Running Head: MANAGEMENT

Succession Planning
[Name of the Writer]
[Name of the Institution]

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Succession Planning

Introduction
In modern times, succession planning is considered an important task and is an essential
part of doing business. For any business, change in CEO is an important practice and a new CEO
can impact the organization, its employees and its performance. Therefore, to avoid the
uncertainties related to the change in CEO, the concept of succession planning is important.
Succession planning involves an on-going dynamic process. In this process, organization
identifies as well as trains and develops high talent that can be taken to the position of CEO
without any disruptions. The paper aims on discussing the impact of a new CEO, ways that
organization can use to restructure its performance model(s) and how to mitigate resistance to
change among organization groups. The paper will also discuss how changing the guard (CEO)
will affect office politics and team performance along with the strategies that organizations can
use to mitigate resistance.
CEO change presents less upside potential and more downside risk. Further, unplanned
CEO transitions will create more risk for the enterprise as it could impact the employees and
their performance (Ibarra, 2005). Changing the head of an enterprise is a serious task and it
should be taken seriously by any company. Changing the CEO impacts company board/CEO
relations, company culture, and perceptions from different public outside and inside of the
business. All this disruption can impact the performance in a neutral, positive or negative
manner. Management of this issue is an important task and successful companies manage this
process well by taking advance actions, designing set of processes and milestones.

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When we talk about the change in CEO and its impact, the research shows that its not the
CEO that matters but its the leadership strategy that matters (Ibarra, 2005). CEOs come and go,
therefore organization needs to restructure themselves and develops leadership in a
comprehensive way. CEO is a very important person but research shows that effective business
performance is driven from a much deeper level i.e. from the leadership strategy. Organizations
should focus on the long term performance and it comes from the constant development of
leadership at all level and leadership culture.
In the current business practices, organizations are restructuring themselves and are
directly linking leadership strategy to business strategy for high performance. In this regard, it
does not matter who the CEO may be, because at the mid level or supervisory level, operational
execution takes place. The business thrives when these individuals are coached, well aligned and
trained. Building a leadership development program is considered as an important practice these
days and high performing companies understands this. These high performing companies are
putting their resources on such programs to uniquely supports, trains and selects individuals who
drive their businesss strategy. With this, they can build execution into their culture.

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Source: Forbes, 2012.

In addition, high performance does not rely on the CEO only, but develops leaders at all
levels. They understand that its the supervisors, line managers and the middle managers who are
the backbone of organization and who make things happen (Rothwell, 2010). According to the
Forbes, best organizations develop leaders from the bottom and like an inverse pyramid; senior
executives serve the needs of line leaders (Forbes, 2012). Companies these days are practicing
the philosophy which says that everyone is a leader and that everyone is responsible for making
best decisions of the entire organization.
When changing of the guard takes place in any organization, this will lead to both
positive and negative consequences in the enterprise. Changing of the guard will affect the office
politics and team performance. Its because employees are committed and dedicated to the
teachings and actions of CEO (Naveen, 2006). They trust him for his decisions and are mostly
satisfied with his directions and teachings. However, when they heard about the change in CEO,
this will create tension and raise so many questions in the mind of the employees. In this way,

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employees will get the topic of discussion that may increase office politics. This will create
groups in the organizations because some will be supporting the change and some will not.
Those who are loyal and like the current CEO will not want the CEO to change and vice versa.
Office politics is a negative thing and can affect the whole organization. Office politics affect the
performance of the organization on the whole because employees will form groups and will
become de-motivated, and it can lead to frustrated employees in the end. In order to avoid such
thing, succession planning is required. CEO succession helps the organization to avoid all this
negative activities and sustain excellence by doing seamless transitions from one CEO to the
next. Effective CEO Succession requires organizations to design a well defined program in
which all the capable candidates can be assumed to the position of CEO whether through a
planned transition or an unexpected event (Rothwell, 2010). If we look at the top successful
companies in the world, all of them are already practicing and doing succession planning to
remain effective and efficient in the market. This has reduced their risks and has allowed them to
make long term strategies for a better future.
When it comes to change, whether a change in the management (CEO) or change in the
workplace, steadfast and most loyal employees will put up resistance. It happens or we can say
that its human nature, as we humans cannot accept the change easily until or unless we are told
about the positive consequences of the change. Change in upper management or CEO may
impact the organization, its employees and its performance. However, there are many strategies
that can be used by the management to combat this resistance and make sure that employees
should remain committed to overall success while changes in the management or in the
workplace. This type of reassurance will keep them on their goals with a new program or CEO
than they have in the past.

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The first strategy that management can use is open conversation. Open conversation
with the employees is one of the best ways to get them to stop resisting change. Management
should talk to the employees about the change, why it is required and how they and the whole
organization will benefit with this change? Try to give and inform as much detail as you can and
allow them to have open conversation and take feedback. This may takes time but it will worth it
in the end.
The other strategy is to ensure employees participation. Allow employees to have input if
you are making major changes such change in management, change in policies or processes etc.
This process should be more proactive than just simply allowing the employees to express their
feelings or thoughts. Management should give room to the employees and allow them to
influence the changes with their own creative ideas, approaches and decisions.
In addition, management can also offer more resources to employees as a part of their
strategy. Give them training, workshops and other resources so that they can better adjust and
excel in the changed environment. Provide all possible help and support to the employees to help
them remain efficient and effective. This will lead employees to not only stop resisting, but feel
hopeful and encouraged anytime or during any changes.
Last but not the least, timing is also an important that works as a strategy. Do not try to
implement major changes all at once. This will create frustration and low morale in the
employees. Therefore, timing is everything and especially when it comes to change. So, if
management will try to implement the changes too quickly than employees are more likely to
resist.

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Conclusion

From the above discussion it can be concluded that succession planning or CEO
succession is an important part of doing business. Things are changing so quickly, no matter how
organizations future appears, succession planning is a need of business in the modern times.
Change in CEO is an important task and he has a huge responsibility to follow but one must
understand that its the CEO who plays a role, but not alone. Therefore, organizations need to
practice such systems, culture and approaches (like succession planning) to make their business,
a high performance working business for a bright productive future.

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References

Blouin, A. S., McDonagh, K. J., Neistadt, A. M., & Helfand, B. (2006). Leading tomorrow's
healthcare organizations: strategies and tactics for effective succession planning. Journal
of nursing administration, 36(6), 325-330. Data Retrieved from
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prvurl=/data/subscriptions/jqp_sub/2005/fall/jqp1005gaffney.pdf on 18 May, 2014.
Forbes (2012). It's Not The CEO, It's The Leadership Strategy That Matters. Data Retrieved from
http://www.forbes.com/sites/joshbersin/2012/07/30/its-not-the-ceo-its-the-leadershipstrategy-that-matters/ on 18 May, 2014.
Ibarra, P. (2005). Succession Planning. Public Management. Data Retrieved from
http://mejorandogroup.com/assets/IbarraSucPlanning.pdf on 18 May, 2014.
Naveen, L. (2006). Organizational complexity and succession planning. Journal of Financial and
Quantitative Analysis, 41(03), 661-683. Data Retrieved from
http://journals.cambridge.org/action/displayAbstract?fromPage=online&aid=4204876 18
May, 2014.
Rothwell, W. J. (2010). Effective succession planning: Ensuring leadership continuity and
building talent from within. AMACOM Div American Mgmt Assn. Data Retrieved from
http://books.google.co.uk/books?
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v9jFXK&sig=5dfM-8qCz1p0cPABw0cPgXFNSAA on 18 May, 2014.