Like growth strategies through M & A, strategies about Talents, and specially when it comes to future organization leaders, must be carefully thought and prepared.
If, according to different studies, it is important to differentiate what the authors call “Replacement planning “ and “succession planning”, it also means using different criteria and well defined approach to align with global strategy.
As highlighted in a study issued by Hewitt about two very distinct experiences (Hewlett Packard & Apple), the choice of successors whether they are chosen from inside or hired from another company may have very contrasted effects, ether on the company share value or on its human capital.
For instance, the report says, the Apple strategy to replace Steve Job by timothy Cook after he spent 13 years with the company in different positions, with a mentor and through a lot of professional challenges and responsibility to build experience, had a very positive impact with a significant 140 millions $ impact in stock value.
On the opposite, the option of HP to change its Leader 4 times in six years proved to have negative impact on business outcomes as well as on the organizational climate.
Though there is a tendency to prefer early High Potential development to prepare them for succession in big companies, only 88% of the biggest and only 53% of the others consider that they have a sufficient pool of talent to successfully take CEO responsibility.
In addition, in a world where change appears to be the only constant fact, the demand for Leaders able to inspire transformational management justifies the increasing need for executive search to rapidly identify High Potential for early integration in a succession planning process or to find acknowledged talents, immediately available to lead a company towards success.
SAM & PARTNERS, specialized in Healthcare business, offers its expertise in Assessment and executive search based on competency and discrete approach.