Leadership in Action - Issues and Observations - Finding Success at Succession

STICK WITH TRADITION

Many companies already have succession planning systems. It is likely that the core of most of these systems is a process of identifying potential or probable replacements for specific positions. This is called replacement planning.

It's certainly important to have an idea of who may be ready and able to move into a position if it becomes vacant—particularly at senior levels or in functions that have strategic significance. However, building a succession plan around the identification of potential replacements has critical limitations—especially if this is the sole or primary activity a company engages in while preparing for succession.

A replacement planning approach typically has the following steps:

• The top executive ...