What Could We Learn from the Successful and Failure of Succession Planning Using Real World Example?

What could we learn from the successful and failure of succession planning using real world example?

Lesson learned from the success of succession planning

General Electric (GE)

General Electric (GE) is a corporation incorporated in New York and headquartered in Fairfield, Connecticut. They participates in markets that includes the generation, transmission and distribution of electricity, lighting, industrial automation, medical imaging equipment, motors, railway locomotives, aircraft jet engines, and aviation services.

GE adopted succession planning from mid-19th century and focuses it’s’ succession planning on “Talent Differentiation” approach. They will move the rising stars across all its business areas. Tools that GE used are: Vitality Curves, 9 Blocks, Accomplishment Analysis.

Stephen Unger, a managing partner in the Los Angeles office of Heidrick & Struggles, an international executive search firm mentioned that GE was the Super Bowl of CEO succession planning. Succession planning can be the difference between successfully moving a company into its next phase and any number of disasters, including productivity losses, the erosion of shareholder confidence and employee exodus (Lisa Girion, 2000).

Succession planning just is not only useful for the organisation owns benefit but it could also increase the marketability of the talent. "Most companies would be glad to hire anybody in the GE top 10," said Jeff Christian, CEO of Christian & Timbers Inc. (Lisa Girion, 2000).

McCormick & Co. (MKC)

MKC manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavourful products to retail outlets, food manufacturers, and foodservice businesses. Their previous CEO, Robert Lawless made succession planning an integral part of his job before turning over the CEO position to Alan Wilson, a successor who had been groomed for five years (William J. Holstein., 2008).

Lawless share his experience in succession planning during...