Effective succession planning: ensuring leadership continuity and building talent from within

433 Pages·2005·1.62 MB·English

by  William J. Rothwell

E
FFECTIVE
S
UCCESSION
P
LANNING
THIRD EDITION
.................11138$ $$FM 04-21-0509:54:16 PS PAGEi
This page intentionally left blank
E
FFECTIVE
S
UCCESSION
P
LANNING
THIRD EDITION
Ensuring Leadership Continuity and
Building Talent from Within
William J. Rothwell
American ManagementAssociation
NewYork•Atlanta•Brussels•Chicago•MexicoCity•SanFrancisco
Shanghai•Tokyo•Toronto•Washington,D.C.
.................11138$ $$FM 04-21-0509:54:17 PS PAGEiii
SpecialdiscountsonbulkquantitiesofAMACOMbooksare
availabletocorporations,professionalassociations,andother
organizations.Fordetails,contactSpecialSalesDepartment,
AMACOM,adivisionofAmericanManagementAssociation,
1601Broadway,NewYork,NY10019.
Tel.:[phone]. Fax:[phone].
Website:www.amacombooks.org
Thispublicationisdesignedtoprovideaccurateandauthoritative
informationinregardtothesubjectmattercovered.Itissoldwith
theunderstandingthatthepublisherisnotengagedinrendering
legal,accounting,orotherprofessionalservice.Iflegaladviceor
otherexpertassistanceisrequired,theservicesofacompetent
professionalpersonshouldbesought.
LibraryofCongressCataloging-in-PublicationData
Rothwell,WilliamJ.
Effectivesuccessionplanning:ensuringleadershipcontinuityand
buildingtalentfromwithin/WilliamJ.Rothwell.—3rded.
p. cm.
Includesbibliographicalreferencesandindex.
ISBN0-8144-0842-7
1. Leadership. 2. Executivesuccession—UnitedStates. 3. Executive
ability. 4. Organizationaleffectiveness. I. Title.
HD57.7.R6892005
658.4(cid:2)092—dc22
2004024908
(cid:2)2005WilliamJ.Rothwell.
Allrightsreserved.
PrintedintheUnitedStatesofAmerica.
Thispublicationmaynotbereproduced,
storedinaretrievalsystem,
ortransmittedinwholeorinpart,
inanyformorbyanymeans,electronic,
mechanical,photocopying,recording,orotherwise,
withoutthepriorwrittenpermissionofAMACOM,
adivisionofAmericanManagementAssociation,
1601Broadway,NewYork,NY10019.
Printingnumber
10 9 8 7 6 5 4 3 2 1
.................11138$ $$FM 04-21-0509:54:17 PS PAGEiv
T M , C ,
OMYWIFE ARCELINA MYDAUGHTER ANDICE
F , A
MYSON ROILAN ANDMYGRANDSON DEN
.................11138$ $$FM 04-21-0509:54:17 PS PAGEv
This page intentionally left blank
CONTENTS
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
SixMinistudies:CanYouSolveTheseSuccessionProblems? 7
DefiningSuccessionPlanningandManagement 10
DistinguishingSuccessionPlanningandManagementfrom
ReplacementPlanning,WorkforcePlanning,TalentManagement,
andHumanCapitalManagement 16
MakingtheBusinessCaseforSuccessionPlanningandManagement 18
ReasonsforaSuccessionPlanningandManagementProgram 20
BestPracticesandApproaches 30
EnsuringLeadershipContinuityinOrganizations 35
Summary 39
CHAPTER 2
Trends Influencing Succession Planning and Management 41
TheTenKeyTrends 42
WhatDoesAllThisMeanforSuccessionPlanningandManagement? 54
Summary 55
vii
.................11138$ CNTS 04-21-0509:54:24 PS PAGEvii
viii CONTENTS
CHAPTER 3
Moving to a State-of-the-Art Approach 56
CharacteristicsofEffectivePrograms 56
TheLifeCycleofSuccessionPlanningandManagementPrograms:
FiveGenerations 59
IdentifyingandSolvingProblemswithVariousApproaches 69
IntegratingWholeSystemsTransformationalChangeand
AppreciativeInquiryintoSuccession:WhatAreThese Topics,
andWhatAddedValueDoTheyBring? 76
RequirementsforaFifth-GenerationApproach 78
KeyStepsinaFifth-GenerationApproach 78
Summary 81
CHAPTER 4
Competency Identification and Values Clarification:
Keys to Succession Planning and Management 82
WhatAreCompetencies? 82
HowAreCompetencies UsedinSuccessionPlanningand
Management? 83
ConductingCompetencyIdentificationStudies 84
UsingCompetency Models 85
NewDevelopmentsinCompetencyIdentification,Modeling,and
Assessment 85
IdentifyingandUsingGenericandCulture-SpecificCompetency
DevelopmentStrategiestoBuildBenchStrength 86
WhatAreValues,andWhatIsValuesClarification? 87
HowAreValuesUsedinSuccessionPlanningandManagement? 89
ConductingValuesClarificationStudies 90
UsingValuesClarification 91
BringingItAllTogether:Competencies andValues 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
AssessingCurrentProblemsandPractices 95
DemonstratingtheNeed 101
DeterminingOrganizationalRequirements 108
.................11138$ CNTS 04-21-0509:54:25 PS PAGEviii
Contents ix
LinkingSuccessionPlanningandManagement Activitiesto
OrganizationalandHumanResourceStrategy 108
BenchmarkingBestPracticesandCommonBusinessPracticesin
OtherOrganizations 113
ObtainingandBuildingManagementCommitment 114
TheKeyRole oftheCEOintheSuccessionEffort 120
Summary 124
CHAPTER 6
Starting a Systematic Program 125
ConductingaRiskAnalysisandBuildingaCommitmenttoChange 125
ClarifyingProgramRoles 126
FormulatingaMissionStatement 130
WritingPolicyandProcedures 136
IdentifyingTargetGroups 138
ClarifyingtheRolesoftheCEO, SeniorManagers,andOthers 142
SettingProgramPriorities 143
AddressingtheLegalFramework 145
EstablishingStrategiesforRollingOuttheProgram 147
Summary 155
CHAPTER 7
Refining the Program 156
PreparingaProgramActionPlan 156
CommunicatingtheActionPlan 157
ConductingSuccessionPlanningandManagementMeetings 160
TrainingonSuccessionPlanningandManagement 164
CounselingManagersAboutSuccessionPlanningProblemsinTheir
Areas 172
Summary 174
PART III
ASSESSING THE PRESENT AND THE FUTURE 177
CHAPTER 8
Assessing Present Work Requirements and Individual Job
Performance 179
IdentifyingKey Positions 180
ThreeApproachestoDeterminingWorkRequirementsinKey
Positions 184
UsingFull-Circle,MultiraterAssessments 189
.................11138$ CNTS 04-21-0509:54:25 PS PAGEix