Mohammad Aamir Khan

Objectives

•To give a brief insight about GE

•To understand the meaning of Succession Planning

•To know Benefits of Succession Planning

•To understand the process of Succession Planning at GE

Introduction : General Electric

•Established in 1892, Thomas Alva Edison merged his EELC with

Thomas Houston Electric Company to form General Electric.

•Business Structure of GE:

Commercial Health
Transportation Infrastructure Energy
Finance care

•Forbes ranked GE as the world’s largest company. The company has

323000 employees around the world

•Current CEO Jeff Immelt, September 2001

What does Succession Planning mean

•Succession Planning is process for identifying

and developing internal employees with the
potential to fill critical organizational position
Benefits of Succession Planning

•It reduces risk

•Smooth business continuity

•Encourages “hiring from within”

•Improve staff morale

 Succession Planning process at GE

Understand
Development
Need

Ready Identify
For Possible
Movement Successor

Promote Develop
and And Train
compensate Successor
STEP 1: Understand Development Need

•As only in the rarest cases will future challenges require the same skills
that worked in the past

•What type of skills will be needed to lead the company pass hurdles
in present & future.
STEP 2: Identifying Possible Successor

•Identification of a small number of people who could be made ready

Within four to five years

•List of essential skills includes Integrity, Vision, Leadership, Experience

Fairness, Energy, Appetite for Enhancing Knowledge etc.
STEP 3: Develop And Train Successor

•Rotations in different functional areas

•International assignments

•Inviting candidates to give presentations to the board

•Candidates describe their vision for the company's next five years.

•A clear winner will be revealed

 STEP 4: Promote And Compensate

The board make clear to internals and externals:

•That he or she has begun to develop relationships with board members

•Had sufficient time with the outgoing CEO

•Has a sense of the areas that represent burning fires requiring immediate
action.
STEP 5: Ready For Movement

•After ensuring the above things new Successor his is given the
throne.

•The two most critical practices here are for the board and the
Successor to agree on a plan for the first year that includes
measurable metrics and milestones and the active engagement
of the entire leadership so as to be sure everyone is working from
the same playbook
Thank You!