RESEARCH AND PRACTICE

IN HUMAN RESOURCE MANAGEMENT

Taylor, T. & Bennett, A. (2002). Strategic Development of Organisational Talent: Te !se of S"ccession
#anagement Approaces, Research and Practice in Human Resource Management, $0(2), %&'&(.
Strategic Development of Organisational Talent
T!e Use of S"ccession Management Approac!es
Tracy Taylor & A)rienne Bennett
A#stract
Global demographic data unequivocally indicate that a large proportion of workers will be
entering retirement in the next 5 10 years, resulting in intensified competition for new
employees and increasing imperatives to retain good staff !his paper discusses the use of
succession management approaches in the strategic development of an organisation"s high
potential and talented employees #hile succession planning has been used in human resources
management for many years, it has been claimed that succession management is significantly
different from its older variation and better attuned to contemporary business environments
$%yham, &mith ' (aese, )001* +eibman, %ruer ' ,aki, 1--.* /othwell, )0000 !he distinctions
between these two approaches are discussed and the key components of succession management
outlined 1 comprehensive succession management programme in a large 1ustralian organisation
is presented as a case study !he evaluation of this succession management programme provides a
measure of its impact on the promotion and retention of high potential staff as well as calculating
the return on the organisation"s investment 2n this instance succession management has provided
the implementing organisation with a systematic and transparent process for successfully
identifying, developing and promoting high potential employees and is an example of best practice
in succession management
Strategic $evelopment of organisational talent T!e "se of
s"ccession management approac!es
Te prospect of a si*ea+le proportion of senior management )epart"res in te ne,t tree to five years as
igligte) a ma-or +"siness callenge, an) many organisations are t"rning to s"ccession management approaces
as a strategic "man reso"rce management response to tis sit"ation (Berntal, .io", & /ellins, $(((0 1"ilfor),
2000). 2o"ple) 3it te )epart"re of one generation of managers is "ncertainty a+o"t o3 to ens"re te retention
of goo) staff from te ne,t generation. 4. #aga*ine ($((() as estimate) tat te n"m+er of 5%'6% year ol)s in te
!nite) States c"rrently in te early stages of teir careers is pro-ecte) to )ecline +y $% percent in te ne,t $% years,
tere+y s"+stantially re)"cing te talent pool from 3ic ne3 lea)ers 3ill emerge. Te pro+lem 3ill +e magnifie)
as te n"m+er of 2%'56 year ol)s contin"es to )ecline over te ne,t )eca)e, te pre)icte) lea)ersip gaps 3i)ens
an) organisations see7 to fin) ne3 lea)ers in an increasingly tigt mar7etplace. A))itionally, it as +een reporte)
tat in 2000 te typical American 3or7er a) el) nine -o+s +efore reacing age 52 (Do++s, 200$).
8n A"stralia, it as +een forecast tat a large percentage of te 3or7force 3ill retire in te ne,t % to $0 years, an)
la+o"r force participation is pro-ecte) to )ecline to &0.& per cent, 3it te rates for men to )ecline in every age
gro"p e,cept tose age) &0 an) over0 an) te participation rate of 3omen pro-ecte) to rise in every age gro"p
e,cept $%'$( year ol)s an) tose age) over &% (A"stralian B"rea" of Statistics, $(((). 2"rrently in A"stralia te
average age of retirement as )roppe) to 69 years of age (A"stralian B"rea" of Statistics, $((:).
As organisations strive to implement systems tat a))ress tese c"rrent an) pre)icte) ig levels of management
attrition an) t"rnover rates, s"ccession management programmes are receiving increasing attention (Bar"c, $(((0
;ie+man, Br"er & #a7i, $((&0 S"llivan, 2000). 8n an attempt to strategically a))ress tis sit"ation many
organisations ave starte) to internally target an) )evelop talente) staff "sing criteria tat are lin7e) to f"t"re
organisational nee)s an) role capa+ilities (Byam, <elson & =aese, 2000). 8n oter 3or)s, s"ccession management
approaces are +eing "se) to facilitate effective organisational positioning an) )evelopment to ens"re tat 3itin
an organisation te >rigt? lea)ers are availa+le at te >rigt? time (.ot3ell, 2000).
Tis paper +egins 3it an overvie3 of te components of s"ccession management an) a )isc"ssion of its )ivergence
from s"ccession planning. Te 7ey elements of effective s"ccession management are o"tline) along 3it mo)els of
implementation. Te ne,"s of teory an) practice is ten ill"strate) tro"g presentation of a case st")y o"tlining
te implementation an) eval"ation of a s"ccession management programme in a large A"stralian p"+lic sector
organisation. @ir7patric7?s meto)ological frame3or7 (.ot3ell, $((6) 3as "se) to assess te effectiveness of tis
s"ccession management programme. Te programme o"tcomes are also analyse) in accor)ance 3it literat"re
+ase) claims a+o"t te +enefits associate) 3it s"ccession management approaces. Te p"rpose of te paper is to
igligt o3 s"ccession management can +e integrate) into "man reso"rce management practices an) +e tie) to
employee training, )evelopment, an) learning o"tcomes.
S"ccession planning vers"s s"ccession management
8n te past a common meto) "se) to )etermine li7ely replacements for senior managers 3as referre) to as
s"ccession planning. Te term referre) to a systematic an) regimente) system of i)entifying -o+ position
replacement, +est "se) in relatively sta+le 3or7 environments. 8t relie) eavily on performance management )ata
an) recommen)ations of 7ey )ecision ma7ers 3itin te organisation (.io", & Berntal, $(((). Te s"ccession
process 3as often )eci)e) an) implemente) in e,ec"tive s"ites, +ein) close) )oors, an) s"rro"n)e) +y an air of
secrecy. =romotion e,pectations 3ere not al3ays ma)e clear an) teir meas"rement co"l) +e igly am+ig"o"s
(;ie+man et al., $((&). #any organisations perceive) s"ccession planning as c"m+ersome, an) neiter effective in
te retention of talente) staff nor in te replacement of )eparting senior management (Byam et al., 200$).
8t as +een propose) tat s"ccession management emerge) from fr"stration 3it s"ccession planning, as te latter
3as not a+le to effectively respon) to organisational restr"ct"res, team +ase) 3or7 systems, )iversity iss"es, glo+al
o"tso"rcing, or talent sortages (Bar"c, $(((0 Byam et al., 200$0 #et*, $((9). S"ccession management 3as
form"late) as a f"n)amentally an) pilosopically )istinct co"rse of action from s"ccession planning. S"ccession
management is a process tat is "se) in te i)entification an) )evelopment of ig potential an) talente) staff in
te searc for an effective 3ay to )eal 3it te canging 3or7 environments of contemporary corporations. 8)eally,
it is a transparent approac tat is em+e))e) in organisational )ecision'ma7ing an) actively s"pporte) +y all levels
of management. S"ccession management incorporates a +roa)er range of stan)ar)ise) performance eval"ation
meto)s an) involves gatering information on employee performance from m"ltiple perspectives. 8t is toro"g,
an) s"pplements s"+-ective -")gements of potential 3it in)epen)ent o+-ective assessment )ata relate) to 7ey
capa+ilities. Te process involves te )etermination of reA"ire) organisational capa+ilities, assessment an)
)eveloping planning an) programme eval"ation. Bac of tese steps 3ill +e )isc"sse) in more )etail later in te
paper.
8n a clear cange from s"ccession planning tecniA"es, s"ccession management practices foc"s on i)entifying an)
)eveloping lea)ersip capa+ilities, not specific -o+ reA"irements. Tere appears to +e consens"s in te literat"re
tat a 3ell )esigne) an) operate) s"ccession management process can )eal 3it )ynamic 3or7 environments, as it
can +e contin"ally realigne) to reflect c"rrent organisational +"siness strategies an) vision (;ei+man et al., $((&0
.io", & Berntal, $(((0 .ot3ell, 2000). Te )ynamic 3or7 environment to +e serve) +y s"ccession management
incl")es corporate )o3nsi*ing, reengineering, )ecimate) organisational levels, an) +roa)ene) spans of managerial
controls (1rossman, $(((). Tese processes are also inten)e) to +e more incl"sive 3it respect to )iversity aspects
(2a")ron, $((&0 /all"m, $((5).
8n teory, s"ccession management processes are more o+-ective tan past meto)s of s"ccession planning an) are
)esigne) to re)ress perceptions of internal favo"ritism an) >mirror? or >alo? effect )ecisions. 8t as also +een
s"ggeste) tat )iversity iss"es are +etter accommo)ate) in s"ccession management an) tat minority gro"p?s
+enefit from its more o+-ective implementation mo)el (;in7age & 4o3ar) 8nc., $(((). S"ccession management
efforts are most li7ely to +e s"ccessf"l if tey are em+e))e) in management operations an) involve 4. an) oter
managers tro"go"t te organisation (;in7age 8nc., $(((0 /al7er, $((9) an) are concerne) 3it implications for
oter career planning practices s"c as formal e)"cation training or secon)ments (Bar"c, $((().
/ile s"ccession management 3as initially conceive) as an initiative mainly for te top ecelon of +"siness o3ners
an) managers in large companies it is no3 )eeme) as eA"ally relevant for small an) mi) si*e employers an) family
r"n +"sinesses (.an)all, $((&). D"e in large part to pro-ecte) talent sortages an) rising recr"itment costs, not
aving a s"ccession management process as even +een seen as +or)ering on negligence (1rossman, $((().
S"ccession management is no longer merely a+o"t replacement iss"es, +"t rater it is a strategic responsi+ility to
+e sare) among te organisation?s sta7eol)ers (Soall, $((:). ;ei+man, Br"er an) #a7i ($((&) ave a))e) tat
te increasing )iversity of 3or7force an) social e,pectations 3ill force organisations to retin7 lea)ersip
)evelopment efforts an) implement more o+-ective an) incl"sionary talent i)entification programmes. Tis
potentially presents an enormo"s opport"nity for organisations via e,pan)e) 3or7 pools an) increase) )iversity of
i)eas an) val"es tat co"l) +e a))resse) "sing s"ccession management approaces (Bastman, $((%). Teoretically,
s"staining innovation in organisations an) respon)ing to f"t"re organisational lea)ersip nee)s so"l) +e
em+e))e) in s"ccession management mo)els. /ile s"ccession management is t"s essentially a very )ifferent
meto) from s"ccession planning, in m"c of te practitioner'+ase) literat"re te terms are "se) intercangea+ly
(Bastman, $((%).
S"ccession Management Components
8n practical terms, s"ccession management programmes can +e locate) any3ere along a contin""m of application.
At te top'en) are processes aime) solely at 2BO replacement, >te process 3ic plans an organisation?s
transference of "ltimate e,ec"tive a"tority form one to anoter an) te o"tcome 3ic implements te processC
(Santora, 2lemens & Sarros, $((:: $0(). At te oter en) of te contin""m s"ccession management programmes
e,pansively encompass lea)ersip )evelopment at all levels 3itin an organisation. Tat is, Dany effort )esigne) to
ens"re te contin"e) effective performance of an organisation, )ivision, )epartment or 3or7 gro"p +y ma7ing
provision for te )evelopment an) replacement of 7ey people over timeC (.ot3ell, $((6: %). Te processes for +ot
te top'en) only an) top to +ottom en) approac are te same, it is only te scope tat varies.
.egar)less of te partic"lar organisation?s location on te contin""m, te )evelopmental foc"s of s"ccession
management is a consistent component. Tis foc"s involves te process of creating a clear pict"re of e,isting
"man reso"rce strengts, relating tem to anticipate) nee)s an) i)entifying areas reA"iring action (2ornerstone
2ons"lting, $(((). S"ccession management is also vie3e) as a )ynamic, on'going process of systematically
i)entifying, assessing an) )eveloping lea)ersip talents for f"t"re strategic tas7s (4ag+erg 2ons"lting 1ro"p,
$(((). 1iven tis set of attri+"tes, /al7er ($((9) as propose) tat s"ccession management migt +e +etter terme)
>e,ec"tive reso"rce planning? or >lea)ersip )ept ass"rance? to reflect its primary foc"s of )eveloping staff
capa+ilities. Byam, Smit an) =aese, (200$) ave a))e) tat te 7ey to a s"ccessf"l s"ccession management
sceme is perio)ic re'eval"ation along 3it +"y'in an) involvement of c"rrent e,ec"tives.
/ile te components of an organisation?s s"ccession management programme can vary as m"c as its scope of
application, tere are several critical elements tat ave +een i)entifie) as 7ey to effective s"ccession management.
Bastman ($((%) as offere) te follo3ing list of commonly reporte) effective practices:
.eceives visi+le s"pport from te 2BO an) Top #anagement0
8s o3ne) +y line management an) s"pporte) +y staff0
8s simple an) tailore) to "niA"e organisational nee)s0
8s fle,i+le an) lin7e) 3it te strategic +"siness plan0
Bvolves from a toro"g "man reso"rces revie3 process0
8s +ase) "pon 3ell')evelope) competencies an) o+-ective of can)i)ates0
8ncorporates employee inp"t0
8s part of te +roa)er management )evelopment effort0
8ncl")es plans for )evelopment -o+ assignments0
8s integrate) 3it oter "man reso"rce systems0 an)
Bmpasises acco"nta+ility an) follo3'"p.
Tese items are s"pporte) +y international researc fin)ings (="rcell, $((%0 .io", & Berntal, $(((0 Tyson, $((:).
St")ies ave in)icate) tat igly effective s"ccession management systems involve te 2BO, ave te s"pport of
senior management, involve line management i)entifying can)i)ates, "se )evelopmental assignment, an) lin7
s"ccession management plans to +"siness strategies (1"inn, $((:). Development of lea)ers as also +een lin7e) to
s"ccession management systems 3ic clearly esta+lis competencies, are transparent in selection process, provi)e
)evelopment opport"nities an) assesses tese, provi)e g"i)ance an) fee)+ac7 an) align 3it a re3ar) str"ct"re
(Byam, Smit & =aese, 200$0 ;ei+man, Br"er & #a7i, $((&). 8n te case of 1eneral Blectric?s programme, it as
+een reporte) tat te organisation as ens"re) contin"e) lea)ersip )evelopment tro"g a s"ccession
management process tat covers employees )"ring critical career milestone points to prepare tem for ne3
lea)ersip callenges (;in7age 8nc. & !niversity of #icigan, 2000).
8t is s"ggeste) tat many organisations "n)er'perform in s"ccession management +eca"se it is a comple, process
an) not easily implemente). ;ie+man, Br"er an) #a7i ($((&) propose) tat pro+lems associate) 3it s"ccession
management can incl")e:
Te rel"ctance of managers to release top talent for )evelopment
Te selection of potential lea)ers in Done?s o3n imageC
;ac7 of vali) an) o+-ective selection process
;imite) D+"y inC +y +"siness "nit e,ec"tives 3o )o not see significant +enefits from an essentially
corporate initiative
Disappointment of internal ig flyers 3en an e,ternal person is recr"ite)
4. )epartment cre)i+ility can +e pro+lematic 3en s"ccession management is seen as te "man reso"rce
area )riving a programme no one 3ants0 an)
An ins"fficient attention to foc"sse) an) +roa) )evelopment strategies.
8n partic"lar, e,isting st")ies ave reveale) tat te management style of te 2BO can +e an in)icator of isEer
attit")e to s"ccession an) te cances of s"ccess or fail"re of s"ccession management 3itin an organisation
(Scall, $((%0 Sonnenfel), $((:). Also, te composition of company +oar)s as +een fo"n) to impact s"ccession
processes. For e,ample, Boe7er an) 1oo)stein?s ($((5) longit")inal st")y spanne) 22 years an) 25$ s"ccession
events an) reveale) tat te greater te proportion of insi)ers on te +oar)s, an) te greater te concentration of
o3nersip among +oar) insi)ers, te more li7ely it 3as tat an insi)er 3o"l) +e selecte). 4am+ric7, 1elet7anyc*
an) Fe)eric7son ($((5) fo"n) tat tere 3as a strong ten)ency for lea)ers to try an) clone temselves, 3ic
infl"ence) s"ccession )ecisions. Anec)otal learning 3o"l) also in)icate tat te i)entification an) )evelopment of
a pool of talente) employees can ave a )eleterio"s effect on te morale of tose o"tsi)e te selecte) gro"p an) can
also lea) to e,pectations of fast trac7ing tat organisations may not +e a+le to f"lfil. Tis latter iss"e is partic"larly
relevant to te p"+lic sector 3ere te c"rrent interpretations of merit selection an) organisation str"ct"re may
re)"ce timeliness an) fle,i+ility in capitalising on )evelope) talent (<ational Aca)emy of ="+lic A)ministration,
$((:).
Mo$els of s"ccession management
.ot3ell ($((6) as s"ggeste) tat te )irection, timing, planning, scope, )egree of )issemination an) amo"nt of
in)ivi)"al )iscretion, )isting"is approaces to s"ccession management. As previo"sly )isc"sse), tere is a range
of mo)els for s"ccession management an) a contin""m of implementation processes, )epen)ing on te in)ivi)"al
organisation?s interpretation of te +rea)t of application of s"ccession management. At its narro3est, te process
3o"l) apply solely to te searc for a ne3 2BO, an) at its +roa)est it 3o"l) +e f"lly integrate) 3it te
organisation?s entire staff recr"itment, selection, training, )evelopment an) promotion etos. .egar)less of scope,
te first steps in )eveloping an effective system of s"ccession management ave +een i)entifie) as te
)etermination of te reA"ire) capa+ilities for staff mem+ers, te assessment of c"rrent capa+ilities, an) te
esta+lisment of a )evelopment plan for e,isting staff (/estern A"stralia #inistry of te =remier an) 2a+inet,
$((().
Determining capa#ilities
Te selection of 7ey capa+ilities (or competencies) nee)e) for s"ccess is often te first step in p"tting togeter a
s"ccession management plan. Tis +egins 3it te analysis of te organisation?s strategic plan an) allie)
)oc"ments to )etermine +eavio"rs necessary to acieve te organisation?s goals. A range of meto)s is "se) to
gater te information for tis stage, an) capa+ilities are vali)ate) "sing tecniA"es s"c as:
Gisioning
2ritical inci)ent i)entification
8ntervie3s 3it targete) ig performing staff
B,perts in eac )omain
!nion involvement (3ere reA"ire))
2apa+ilities are not meant to +e static an) so"l) +e ro"tinely revie3e), partic"larly if tere is a cange in +"siness
strategy or organisational str"ct"re. Te i)entification an) )evelopment of internal talent aims to foster a iger
level of contin"ity of management. 4aving some pre i)entifie) management capa+ilities an) personnel assesse)
against tese criteria can assist an organisation to meet +ot long term an) imme)iate managerial nee)s. /it
s"pportive "man reso"rces systems in place, )ecision ma7ers 3ill ave access to more an) +etter )ata on an
internal can)i)ate?s performance tan on o"tsi)e can)i)ates.
Assessment an$ Development Planning
Follo3ing te esta+lisment of capa+ilities, i)entifie) employees are ten assesse) against tese capa+ilities.
Assessment tecniA"es can involve te "se of performance appraisal )ata, m"lti rater fee)+ac7 instr"ments,
personality an) psycological testing, analysis of 3or7 samples, sim"lations an) role'plays. Te coice of
assessment 3ill vary +et3een organisations, +"t it is recommen)e) tat assessments are vali)ate) an) transparent.
After teir assessment, participants are informe) of teir res"lts incl")ing strengts an) )evelopment
opport"nities. Development programmes tat target te participant?s areas for improvement are ten )evise).
Tese can incl")e in'o"se training, formal e)"cation, -o+ assignments, pro-ect +ase) 3or7 an) coacing. Te
process so"l) aim to foster contin"o"s learning for all participants (#et*, $((9).
Te esta+lisment of an acceleration pool for nominate) participants is a feat"re of some s"ccession management
scemes. 8n an acceleration pool system, ig potential can)i)ates are i)entifie) an) given training, coacing, an)
a 3i)e range of professional e,perience 3itin te organisation (Byam, =aese & <elson, 2000). Tis i)entification
an) )evelopment of a pool of ig potential employees mar7s anoter )istinct cange from earlier s"ccession
planning approaces. ;arge organisations migt ave more tan one acceleration pool tat co"l) incl")e a pool for
s"pervisory level participants, one at mi))le management, an) one for senior levels. Bac pool, 3ic migt
encompass one or t3o organisational levels, 3o"l) prepare people for te ne,t ma-or step in te organisation. Te
si*e of a pool 3ill )epen) on te n"m+er of positions it is e,pecte) to s"pply an) te selection ratio tat te
organisation 3o"l) li7e to ave in filling target positions. Te n"m+er of acceleration pools reflects o3 an
organisation is str"ct"re), as 3ell as o3 it tin7s a+o"t its ig potential an) talente) employees. Organisations
may incorporate formal mentoring or coacing programmes for employees into acceleration poois.
A recent BennisE;in7age s"rvey ($((() of %000 ig performance organisations in te !nite) States, i)entifie)
>e,pos"re to senior e,ec"tives? as te most critical programme for accelerating te )evelopment of ig potential
employees. 2ommon practices incl")e te acceleration tro"g rapi), s"ccessive f"nctional assignments, tailoring
assignments to matc in)ivi)"al nee)s, c"stomi*ing management e)"cation, training an) recr"iting talent +elo3
te level nee)e) to >mat"re? in 2'% years time (4am+ric7, 1elet7anyc* & Fre)eric7son $((5).
Researc! St"$%
Bstimates of te proportion of +"sinesses 3it a formal s"ccession management process in place range) from $0
percent to $% percent (1"ilfor), 2000) ' a A"arter of !.S. organisations. 8n a s"rvey of $( companies in te !nite)
@ing)om ($5 in te top !@ D$00C), $% reporte) tat tey 3ere actively engage) in managing s"ccession 3itin teir
organisation (<ational Aca)emy of ="+lic A)ministration, $((:). 4o3ever, tere is a )istinct lac7 of empirical
evi)ence of 4. o"tcomes to accompany te general claims of a positive relationsip +et3een s"ccession
management an) organisational performance (4"ang, 200$). Tis article provi)es some preliminary insigts into
s"ccession management +y o"tlining a case st")y of te intro)"ction an) eval"ation of a s"ccession management
programme.
Met!o$
Te case st")y organisation a) no formal s"ccession management or s"ccession planning system in place prior to
te intro)"ction of te c"rrent sceme. Te organisation )i) not ave a consistent set of agree) lea)ersip
capa+ilities for internal staff, an) management 3as concerne) a+o"t pro-ections of "p to 50 percent senior staff
retirements in te f"t"re tree to fo"r years. Te organisation i)entifie) tat lea)ersip )evelopment an) retention
3as a ma-or iss"e for gro3ing te +"siness in te f"t"re an) to effectively meet ne3 +"siness callenges. 8n
response to tis sit"ation a s"ccession management programme 3as )evelope) for te top tree lea)ersip tiers
3itin te organisation. Te profile of te participants is o"tline) in Ta+le $.
Ta+le $
S"ccession management participant profile
+evel 3os 1ssessed ,ale 4 5emale 4 1verage 1ge 1verage &ervice 6ears
Gisionary %6 95 $: 6%.2 $6.%
Strategic $:$ :9 22 62.6 $5.%
Operational $:: &6 5& 6$ $$.9
/or7ing 3it an e,ternal cons"ltant te organisation )esigne), implemente) an) ten eval"ate) a s"ccession
management sceme. Te first step in te process 3as to "n)erta7e a capa+ility profiling to meet te callenges of
te ne,t tree'five years. A range of +"siness plans, )ata on te organisation?s vision an) )irection, along 3it
relate) )ata 3as analyse) for critical s"ccess capa+ilities. D"ring tis stage of te pro-ect te commitment an) >+"y'
in? of senior managers across A"stralia 3as sec"re) +y "sing a t3o'pase )ata collection process. Te first pase
3as to ol) $9 in)ivi)"al meetings 3it strategic lea)ers 3itin te organisation to solicit inp"t on +eavio"rs
reA"ire) for effective lea)ersip. Te in)ivi)"als 3ere selecte) +y te organisation?s steering committee as te staff
+est a+le to artic"late te lea)ersip capa+ilities tat 3ere most cr"cial for organisational s"ccess. Tis process 3as
ten +roa)ene), an) $9 foc"s gro"p intervie3s 3ere "n)erta7en 3it $09 operational lea)ers to gain teir i)eas on
effective +eavio"rs.
From tese intervie3s, a )raft list of capa+ilities 3as )evise) "sing te empirical an) secon)ary )ata gatere) 3it
reference to previo"sly vali)ate) lea)ersip capa+ilities. Te )raft list 3as circ"late) for assessment in te form of a
A"estionnaire to a representative gro"p of e,perts 3itin te organisation. Te participants 3ere as7e) to rate te
importance of te capa+ilities at teir level, ran7 te capa+ilities in or)er of importance an) in)icate te percentage
of te reA"irements for tis management level covere) +y te capa+ilities. !sing te latter inp"t te capa+ility
profiles 3ere ten 3ritten to ens"re clear statements 3ere organisationally relevant an) integrate) into e,isting
competency frame3or7s. Te profiles 3ere create) for "se in f"t"re recr"itment an) selection, as 3ell as in te
secon) stage of internal participant assessment.
Te ne,t step 3as to i)entify can)i)ates 3it lea)ersip potential for te talent pools. Tat 3as acieve) +y
con)"cting assessments "sing te capa+ility profiles, performance ratings an) o+serve) s7ills an) e,perience.
D"ring tis stage of te process tree gro"ps 3ere assesse)0 visionaryEstrategic managers, strategicEoperational
managers an) operationalEtactical managers.
All can)i)ates 3ere provi)e) 3it )etaile) fee)+ac7 on teir assesse) performance. 8n con-"nction 3it te
)e+riefing, all ig potential can)i)ates 3ere provi)e) 3it )evelopment plans an) appropriate training
programmes. Bac can)i)ate?s performance an) )evelopment nee)s 3ere ten trac7e) con-ointly 3it
organisational reA"irements. As part of te contin"o"s improvement an) analysis process +"ilt into te
programme?s implementation, te overall effectiveness of te s"ccession management programme 3as eval"ate)
after te first year.
Researc! &in$ings
Te eval"ation mo)el 3as a)apte) from @ir7patric7?s ierarcy of eval"ation. Ta+le 2 o"tlines te fo"r levels of
eval"ation an) teir components. Te evi)ence for te eval"ation 3as collecte) +y means of intervie3s, vi)eo case
st")ies an) organisational )ata on )evelopment planning, placements an) "tility analyses.
Ta+le 2
Bval"ation Frame3or7
+evel 1
/eaction
#eas"res of sta7eol)er perceptions of
te effectiveness of te programme
4o3 satisfie) are te participants, managers,
4. an) oter sta7eol)ersH
+evel )
+earning '
(rogramme (rogress
4o3 3ell is eac part of te programme
meeting programme o+-ectivesH
Foc"ses on 3at as +een acieve)
+evel 7
8ffective (lacements
Beavio"r cange evi)ence)
/at I of vacancies in lea)ersip positions
can no3 +e fille) internallyH
+evel 9
:rganisational /esults
Organisations a+ility to +e effective
4o3 is te s"ccession management
programme contri+"ting to organisational
res"ltsH
A total of %: intervie3s 3ere con)"cte) 3it ran)omly selecte) sta7eol)ers in te s"ccession management
programme. Tese incl")e) fo"r gro"ps ' talent pool participants (2(), teir managers ((), 4. managers (9) an)
gro"pEgeneral managers ($$). Te e,ternal cons"ltant in colla+oration )evelope) te intervie3 g"i)es 3it te
internal )evelopment "nit. Te intervie3s aime) to gater +ot A"antitative an) A"alitative )ata on 7ey aspects of
te programme.
All sta7eol)er gro"ps reporte) igly positive reactions to te s"ccession management programme. On a $0'point
scale te mean satisfaction 3as :.%, an) te participants conveye) )escriptors s"c as >over)"e? an) great >concept?.
Tere 3as no significant )ifference in ratings +et3een te fo"r gro"ps. Te +enefits most commonly citie) 3ere te
i)entification of talent to meet te lea)ersip nee)s of te f"t"re (%9I)0 te )evelopment of lea)ersip s7ills to
improve +ot personal an) organisational performance (2&I)0 an) te creation of a str"ct"re) process for
assessment an) )evelopment (25I).
2oncerns a+o"t te programme 3ere centre) on a perceive) lac7 of follo3'"p to te process. 8n partic"lar tere 3as
concern tat >noting as appene)? since te first )evelopment activity. 8t 3as also i)entifie) tat more fee)+ac7
on te impact of te programme at te organisational level 3as nee)e) an) a minor concern 3as e,presse) a+o"t
te impact te programme a) on staff tat 3ere not incl")e), s"c as perceptions of elitism an) -ealo"sy.
Te perceive) "sef"lness an) acc"racy of lea)ersip capa+ilities 3as rate) ig (mJ9.02) 3it ratings +elo3 si, on
te $0 point scale. Overall te capa+ilities 3ere reporte) to +e compreensive, acc"rate an) reflective of +est
practice. Several intervie3ees note) tat te capa+ilities 3ere a Dgoo) startC an) so"l) +e a)apta+le an) revie3e)
reg"larly to reflect te canging nee)s of te organisation. Te assessment an) )e+riefing process 3as rate) "sef"l
(mJ:.6:), 3ile tere 3ere no significant )ifferences +et3een te fo"r gro"ps of te )ifferent levels, te
participants 3it igest assessment scores rate) te process iger (mJ9.%:) tan tose 3o 3ere lo3est in te
+rac7et (mJ&.:%).
Te )evelopment planning process rate) positively (mJ&.&2) an) tere 3ere no )ifferences +et3een te fo"r
gro"ps. 8ntervie3ees 3o more satisfie) 3it te assessmentE)e+riefing process 3ere also more satisfie) 3it te
)evelopment process (rJ.60). 2oncerns i)entifie) 3ere tat te plans 3ere impersonal or vag"e, an) )i) not target
)evelopment nee)s relevant to teir -o+. Anoter iss"e raise) 3as manager involvement, 3ic range) from very
s"pportive to negative. #any participants reporte) tat 3ile teir manager 3as s"pportive of )evelopment, it 3as
not ma)e a priority, 3ic correspon)e) 3it managers? comments a+o"t te )iffic"lty in ma7ing time for
)evelopment iss"es. 8nci)entally, participants an) managers 3o reporte) greater manager involvement 3ere also
more satisfie) 3it te )evelopment planning process (rJ.%%). An analysis of )evelopment activity in)icate) tat
te participants a) complete) :$ percent of )evelopment activities. Activities ave incl")e) pro-ect 3or7, co"rses,
coacing an) mentoring, on te -o+ activities an) a range of relate) actions. Analyses )"ring te meas"rement
perio) so3e) tat $00 percent visionary an) %0 percent strategic appointments 3ere ma)e from te talent pools.
Some :$ percent of participants reporte) tat tey a) ma)e canges to teir +eavio"r as a )irect res"lt of
fee)+ac7 from te assessment process. Bigt of te nine managers intervie3e) also reporte) tat tey a) o+serve)
+eavio"ral canges in teir )irect reports. Te canges incl")e) +ecoming more assertive an) pro'active 3it
i)eas0 )elegating more to )irect reports an) +eing +etter 3it fee)+ac70 an) +ecoming more team oriente)0 an)
improving interaction s7ills s"c as listening, comm"nication an) empaty.
A ret"rn on investment an) "tility analysis 3ere also "n)erta7en to meas"re te val"e of te programme. Factors
incl")e) in te calc"lations 3ere te n"m+er of s"ccessf"l managers promote) from te talent pools, improvement
in te vali)ity of te selection process for promotion, estimate) contri+"tion +ac7 in ten"re, estimate) )ollar val"e
ret"rn on ig performers, correlation of s"ccessf"l assessment res"lts an) on te -o+ performance, an) cost
)ifference +et3een ne3 an) ol) promotion processes. As te monetary o"tlay 3as confi)ential te act"al fig"res
cannot +e reporte) ere, +"t it can +e reporte) tat tere 3as a 29& percent ret"rn on investment.
Disc"ssion
Te case st")y organisation?s staff )emonstrate) s"+stantial ongoing commitment across most levels of te
+"siness, an) tere 3as general s"pport for te process, not only at te igest levels, +"t also all te 3ay )o3n te
line. 8n partic"lar, most senior management involve) in te programme 3ere prepare) to provi)e s"pport an)
)evelopment opport"nities for staff i)entifie) as ig potential. Tese factors, no )o"+t, contri+"te) to te ig
level of e,presse) satisfaction 3it te s"ccession management process an) its implementation, as evi)ence) in te
programme eval"ations. Te pro+lems i)entifie) 3ere associate) mainly 3it in)ivi)"al responses an) isolate)
inci)ences of less tan f"ll s"pport for te programme.
Te employees targete) for )evelopment 3ere more satisfie) 3it te programme tan tose 3o score) lo3 on
teir assessments. Tis igligts te importance of effectively managing te assessment, placement an)
promotion components, to ens"re tat employee )issatisfaction is minimise). /ile targete) staff appeare)
)e)icate) to contin"al assessment, )evelopment an) fee)+ac7, tey felt tat some of teir managers 3ere
some3at less committe). Tis fin)ing igligts te importance of involvement at all levels f"lly 3it
comm"nication to all staff.
8n researc on +est practice in s"ccession management ;in7age (2000) reporte) tat almost t3o tir)s of +est
practice companies fille) vacancies 3it internal can)i)ates. 8n te case st")y $00 percent >visionary? an) %0
percent >strategic? appointments 3ere fille) +y internal can)i)ates. Tese fig"res s"ggest tat te programme as
+een relatively s"ccessf"l in tis regar).
Tere are a n"m+er of oter criteria on 3ic an effective s"ccession management system can +e meas"re)0
alto"g many of tese )imensions reA"ire longer term meas"rement. Te responsiveness of te programme to
organisational restr"ct"res, fostering team )evelopment, enco"raging )iversity, an) increasing glo+alisation entails
contin"al eval"ation over several years. 8n or)er to +e effective an) responsive to cange, te systematic analysis of
s"ccession management programmes so"l) +e incorporate) into te meas"rement of a programme?s
performance. Te case st")y )emonstrates tat significant +enefits can accr"e to a compreensively )esigne),
implemente) an) eval"ate) programme, +"t also igligts te )ept of organisational s"pport tat is reA"ire) for
s"ccession management to s"ccee) an) te critical importance of contin"o"s eval"ation.
Concl"$ing remar's
S"ccession management is a "sef"l policy frame for +"sinesses to "se in te )evelopment an) retention of ig
potential employees. Arg"a+ly, tis strategic i)entification an) )eployment of a +"siness?s "man reso"rces 3ill
lea) to a more effective an) s"ccessf"l long'term +"siness )evelopment. 4o3ever, s"ccession programmes reA"ire
s"+stantial employee commitment an) effective reso"rce allocation, 3ito"t f"ll organisational s"pport s"c
programmes are "nli7ely to reac teir f"ll potential.
For effective s"ccession management te 4. f"nction nee)s to )evelop reso"rce an) )evelopment strategies an)
processes tat em+e) s"ccession )isciplines into stan)ar) organisational practices. /ile te )ay'to')ay
s"ccession process is line o3ne), 4. as a critical f"nction in facilitation an) )ata management. Tis encompasses
management reso"rce strategy, "man reso"rce planning, s7ills an) capa+ilities analysis, recr"itment an)
selection, an) management )evelopment. S"ccession management cannot stan)'alone0 it m"st +e lin7e) 3it
+"siness strategy an) its o"tp"ts.
4"man reso"rce management terefore is responsi+le for te )evelopment of policies tat tie te s"ccession
programme into )ecisions on internal )evelopment an) e,ternal recr"itment, an) strategies for te )evelopment of
tose capa+ilities, 3ic 3ill +e nee)e) no3 an) in te f"t"re. Te callenge of managing tis process incl")es
maintaining fle,i+ility0 allo3ing employees to ma7e teir o3n career )ecisions0 an) te nee) to increase )iversity,
an) especially to ens"re tat te talents of 3omen an) minority gro"p mem+ers are recognise) an) )evelope).
S"ccession management programmes, 3en aligne) 3it +"siness nee)s, can +e "se) as a 7ey element of an 4.
strategy to +"il) c"stomise), proactive career )evelopment for talente) in)ivi)"als. 2learly )efine) criteria for
a)vancement, lin7e) 3it concrete )evelopment opport"nities tat are aligne) 3it corporate c"lt"re, provi)e
employees 3it an "nam+ig"o"s in)ication of 3at te organisation val"es an) re3ar)s in terms of career
progression.
Te presente) case st")y evi)ence ere in)icates tat te intro)"ction of a s"ccession management programme
can provi)e an organisation 3it a n"m+er of positive o"tcomes. 4o3ever, as tis eval"ation only e,amine) te
first pase of implementation, an) ongoing analysis of te s"ccession management programme an) its impact 3ill
nee) "n)erta7en. Te esta+lisment of any correlation +et3een caracteristics of a s"ccession management
programme an) 4. performance 3ill reA"ire e,tensive researc +eyon) tat "n)erta7en for tis preliminary case
st")y.
References
A"stralian B"rea" of Statistics ($((:). Retirement and Retirement Intentions, <o.&259.0. 2an+erra: A"stralian
1overnment =rinting Service.
A"stralian B"rea" of Statistics ($(((). Labour Force Projections, Australia, $((('20$& <o. &2&0.0, 2an+erra:
A"stralian 1overnment =rinting Service.
Bar"c, K. ($(((). >8ntegrate) career systems for te 2000s?, International Journal of Mano!er, 20(:), 652'6%:.
Berntal, =., .io",, S. & /ellins, .. ($(((). "he leadershi forecast# A benchmar$ing stud%, =itts+"rg:
Development Dimensions 8nternational.
Boe7er, /. & 1ol)stein, L. ($((5). >=erformance an) s"ccessor coice: te mo)erating effects of governance an)
o3nersip?, Academ% of Management Journal, 5&($), $:2'9&.
Byam, /. 2., <elson, 1. & =aese, #. (2000). >2"ltivating ;ea)ers /it an Acceleration =ool?, Health Forum
Journal, ttp:EE3vr3.ealtfor"m.com
Byam, /., Smit, 1. & =aese, #. (200$). &ro! %our o!n leaders, =itts+"rg: Development Dimensions
8nternational.
2a")ron, S. ($((&). >=lan to)ay for an "ne,pecte) tomorro3?, Personnel Journal, :%((), 60'6%.
Do)), @. (200$). >@no3ing o3 to 7eep yo"r +est an) +rigtest?, 'or$force, %:'&0.
1"ilfor), .. (2000). (uccession Planning &etting Little Real Attention, Bi*Lo"rnals.comEAtlanta A"g"st 29.
1"inn, S.;. ($((:). >2ange +efore yo" ave to: For 2BOs 3o recogni*e te nee), te tools e,ist no3 for
organi*ational cange?, )areer *e+eloment International, 2(%), 22%'229.
Fin7e S. & 4am+ric7, D. ($((&). (trategic Leadershi# "o e,ecuti+es and their effects on organisation, St =a"l:
/est.
4am+ric7, D., 1elet7anyc*, #. & Fre)eric7son, L. ($((5). >Top e,ec"tive commitment to te stat"s A"o: some
res"lts of its )eterminants?, (trategic Management Journal, $6(&), 60$'$9.
4"ang, T. (200$). >S"ccession management systems an) "man reso"rce management o"tcomes?, International
Journal of Mano!er, 22(9), :5&':6:.
;ie+man, #., Br"er, .. & #a7i, B. ($((&). >S"ccession management: te ne,t generation of s"ccession planning?,
Human Resource Planning, $((5), $&'2(.
;in7age 8nc. ($(((). >Best =ractices for 8)entifying, Developing an) .etaining Bmerging ;ea)ers?, -,ecuti+e
(ummar% of a .ennis/Lin$age Research (tud%, $(((, MOnlineN Availa+le: ttp:EE333.lin7ageinc.com.
;in7age 8nc. an) L. 4o3ar) & Associates ($(((). Leading *i+ersit%# .enchmar$ing (uccessful Practices for the
&lobal Mar$etlace, MOnlineN Availa+le: ttp:EE333.lin7ageinc.com.
;in7age 8nc., & te !niversity of #icigan B"siness Scool (2000). Action Learning, Le+eraging Learning to
Achie+e 0rganisational )hange 1 *e+eloment, MOnlineN Availa+le: ttp:EE33.8in7ageinc.com.
#anagement Development .evie3 ($((:). Te Do3 2emical 2ompany?s form"la for s"ccession. $0(5), $00'$$$
#et*, F. ($((9), >Designing s"ccession system for ne3 competitive realities?, Human Resource Planning, 2$(5), 5$'
5:.
#inistry of te =remier an) 2a+inet ($(((). (uccession Management Practices and Princiles, =ert:
1overnment of /estern A"stralia.
<ational Aca)emy of ="+lic A)ministration ($((:). Managing (uccession and *e+eloing Leadershi# &ro!ing
the 2e,t &eneration of Public (er+ice Leaders, 4.# Series 888, /asington.
="rcell, D. ($((%). >2orporate strategy an) "man reso"rce management?, 8n Storey, L., Human Resource
Management 3 A )ritical "e,t, ;on)on: .o"tle)ge, &5'9&.
Scall, B. ($((:). >="+lic Sector S"ccession: A strategic approac to s"staining innovation?, Public Administration
Re+ie!, %:($), 6'$0.
Sonnefel), S. ($((%). >/en te 2BO can?t let go?, Har+ard .usiness Re+ie!, (Septem+er'Octo+er), 26'60.
S"llivan, L. (2000). Recruiting and retaining $e% talent, ;e,ington, #ass.: Te 2enter for Organisational
.esearc.
Tyson, S. ($((:). >4"man reso"rce management comes of age: strategic integration?. 8n S. Tyson, Human Resource
(trateg%, ;on)on: =ittman, $'$%.
/al7er, L. ($((9). >Do 3e nee) s"ccession planning anymoreH?, Human Resource Planning, 2$($5), ('$2.
/all"m, =. ($((5). >A +roa)er vie3 of s"ccession planning?, Personnel Management, 2%((), 62.