William J. Rothwell - Effective Succession Planning (2005)(3-e)(en)

EFFECTIVE

SUCCESSION

PLANNING

T H I R D E D I T I O N

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EFFECTIVE

SUCCESSION

PLANNING

T H I R D E D I T I O N

Ensuring Leadership Continuity and

Building Talent from Within

William J. Rothwell

American Management Association

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Library of Congress Cataloging-in-Publication Data

Rothwell, William J.

Effective succession planning : ensuring leadership continuity and building talent from within / William J. Rothwell.— 3rd ed.

p. cm.

Includes bibliographical references and index. ISBN 0-8144-0842-7

1. Leadership. 2. Executive succession—United States. 3. Executive ability. 4. Organizational effectiveness. I. Title.

HD57.7.R689 2005 658.4 092—dc22

2004024908

2005 William J. Rothwell. All rights reserved.

Printed in the United States of America.

This publication may not be reproduced, stored in a retrieval system,

or transmitted in whole or in part,

in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019.

Printing number

10 9 8 7 6 5 4 3 2 1

TO MY WIFE MARCELINA, MY DAUGHTER CANDICE,

MY SON FROILAN, AND MY GRANDSON ADEN

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C O N T E N T S

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
C H A P T E R 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
C H A P T E R 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

vii

viii	CONT ENT S
C H A P T E R 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
C H A P T E R 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
C H A P T E R 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
C H A P T E R 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
C H A P T E R 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
C H A P T E R 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