Succession planning is a process for identifying and developing internal people with the

potential to fill key business leadership positions in the company. Succession planning increases
the availability of experienced and capable employees that are prepared to assume these roles as
they become available. Taken narrowly, "replacement planning" for key roles is the heart of
succession planning. Effective succession or talent-pool management concerns itself with
building a series of feeder groups up and down the entire leadership pipeline or progression
(Charan, Drotter, Noel, 2001). In contrast, replacement planning is focused narrowly on
identifying specific back-up candidates for given senior management positions. For the most
part position-driven replacement planning (often referred to as the "truck scenario") is a
forecast, which research indicates does not have substantial impact on outcomes.
Fundamental to the succession-management process is an underlying philosophy that argues
that top talent in the corporation must be managed for the greater good of the enterprise. Merck
and other companies argue that a "talent mindset" must be part of the leadership culture for
these practices to be effective.
Succession planning is not a new phenomenon. Companies have been wrestling with ways to
identify, develop, and retain their talent for decades. So, why is succession planning suddenly
popping up on every companys radar screen? Todays organizations are facing higher demands
in a global market with the retirement of the Baby Boomers and the widening talent gap. The
home-grown and paper-based succession planning that companies relied on in the past are no
longer meeting the needs of todays workforce. In order to achieve results, companies need to
start with the basics, create a strong process and then invest in the tools and technology to instill
a talent development mindset in their organization. This report highlights research findings on
succession planning efforts in Best in Class organizations across multiple industries.
Succession planning is a process whereby an organization ensures that employees are recruited
and developed to fill each key role within the company. Through your succession planning
process, you recruit superior employees, develop their knowledge, skills, and abilities, and
prepare them for advancement or promotion into ever more challenging roles. Actively pursuing
succession planning ensures that employees are constantly developed to fill each needed role.
As your organization expands, loses key employees, provides promotional opportunities, and
increases sales, your succession planning guarantees that you have employees on hand ready
and waiting to fill new roles.
Succession planning is a process whereby an organization ensures that employees are recruited
and developed to fill each key role within the company. Through your succession planning
process, you recruit superior employees, develop their knowledge, skills, and abilities, and
prepare them for advancement or promotion into ever more challenging roles.
Actively pursuing succession planning ensures that employees are constantly developed to fill
each needed role. As your organization expands, loses key employees, provides promotional
opportunities, and increases sales, your succession planning guarantees that you have
employees on hand ready and waiting to fill new roles.
Effective, proactive succession planning leaves your organization well prepared for expansion,
the loss of a key employee, filling a new, needed job, employee promotions, and organizational
redesign for opportunities. Successful succession planning builds bench strength.

Develop Employees for Succession Planning

To develop the employees you need for your succession plan, you use such practices as lateral
moves, assignment to special projects, team leadership roles, and both internal and external
training and development opportunities.
Through your succession planning process, you also retain superior employees because they
appreciate the time, attention, and development that you are investing in them. Employees are
motivated and engaged when they can see a career path for their continued growth and
development. To effectively do succession planning in your organization, you must identify the
organizations long term goals. You must hire superior staff.
You need to identify and understand the developmental needs of your employees. You must
ensure that all key employees understand their career paths and the roles they are being
developed to fill. You need to focus resources on key employee retention. You need to be aware
of employment trends in your area to know the roles you will have a difficult time filling
externally.

Succession Planning - A 5 Step Process

Step 1: Identify critical positionsCritical positions are the focus of succession planning efforts.
Without these roles, the department or agency would be unable to effectively meet its business
objectives. Workforce projection data or demographic analysis is essential in identifying risk areas. A
risk assessment may also be conducted and compared to current and future vacancies to identify
critical positions within your organization.
Step 2: Identify competenciesA clear understanding of capabilities needed for successful
performance in key areas and critical positions is essential for guiding learning and development
plans, setting clear performance expectations, and for assessing performance. By completing the
process of competency or position profiling within your organization, current and future employees
gain an understanding of the key responsibilities of the position including the qualifications and
behavioural and technical competencies required to perform them successfully.
Step 3: Identify succession management strategiesNow that critical positions have been identified
and have been profiled for competencies, the next step is to choose from a menu of several human
resource strategies, including developing internal talent pools, onboarding and recruitment to address
succession planning.
Step 4: Document and implement succession plansOnce strategies have been identified, the next
step is to document the strategies in an action plan. The Succession Planning: Action Plan provides a
mechanism for clearly defining timelines and roles and responsibilities.
Step 5: Evaluate EffectivenessTo ensure that the department or agencys succession planning efforts
are successful, it is important to systematically monitor workforce data, evaluate activities and make
necessary adjustments.

Apple Inc. is an American multinational corporation headquartered in Cupertino, California,

that designs, develops, and sells consumer electronics, computer software and personal
computers. Its best-known hardware products are the Mac line of computers, the iPod media
player, the iPhone smartphone, and the iPad tablet computer. Its consumer software includes the
OS X and iOS operating systems, the iTunes media browser, the Safari web browser, and the
iLife and iWork creativity and productivity suites.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976 to
develop and sell personal computers. It was incorporated as Apple Computer, Inc. on January
3, 1977, and was renamed as Apple Inc. on January 9, 2007 to reflect its shifted focus towards
consumer electronics.
Apple is the world's second-largest information technology company by revenue after Samsung
Electronics, and the world's third-largest mobile phone maker after Samsung and Nokia.
Fortune magazine named Apple the most admired company in the United States in 2008, and in
the world from 2008 to 2012. On September 30, 2013, Apple surpassed Coca-Cola to become
the world's most valuable brand in the Omnicom Group's "Best Global Brands" report.
However, the company has received criticism for its contractors' labor practices, and for Apple's
own environmental and business practices.
As of May 2013, Apple maintains 408 retail stores in fourteen countries as well as the online
Apple Store and iTunes Store, the latter of which is the world's largest music retailer. Apple is
the largest publicly traded corporation in the world by market capitalization, with an estimated
market capitalization of $446 billion by January, 2014. As of September 29, 2012, the company
had 72,800 permanent full-time employees and 3,300 temporary full-time employees
worldwide. Its worldwide annual revenue in 2013 totalled $170 billion. As of Q1 2014, Apple's
five-year growth average is 39% for top line growth and 45% for bottom line growth. In May
2013, Apple entered the top ten of the Fortune 500 list of companies for the first time, rising 11
places above its 2012 ranking to take the sixth position. Apple is the most successful startup
company of all time, by market capitalization, revenue, and growth.
Employee relations
A class-action lawsuit alleging that the company suppressed employee compensation has been
filed against Apple in a California federal district court.
Litigation
Apple has been a participant in various legal proceedings and claims since it began operation
and, like its competitors and peers, engages in litigation (trying legal cases before the courts) in
its normal course of business for a variety of reasons. In particular, Apple is known for and
promotes itself as actively and aggressively enforcing its intellectual property interests.
Environmental record
Climate change and clean energy

On April 21, 2011, Greenpeace released a report highlighting the fact that data centers
consumed up to 2% of all global electricity and this amount was projected to increase. Phil
Radford of Greenpeace said we are concerned that this new explosion in electricity use could
lock us into old, polluting energy sources instead of the clean energy available today. On April
17, 2012, following a Greenpeace protest of Apple, Apple Inc. released a statement committing
to ending its use of coal and shifting to 100% clean energy. In 2013 Apple announced it was
using 100% renewable energy to power their data centers, and overall 75% of its power comes
from renewable sources.
In 2010, Climate Counts, a nonprofit organization dedicated to directing consumers toward the
greenest companies, gave Apple a score of 52 points out of a possible 100, which puts Apple in
their top category "Striding". This was an increase from May 2008, when Climate Counts only
gave Apple 11 points out of 100, which placed the company last among electronics companies,
at which time Climate Counts also labeled Apple with a "stuck icon", adding that Apple at the
time was "a choice to avoid for the climate conscious consumer".
Toxics
Greenpeace has campaigned against Apple because of various environmental issues, including a
global end-of-life take-back plan, non-recyclable hardware components and toxins within
iPhone hardware. Since 2003 Greenpeace has campaigned against Apple's use of particular
chemicals in its products, more specifically, the inclusion of PVC and BFRs in their devices. On
May 2, 2007, Steve Jobs released a report announcing plans to eliminate PVC and BFRs by the
end of 2008. Apple has since eliminated PVC and BFRs from its product range, becoming the
first laptop manufacturer to do so.
In the first edition of the Greenpeace 'Green Electronics Guide', released in August 2006, Apple
only scored 2.7/10.
The Environmental Protection Agency rates Apple highest amongst producers of notebooks, and
fairly well compared to producers of desktop computers and LCD displays.
In June 2007, Apple upgraded the MacBook Pro, replacing cold cathode fluorescent lamp
(CCFL) backlit LCD displays with mercury-free LED backlit LCD displays and arsenic-free
glass, and has since done this for all notebooks. Apple has also left out BFRs and PVCs in
various internal components. Apple offers information about emissions, materials, and electrical
usage concerning each product.
In June 2009, Apple's iPhone 3GS was free of PVC, arsenic, BFRs and had an efficient power
adapter.
In October 2009, Apple upgraded the iMac and MacBook, replacing the cold cathode
fluorescent lamp (CCFL) backlit LCD displays with mercury-free LED backlit LCD displays
and arsenic-free glass. This means all Apple computers have mercury free LED backlit displays,
arsenic-free glass and are without PVC cables. All Apple computers also have EPEAT Gold
status.

In October 2011, Chinese authorities ordered an Apple supplier to close part of its plant in
Suzhou after residents living nearby raised significant environmental concerns.
In November 2011, Apple featured in Greenpeace's Guide to Greener Electronics, which ranks
electronics manufacturers on sustainability, climate and energy policy, and how "green" their
products are. The company ranked fourth of fifteen electronics companies (moving up five
places from the previous year) with a score of 4.6/10 down from 4.9. Greenpeace praises
Apple's sustainability, noting that the company exceeded its 70% global recycling goal in 2010.
It continues to score well on the products rating with all Apple products now being free of PVC
vinyl plastic and brominated flame retardants. However, the guide criticizes Apple on the
Energy criteria for not seeking external verification of its greenhouse gas emissions data and for
not setting out any targets to reduce emissions. In January 2012, Apple announced plans and
requested that their cable maker Volex begin producing halogen-free USB and power cables.
In June 2012, Apple Inc. withdrew its products from the Electronic Product Environmental
Assessment Tool (EPEAT) certification system, but reversed this decision in July.
Labor practices
In 2006, the Mail on Sunday reported on the working conditions that existed at factories in
China where the contract manufacturers Foxconn and Inventec produced the iPod. The article
stated that one complex of factories that assembles the iPod (among other items) had over
200,000 workers that lived and worked in the factory, with employees regularly working more
than 60 hours per week. The article also reported that workers made around $100 per month and
were required to live pay for rent and food from the company, which generally amounted to a
little over half of workers' earnings.
Apple immediately launched an investigation and worked with their manufacturers to ensure
acceptable working conditions. In 2007, Apple started yearly audits of all its suppliers regarding
worker's rights, slowly raising standards and pruning suppliers that did not comply. Yearly
progress reports have been published since 2008. In 2010, workers in China planned to sue
iPhone contractors over poisoning by a cleaner used to clean LCD screens. One worker claimed
that he and his coworkers had not been informed of possible occupational illnesses. After a
spate of suicides in a Foxconn facility in China making iPads and iPhones, albeit at a lower rate
than in China as a whole, workers were forced to sign a legally binding document guaranteeing
that they would not kill themselves.
In 2011, Apple admitted that its suppliers' child labor practices in China had worsened.
Workers in factories producing Apple products have also been exposed to n-hexane, a
neurotoxin that is a cheaper alternative than alcohol for cleaning the products.
In 2013, China Labor Watch said it found violations of the law and of Apple's pledges about
working conditions at facilities operated by Pegatron, including discrimination against ethnic
minorities and women, withholding employees' pay, excessive work hours, poor living
conditions, health and safety problems and pollution.

Tax practices
Global taxes paid by ASI, 2009-2011[314]
2011
2010
2009
Total
Pre-tax earnings US$ 22 billion US$ 12 billion US$ 4 billion US$ 38 billion
Global tax
US$ 10 million US$ 7 million US$ 4 million US$ 21 million
Tax rate
0.05%
0.06%
0.1%
0.06%

Apple created subsidiaries in low-tax places such as the Republic of Ireland, the Netherlands,
Luxembourg and the British Virgin Islands to cut the taxes it pays around the world. According
to the New York Times, in the 1980s Apple was among the first tech companies to designate
overseas salespeople in high-tax countries in a manner that allowed the company to sell on
behalf of low-tax subsidiaries on other continents, sidestepping income taxes. In the late 1980s
Apple was a pioneer of an accounting technique known as the "Double Irish With a Dutch
Sandwich," which reduces taxes by routing profits through Irish subsidiaries and the
Netherlands and then to the Caribbean.
British Conservative Party Member of Parliament Charlie Elphicke published research on
October 30, 2012, which showed that some multinational companies, including Apple Inc.,
were making billions of pounds of profit in the UK, but were paying an effective tax rate to the
UK Treasury of only 3 percent, well below standard corporation tax. He followed this research
by calling on the Chancellor of the Exchequer George Osborne to force these multinationals,
which also included Google and Coca-Cola, to state the effective rate of tax they pay on their
UK revenues. Elphicke also said that government contracts should be withheld from
multinationals who do not pay their fair share of UK tax.
Charitable causes
As of 2012, Apple is listed as a partner of the Product RED campaign, together with other
brands such as Nike, Girl, American Express and Converse. The campaign's mission is to
prevent the transmission of HIV from mother to child by 2015 (its byline is "Fighting For An
AIDS Free Generation").
In November 2012, Apple donated $2.5 million to the American Red Cross to aid relief efforts
after Hurricane Sandy.

Human Resource Management of Apple.inc

Apple Inc. (NASDAQ: AAPL; previously Apple Computer, Inc.) is an American multinational
corporation that designs and markets consumer electronics, computer software, and personal
computers. The company's best-known hardware products include the Macintosh line of
computers, the iPod, the iPhone and the iPad. Apple software includes the Mac OS X operating

system; the iTunes media browser; the iLife suite of multimedia and creativity software; the
iWork suite of productivity software; Aperture, a professional photography package; Final Cut
Studio, a suite of professional audio and film-industry software products; Logic Studio, a suite
of music production tools; and iOS, a mobile operating system. As of August 2010, the
company operates 301 retail stores in ten countries, and an online store where hardware and
software products are sold. As of May 2010, Apple is one of the largest companies in the world
and the most valuable technology company in the world, having surpassed Microsoft.
Established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977, the
company was previously named Apple Computer, Inc., for its first 30 years, but removed the
word "Computer" on January 9, 2007, to reflect the company's ongoing expansion into the
consumer electronics market in addition to its traditional focus on personal computers. As of
September 2010, Apple had 46,600 full time employees and 2,800 temporary full time
employees worldwide and had worldwide annual sales of $65.23 billion
Apple Computer is a company famed for its innovative strategic management. Apple Computer
management strategy places great emphasis on ground-breaking new products and designs.
Apple change management has proved successful over the years as the company has adapted to
the changing market by constantly redefining the design and purpose of digital technology. The
Apple brand is now synomynous not only with Macintosh personal computers but with
innovations such as the iPod and the iPhone.
The corporate culture of Apple Computer is one of optimism and belief. The founder and CEO,
Steve Jobs, believes in funding and investment in new products and innovation even against the
backdrop of a challenging economic climate.
The following articles refer to Apple Computer and Apple Computer management. Use them to
learn from the past of Apple Computer and the present of Apple Computer to build a successful
future for you and your own organisation.

HRs role in Apples success

March 28, 2012 Occasional Contributors Employee Relations, Human Resources, Recruiting
and Hiring, Training and Development

Image: www.apple.com/ca/
What is it about the Apple Store thats just so great? Is it the super chic product line? The fact
that you can tinker with just about anything in there? The super modern layout and design? All
of those things are neat, sure, but Id argue theres something moresomething you may not
have paid as much attention to.
Apple is running a seriously smooth operation in its retail stores. Each employee has a distinct
role to play, understands that role, and does his or her part to deliver the level of service weve
come to expect from this powerful brand. All of this requires serious alignment of brand,
business goals and people processes.
Finding the right people to work in the stores is half the battle. There are things that Apples
retail arm does particularly well in organizational developmentthings any organization could
learn from:
P

Know your roles! Tightly defined roles ensure that your employees knows exactly what he or
she is expected to do, what others do and what other roles they could move into. Those boldly
coloured T-shirts that Apple Store employees wear arent just for looks; they designate the
distinct role each employee plays. From Experts who assess visitors needs, and direct them
to the right place, to Geniuses who speak your language when somethings wrong with your
precious MacBook, everyone in the store knows his or her place.
Free up your leadership. When your workforce is deployed effectivelywith minimal room
in the process for bottle-neckingmanagers spend less time wondering who should be where
and more time keeping the machine in shipshape. Apple Store employees are busy delivering
Apple-grade customer service, so its up to leadership to maintain the same level of awesome
day after day. Theyre doing more than managing the operation; theyre coaching staff, leading

training and driving sales.

Make work meaningful. When your employees know that what theyre doing matters, its
easier to inspire them to do their best. And no one appreciates this more than the employees
staffing the stores, who are on the front lines of the customer relationship. Apple would be hardpressed to deliver their standard of service in retail unless their employees were satisfied with
the level of employee engagement.
Retain with growth opportunities. Many organizations are struggling to retain top talent, but
how many offer a great opportunity for college grads to make something of themselves?
Besides having a great job portal on their site with multiple open positions, Apple prides itself
on promoting from within. For the 20-something Expert with a masters degree whos
manning the entrance to an Apple store today (I could name more than one), thats pretty
encouraging.
A lesson for your grinding gears
Organizational development at this calibre doesnt just happen, but its a necessary part of a
thriving company culture like Apples. Getting to that level requires open dialogue between
senior leadership and business partners and human resources and recruiting. Youve already got
Experts, Specialists, Geniuses and Creatives in your organization. Its up to you to find them,
engage them and let them know you want them to grow with you.

Apple's Human Resource Management Case Study

Recruitment Approaches Best Suitable for Apple:

Apple's talent acquisition channels should aim to go beyond the traditional methods of making
use of print advertisements and agencies and focus towards integration of newer and more
broad-scoped methods of job boards and virtual social networks.
Making use of referrals and targeting the most innovative skill-set based individuals in the topnotch colleges is also an excellent method of tapping into potential quality human resource.
Referrals are an excellent mode of attracting new employees while allowing the company the
additional benefit of aligning the on-board talent and the talent needs. Typically the referrals
method is so effective that more than 25% of new talent in a company comes through this
channel. Apple caters to an industry that relies on rapid innovation and timely new product
development, feeding on a plethora of creative ideas to meet the demands of its customers
world-wide. Also the company has adopted a secrecy policy towards safeguarding the
execution of its core projects and processes in an attempt to maintain its competitive advantage.
As the referrals method helps build channels and as Apple struggles to maintain an autonomous
control over its core processes, this method will help Apple mine the networks of the most apt
candidates with the most befitting work histories and networks. The use of private recruiting
agencies can help Apple in the acquisition of leadership positions and positions that require
diverse or concentrated specialties. The costs associated with this channel are however high.
Still, the use of this method is recommended because Apple enjoys the advantage of name
recognition making the talent acquisition process more productive (Silzer and Dowell, 2009).
Recruiter Traits and Behaviors for Successful Recruiting Campaign
Recruiters can play an essential role in managing and affecting the job choices made by the
applicants particularly in key positions. Specifically in relevance to the recruitment campaign
for Apple, the need for trained recruiters who are informative and trustworthy is essential. The
targeted talent for Apple consists of highly creative individuals who are more prone to be putoff by a recruitment process with an overt emphasis on the selection process. Therefore,
Apple must deploy recruiters who are able to build and retain the interest of the candidates.
Also, pertaining to the technical specifications of the jobs requiring high skills and creativity;
Apple must make the decision between recruiters that are human resource specialists or experts
at a particular job. For senior and supervisory positions, I recommend making use of both types
of recruiters, as a team, in order to gauge the competency, commitment and devotion towards
the proposed job. For executive levels, Apple may employ its experts as recruiters. Studies
reveal that candidates associate higher credibility to recruiters that are experts at particular jobs
as opposed to HR specialists. In relation to the industry Apple caters to; the technical
competency of the recruiter is a key factor affecting its recruitment output.

The Real Succession Plan For Steve Jobs: Apple Thinks Different With Apple University

This week's announcement of Steve Jobs' succession to Chairman puts the topic of success
management back on the front page. When such a strong leader steps aside, how does Apple maintain
its admired culture of innovation, execution, and business growth? There is more here than turning
over the reigns to Tim Cook: Apple has a unique and powerful succession model built on its own
experience in leadership, media, and innovation.

Steve Jobs is more than a leader - he has deep experience in the technology industry.
First, Steve Jobs is more than a business leader. He embodies the essence of Apple - with vision,
passion for design and product excellence, wrapped in a perfectionist personality with amazing
business savvy. His ability to lead Apple comes not only from his leadership qualities, but also his
deep experience in the technology industry. Over the period of his career (he is around my age so I
watched Apple during every step of its life) he has out-innovated the pioneers (Nokia, Motorola,
Google), out-executed the big guys (Microsoft, IBM - remember OS/2?), and out-flanked the
operators (Dell, HP).
Part of Jobs' leadership strength comes from his experience with technology innovation: Mac vs.
Windows, NeXT vs. Sun, iPhone vs. Blackberry, and iPad and iOS vs. everyone else. This deep
experience in technology and how to refine it for consumer delight has taken years to develop.
Jobs' Leadership Philosophy and Style
The second issue Apple faces in its succession strategy is what to do about Jobs' leadership style and
philosophy. I have met many people who work at Apple, and I know that his force of personality is
both revered and feared in the company. One Apple employee I spoke with mentioned that she was
afraid to run into him in the elevator because if he asked her any questions she was afraid she might
say something wrong and get fired.

This style of leadership has created a strong sense of execution and excellence at the company - but
will also be hard to replace. During his long career, Jobs has developed a long list of philosophies
about management, and these need to be incorporated into the future.
How Succession Works
We have looked at succession management among hundreds of companies, and our keynote research
in this topic (High-Impact Succession Management) developed the following maturity model.

As this model shows, companies evolve their succession strategies from "replacement charts" (these
were originally created in World War 1 when soldiers were killed on the battlefield and the Army
needed to know who would take a soldier's place) to a highly integrated process which enables people
at all levels to move from role to role.
Our research shows that fewer than 8% of all organizations have reached the top level in this model,
so this area of business is very much a work in process for most organizations. What our research has
found is that succession only works well when there is a clear understanding of the leadership traits
and competencies needed at each level, and the process is sponsored by executives at the top.
In the case of Apple, we know that the board and Jobs himself have been planning for succession for
several years.

Apple's Succession Strategy for Jobs: Apple University

Publicly, we know that Apple has been grooming Tim Cook for several years. Not only has he already
experienced the CEO role, he has been working directly with Jobs on the company's supply chain - so
he has a deep understanding of the internal operations of the company.
Behind the scenes, we also know that there has been a project at Apple for several years to "capture
the essence of Steve Jobs management philosophies" for generations ahead. Under the title of Dean of
Apple University, Joel Podolny (former Dean of Yale Business School) has been building a leadership
curriculum around Jobs behind the scenes. While we have not seen the product of this work, several
ex-Apple employees mentioned to us that this is a very strategic project designed to help Apple
continue under Steve's leadership model even after Steve leaves the company.
This is an example of Apple "thinking different." While most companies would look at competency
models and hire executive recruiters to assess leadership candidates for succession, Apple is taking a
page from our High-Impact Learning Organization playbook. They are capturing the essence of
Apple's executive performance and philosophy in digital form for leaders on into the future.
We have been studying corporate universities for many years - and most highly revered programs
(McDonald's Hamburger University, GE Crotonville, Accenture Q Center) are true learning
institutions that bring together management philosophies, technical skills, and leaders to help all
employees understand the organization and its principles and practices. In the case of Apple, I believe
the fairly secretive Apple University has spent a lot of time and money capturing the experiences and
principles of Steve Jobs for others to use in the future.
According to Apple, the company founded Apple University in 2008 "to teach Apple employees how
to think like Steve Jobs and make decisions he would make." In many ways it was built to solve the
problem of "running Apple after Steve Jobs" - and setting in place the tools and information which
helps Apple learn from his collective 30 years of wisdom.

As the graphic above shows (this was obtained from Onlinecolleges.net), the University is designed
around capturing Job's collective learning and translating this into content, programs, and materials

which Apple employees and leaders can use long into the future.
I had the opportunity to meet with one of Apple's prior heads of training, and she told me about
Apple's highly focused approach to technology-enabled learning. For many years Apple has been
using its own products (one of Apple's earliest market wins was its ability to sell computers for digital
education) to build highly interactive learning solutions for retail and operations teams. When Apple
iPhones are rolled out to AT&T and Verizon, for example, the company must instantly train tens of
thousands of sales people within a few weeks. This type of training is done through advanced elearning, and this type of expertise has been refined within Apple for all the years that we worked with
the company.
Today Apple University is still a well-kept secret. But from what we have learned, I think it is one of
the most innovative and exciting forms of succession management yet to be seen. Think different
about your own leadership and how you can transfer skills and culture forward when your leaders
leave. Apple once again is likely to show us the way.
High-Impact Succession Management: Best Practices, Models and Case Studies in
Organizational Talent Mobility is the first study to take a comprehensive view of succession
management and examine what companies are doing at all levels of the enterprise not just at
top executive levels. The study was conducted in partnership with the Center for Creative
Leadership, an internationally recognized provider of executive education.
The study is based on an extensive survey of 220 senior HR leaders with responsibilities for
succession planning and management; in-depth interviews with more than 25 senior business
executives and succession management program managers; and a quantitative survey of more
than 100 business leaders who provided input on their perceptions of the overall effectiveness
of their companys succession management strategies.
Today, talent mobility the ability to quickly and effectively reorganize and move talent into
new roles and vacancies is critical to business success. Without an integrated, top-to-bottom
succession management program, your organization cant make informed talent-related
decisions. High-Impact Succession Management serves as a detailed resource for business and
human resource executives involved in all aspects of succession planning and management.
The study includes:
P
P
P
P
P

A five-stage maturity model for succession management

Ten best practices for maximizing business impact
Actions to immediately improve current succession management processes
A discussion of commonly used tools and technologies
Case studies and examples from companies such as BASF Crop Protection, United Stationers,
Knauf Insulation, and the The Kudelski Group
P More than 80 graphs, charts, and tables
Following are highlights of research findings:
P More than half of research respondents said their companies implement succession management
processes at only the most senior executive levels.
P Only 12% of respondents said their companies succession management programs are integrated
with talent management programs such as performance management and employee

development.
P Fewer than 40% of respondents said their companies include mid-level managers and skilled
professionals in succession planning initiatives; only 11% included first-line supervisors.
High-Impact Succession Management is available at no cost to all Bersin & Associates research
members. Non-members can purchase the study for $1,495.

5 Succession Planning Lessons From Steve Jobs

Leadership guru Carmine Gallo offers tips from the Apple CEO transition that your
enterprise would be wise to learn. As the high-profile CEO of what many regard as
America's--if not the world's--most dynamic tech company, Steve Jobs has influenced more
than just computer design during his storied career. His idiosyncratic leadership style,
hyperbolic presentations, and fiercely hands-on management approach have inspired the envy
of executives and the fear of more than a few employees and competitors. Even as he steps
down from the helm at the company he founded, he sets an example for those who would aspire
to his level of leadership.
Author Carmine Gallo has followed Jobs' career closely over the years, and penned two popular
books, The Innovation Secrets of Steve Jobs and The Presentation Secrets of Steve Jobs,
explaining how Jobs' leadership and management practices have made Apple the world's most
valuable company. InformationWeek.com caught up with Gallo the day after Jobs announced
his departure as Apple CEO to find out what insight enterprise execs can glean from Jobs'
handling of this transition. Here are Carmine Gallo's five lessons from Steve Jobs' succession at
Apple.
Focus on the customer, client, user experience. "Above everything else, Steve Jobs really
understands his customer," said Gallo. Throughout his terms as CEO of Apple, Jobs has bucked
conventional wisdom in the industry and eschewed the demands and expectations of the
industry--and sometimes even the most vocal consumers--to bring the best end-user experience,
as he understood it at the time--to market.
"When Jobs announced 99-cent music downloads, a lot of people thought it was crazy, because
people were used to downloading music online for free," remarked Gallo. At the same time, the
music industry balked at what it perceived as a rock-bottom price per song. "He stuck to his
guns, and he was right." To Gallo, Jobs' apparent stubbornness is an outcropping of his deep
convictions about user experience. "Users don't always know what they want," Gallo said.
"Steve Jobs does, and he gives them what they want."

Jobs displayed the same mentality in executing his departure from Apple, enforcing his
trademark secrecy and weathering anger from the investment community and Apple customers
over his refusal to disclose many details about his health condition. Yet he consistently pursued
his vision of user experience at Apple until the moment of his resignation. Ultimately, said
Gallo, that deep focus on the user will be his legacy.
Build a culture that transcends your leadership. Steve Jobs has developed such a cult
following that he can seem impossible to replace. But in Gallo's view, Jobs has done a
remarkable job of planning for his own succession by building a management team and
company culture that embrace his vision for the company and the technologies it creates.
"He surrounded himself with people who share his passion for design, user experience, and
excellence," said Gallo. "He built a culture within the company that puts the user first." This
move is critical to Apple's future success after Jobs steps down, and we'll soon see how well
Jobs has done at selecting and training lieutenants who can carry the company forward. But for
Gallo, the message to other leaders at all levels of business is clear: Great leaders build
companies that can excel without them.
Control the message, stay consistent. Apple has developed a reputation for extreme secrecy,
and has taken more than a little heat for it at times. Every Apple product launch is preceded by
months of rumors, about which the company refuses to comment. Steve Jobs' succession plans
have been no exception, handled with the same tight-lipped secrecy as the launch of a new Mac.
Of course, as with any anticipated Apple announcement, speculation and rumor have abounded,
and most analysts predicted Tim Cook would emerge as the company's leader. But Jobs and
company remained silent on the matter publicly, rolling out the transition of power with the
kind of terse messaging that might accompany a new iPod announcement.
Said Gallo, "Very few leaders really understand the extent to which they can control the
message, so too often you have the CEO saying one thing, the PR department saying another,
and managers within the company contradicting all of that." Leaders at every level need to reign
in their words and get clear about their messaging for the good of the company, said Gallo.
"I don't think it's necessary to be so secretive," Gallo said of Jobs' characteristic stealth. "But it's
absolutely critical to control the message. When Apple got the Beatles on iTunes, the whole
front page of their website was just a picture of the Beatles and the words, 'The Beatles. Now on
iTunes.' Steve Jobs used the same kind of simple language in his resignation. He stuck to the
central message he wanted to communicate."
Transition proactively. Gallo observes that, when we look back, we see that Steve Jobs has
been gradually handing off power and public exposure to other key personalities within Apple
since news of his health woes first surfaced. "I noticed that, really, Tim Cook began doing a lot
of the presentations for new product announcements. Phil Schiller and Jonathan Ive stepped into
the limelight more," Gallo said.
While the media cameras at any given product launch remained focused on Jobs, Jobs began
presenting the other personalities behind Apple in a more concerted way, acclimating the
company, its customers, and the media to the look and feel of an Apple product launch sans

Steve Jobs. Gallo is confident that Apple's new leaders now have ample preparation to lead the
company forward.
Choose people who can take over your duties, not your personality. It's become hard to
imagine anyone but Steve Jobs leading Apple, but that perception likely doesn't match reality,
according to Gallo. "There's no better pitch man than Steve Jobs," Gallo said. "But Steve has
done a great job of assembling a management team that can lead the company in a way that's
consistent with his vision."
Pointing to the design aesthetic of Jonathan Ive and Tim Cook's apparent sympatico with Jobs'
laser-like focus on user experience, Gallo sees the leadership traits of Steve Jobs distributed
throughout the company's new leadership, rather than packed into the personality of a Steve
Jobs imposter. "I think he's done as good a job as he can do at choosing people who can take
over his duties," said Gallo. "But there's nobody else like Steve Jobs."
At the 2011 InformationWeek 500 Conference, C-level executives from leading global
companies will gather to discuss how their organizations are turbo-charging business execution
and growth--how their accelerated enterprises manage cash more effectively, invest more
wisely, delight customers more consistently, manage risk more profitably. The conference will
feature a range of keynote, panel, and workshop sessions. St. Regis Monarch Beach, Calif.,
Sept. 11-13.

An Outsider's View of Apple's Succession Plan

On Aug. 24, Apple, Inc. announced that Steve Jobs, its iconic co-founder, was resigning from
his CEO role and assuming the chairmanship. Tim Cook, Apples head of operations, would
become the new CEO. Investors took the news in stride, with a slight dip in stock price
followed by a rebound.
For those of us who think that this change might have been done in haste at a time when
Apples hand was forced due to Jobs health, think again. To gain insight into Apples
succession process, my firm, Farient Advisors, analyzed Apples history since it went public in
1980, and plotted the companys market capitalization, certain noteworthy events, and of
course, occupants of the top jobs. Please see the accompanying exhibit below (click to enlarge).

For many of us who grew up with Apple, we feel as though the companys history is indelibly
etched in our minds. After all, many of us learned how to use a computer on an Apple. We
lived through the drama surrounding Apple for years, played out in the media by the corporate
paparazzi, as it tried to find its raison detre. But the timetable I constructed refreshed my
memory. It reminded me that neither Jobs nor Wozniak, the companys co-founders, was CEO
when the company went public. It further reminded me that within a few years of Apples IPO,
John Sculley was appointed as CEO in an attempt to professionalize management, driving
Jobs out of the company. These were not Apples glory days, as the company muddled along
with a relatively flat market capitalization for more than a decade. But then, in 1997, Apple
purchased Jobs company, Next, and brought him back from exile as interim CEO.
One of Jobs first acts as CEO was to hire Tim Cook as chief of Apples worldwide operations,
setting the stage for the companys spectacular turnaround. Jobs and Cook proceeded to forge a
strong partnership, and rescued the company from its death spiral, which took it from $11
billion in revenue in 1995 down to less than $6 billion in 1998. Jobs reinvented the company
by practically disrupting the entire music industry and innovating wildly successful products.
Meanwhile, Cook made the operations sing by streamlining facilities and the supply chain, all
of which dramatically increased margins. Cook also had a test run as CEO in 2009 and then
again in 2011 when Jobs was managing his health situation. Under their leadership, the
company went from its nadir to a remarkable $100 billion today.
So, the question is, Did Apple do a good job of succession planning? Judging from the result,
I think the answer is, yes, although the process may not have been too pretty along the way.

Lets look at the facts. Cook was an adjunct to Jobs for the better part of a dozen years, and he
was test driven as CEO at least twice. In addition, Jobs will serve in the chairman role going
forward, allowing the company to capitalize on his formidable genius and vision. So, it is no
wonder that this transition turned out to be a yawner from an investor perspective.
Many also are asking whether Jobs can really be replaced. The answer is, Of course not. He
is one of a kind. But the better question is, Does the current company, with $100 billion
revenue, really need the same leadership as the company that grew from $10 billion to $100
billion? And once again, the answer is, Of course not. The company will need more of
Cooks influencing and operating skills to bring the organization forward.
So, ultimately, the question is, Is Cook the right successor? Time will tell, but the question
underscores once again that this really is a game of succession, and not replacement.
Robin A. Ferracone is the Executive Chair of Farient Advisors, LLC, an independent
executive compensation and performance advisory firm which helps clients make
performance-enhancing, defensible decisions that are in the best interests of their
shareholders. Robin Ferracone is the author of Fair Pay, Fair Play: Aligning Executive
Performance and Pay, which explores how companies can achieve better performance
and pay alignment. She can be contacted at robin.ferracone@farient.com.