Succession management is the process of identifying and developing internal employees with potential to fill key leadership roles in the future. It helps ensure continuity and prepares employees for advancement. The process involves aligning plans with strategy, identifying needed skills, selecting high-potential employees, providing development opportunities like rotations and training, and monitoring progress. It has evolved from short-term replacement planning to a broader, long-term focus on developing talent pools and competencies.

1. SUCCESSION
MANAGEMENT

2. What is Succession Management?
Succession management is the process of ensuring that
pools of skilled employees are trained and available to meet
the strategic objectives of the organization.
It is a tool to identify employees who have the potential to
assume key positions in an organization and to prepare
them for the future.

3. Importance of Succession
Management
 Ensure continuity in leadership by developing the next
generation of leaders.
 Increase the talent pool of promotable employees and
provide increased opportunities for high-potential
workers.
 Identify replacement needs for targeting necessary
training, employee education and employee
development.

4. Importance of Succession
Management
 Contribute to implementing the organization’s strategic
business plans.
 Help individuals realize their career plans within the
organization.
 Encourage the advancement of diverse groups.
 Improves employee’s ability to respond to changing
environmental demands.

5. Importance of Succession
Management
 Improve employee morale.
 Cope with the effects of voluntary separation
programs.
 Decide which workers can be terminated without
damage to the organization.
 Reduce headcount to essential workers only.
 Cope with the effects of downsizing.

6. Evolution of Succession
Management
Replacement planning has evolved into succession
management by
broadening the focus
expanding the time horizon
creating a talent pool of replacements and
improving the evolution system.

7. Evolution of Succession Management
Broader Focus
• Updated table of
employee who
might be
nominated if a
need arose
• Focused on the
high potential
candidates
• Stable future &
long-term goal
Time Horizon
• Traditional
approach; short-
term
• Long-term
• Focuses on
future
Talent Pools
• Pool of talents
• Flexible job
skills and
competencies
• Corporate
resource
• Internal &
external
candidates
Rating System
• Traditional;
single rater
• Succession
management
several raters

8. Evolution of Succession Management
Differences Between Succession and Replacement
Replacement planning is the process of finding
replacement employees for key managerial positions.
Factors Replacement Planning Succession Management
Environment Stable Dynamic
Focus Jobs Strategy
Time Frame 6-12 months 2+ years
Selection Criteria Job experience Competencies
Appraiser Immediate manager 360 degree feedback
Swlection Pool Internal Internal and external
Successors Stated individuals Talent tools
Development Limited Flexible, multiple

9. Succession Management Process
1
Align Plans
with Strategy
2
Identify Skills
and
Competencies
3
Identify High-
Potential
Employees
4
Provide
Developmental
Opportunities
and
Experiences
5
Monitor
Succession
Management

10. Step 1: Align Succession
Management Plans with Strategy
• Organizations must start with the business plan
• Using environmental scanning, managers try to predict
where the organization will be in three to five to ten years

11. Step 2: Identify the Skills and
Competencies Needed
1. Job‐Based Approach
2. Competency‐Based Approach

12. Job‐Based and Competency‐Based
Approaches
Job Based Approach –
• focus on duties, skills, job experience, and responsibilities
required to perform the job
• Not adequate since jobs change rapidly
Competency‐Based Approach –
• focus on measurable attributes that differentiate
successful employees from those who are not
• Hard and soft skills
• Produces more flexible individuals

13. Types of Competencies
1. Core competencies
2. Role or specific competencies
3. Unique or distinctive competencies

14. Step 3: Identify High‐ Potential
Employees
Organizations use several approaches to identify
managerial talent, including the following:
• Temporary replacements
• Replacement charts
• Strategic replacement
• Talent management culture

15. Step 4: Provide Developmental
Opportunities and Experiences
• Peter Drucker states that: “Most managers are made,
not born. There has to be systematic work on the supply,
the development, and the skills of tomorrow’s
management. It cannot be left to chance.”

16. Management Development
Methods
• Promotions
• Job Rotations
• Special Assignments
• Formal Training and Development
• Mentoring and Coaching

17. Promotion
• Promotion – an employee’s upward advancement in the
hierarchy of an organization

18. Job Rotations
• Job rotations – a process whereby an employee’s upward
advancement in the hierarchy of an organization is achieved
by lateral as well as vertical moves

19. Mentors
• Mentors – executives who coach, advise, and encourage
junior employees

20. Step 5: Monitor Succession
Management
• Corporations with strong succession management programs are
higher performers in revenue growth, profitability and market share
• HR metrics can be used to help monitor succession management

21. Approaches to the identification
of managerial talent

22. Employee Role in Succession
Management