
Exhibit 6-7. An Activity for Establishing Program Priorities in Succession
Planning and Management 146
Exhibit 6-8. U.S. Labor Laws 148
Exhibit 7-1. A Worksheet for Preparing an Action Plan to Establish the
Succession Planning and Management Program 158
Exhibit 7-2. Sample Outlines for In-House Training on Succession Planning
and Management 168
Exhibit 8-1. A Worksheet for Writing a Key Position Description 186
List of Exhibits xv
Exhibit 8-2. A Worksheet for Considering Key Issues in Full-Circle,
Multirater Assessments 191
Exhibit 8-3. The Relationship Between Performance Management and
Performance Appraisal 194
Exhibit 8-4. Approaches to Conducting Employee Performance Appraisal 197
Exhibit 8-5. A Worksheet for Developing an Employee Performance
Appraisal Linked to a Position Description 199
Exhibit 9-1. A Worksheet for Environmental Scanning 205
Exhibit 9-2. An Activity on Organizational Analysis 206
Exhibit 9-3. An Activity for Preparing Realistic Scenarios to Identify Future
Key Positions 208
Exhibit 9-4. An Activity for Preparing Future-Oriented Key Position
Descriptions 209
Exhibit 9-5. Steps in Conducting Future-Oriented ‘‘Rapid Results
Assessment’’ 211
Exhibit 9-6. How to Classify Individuals by Performance and Potential 214
Exhibit 9-7. A Worksheet for Making Global Assessments 216
Exhibit 9-8. A Worksheet to Identify Success Factors 217
Exhibit 9-9. An Individual Potential Assessment Form 218
Exhibit 10-1. A Sample Replacement Chart Format: Typical Succession
Planning and Management Inventory for the Organization 229
Exhibit 10-2. Succession Planning and Management Inventory by Position 230
Exhibit 10-3. Talent Shows: What Happens? 233
Exhibit 10-4. A Simplified Model of Steps in Preparing Individual
Development Plans (IDPs) 237
Exhibit 10-5. A Worksheet for Preparing Learning Objectives Based on
Individual Development Needs 239
Exhibit 10-6. A Worksheet for Identifying the Resources Necessary to
Support Developmental Experiences 241
Exhibit 10-7. A Sample Individual Development Plan 243
Exhibit 10-8. Methods of Grooming Individuals for Advancement 245
Exhibit 10-9. Key Strategies for Internal Development 247
Exhibit 11-1. Deciding When Replacing a Key Job Incumbent Is Unnecessary:
A Flowchart 259
Exhibit 11-2. A Worksheet for Identifying Alternatives to the Traditional
Approach to Succession Planning and Management 267
Exhibit 11-3. A Tool for Contemplating Ten Ways to Tap the Retiree Base 269
Exhibit 12-1. Continua of Online and High-Tech Approaches 272
Exhibit 12-2. A Starting Point for a Rating Sheet to Assess Vendors for
Succession Planning and Management Software 273
Exhibit 12-3. A Hierarchy of Online and High-Tech Applications for
Succession Planning and Management 277
Exhibit 12-4. A Worksheet for Brainstorming When and How to Use Online
and High-Tech Methods 280
Exhibit 13-1. The Hierarchy of Succession Planning and Management
Evaluation 294
Exhibit 13-2. Guidelines for Evaluating the Succession Planning and
Management Program 296
Exhibit 13-3. A Worksheet for Identifying Appropriate Ways to Evaluate
Succession Planning and Management in an Organization 298
Exhibit 13-4. A Sample ‘‘Incident Report’’ for Succession Planning and
Management 299
Exhibit 13-5. Steps for Completing a Program Evaluation of a Succession
Planning and Management Program 301
Exhibit 13-6. A Checksheet for Conducting a Program Evaluation for the
Succession Planning and Management Program 303
Exhibit 14-1. A Worksheet to Structure Your Thinking About Predictions for
Succession Planning and Management in the Future 309
Exhibit 14-2. A Worksheet to Structure Your Thinking About Alternative
Approaches to Meeting Succession Needs 314
Exhibit 14-3. Age Distribution of the U.S. Population in 2025 317
Exhibit 14-4. Age Distribution of the Chinese Population in 2025 318
Exhibit 14-5. Age Distribution of the Population in the United Kingdom
in 2025 318
Exhibit 14-6. Age Distribution of the French Population in 2025 319
Exhibit 14-7. Important Characteristics of Career Planning and Management
Programs 323
Exhibit 14-8. An Assessment Sheet for Integrating Career Planning and
Management Programs with Succession Planning and
Management Programs 325