Family Business Succession Planning Strategies

Family Business Succession Planning Strategies-64
Taken narrowly, "replacement planning" for key roles is the heart of succession planning.In contrast, replacement planning is focused narrowly on identifying specific back-up candidates for given senior management positions.

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The Cognitive Process Profile (CPP) psychometric is an example of a tool used in succession planning to measure candidates' ability to manage complexity according to Jaques' definition.

Companies struggle to find practices that are effective and practical.

It is clear that leaders who rely on instinct and gut to make promotion decisions are often not effective.

In a future that is increasingly hard to predict leaders will need to see opportunity in volatility, spot patterns in complexity, find creative solutions to problems, keep in mind long-term strategic goals for the organisation and wider society, and hold onto uncertainty until the optimum time to make a decision.

The survey also found that Small and medium-sized enterprises (SMEs) are not adequately prepared for their business succession: only 10% of owners have a formal, written succession plan; 38% have an informal, unwritten plan; and the remaining 52% do not have any succession plan at all.

A 2004 CIBC survey suggests that succession planning is increasingly becoming a critical issue.Elliott Jaques and others have argued for the importance of focusing assessments narrowly on critical differentiators of future performance.Jaques developed a persuasive case for measuring candidates' ability to manage complexity, formulating a robust operational definition of business intelligence.Professionals in the field, including academics, consultants and corporate practitioners, have many strongly-held views on the topic. There are many thought-pieces on the subject that readers may find valuable, such as "Debunking 10 Top Talent Management Myths", Talent Management Magazine, Doris Sims, December 2009. The Corporate Leadership Council, The Best Practice Institute (BPI) and the Center for Creative Leadership, as well as the Human Resources Planning Society, are sources of some effective research-based materials.Over the years, organizations have changed their approach to succession planning.Mahler was responsible in the 1970s for helping to shape the General Electric succession process which became the gold standard of corporate practice.Mahler, who was heavily influenced by Peter Drucker, wrote three other books on the subject of succession, all of which are out of print.Vacancies are anticipated and slates of names are prepared based on highest potential and readiness for job moves.Organization realignments are viewed as critical windows-of-opportunity to utilize development moves that will serve the greater good of the enterprise.A substantial body of literature discusses succession planning.The first book that addressed the topic fully was "Executive Continuity" by Walter Mahler.


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