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Example Case Studies
Learn valuable lessons from these organisations:
American Red Cross
Succession planning in a large service organisation
The American Red Cross recognised that their succession plan needed to allow candidates to take personal responsibility for their own development and began a comprehensive succession planning process.
The organisation:
- Audited about 300 staff serving at the level just below the president’s direct reports;
- Overlaid the findings with a thorough assessment of current and future business needs;
- Gained an understanding of organisational talent, identified gaps determined whether to fill vacancies through internal development or external hiring;
- Defined the competencies for each individual on the succession plan; and offered a plan for continual employee development;
- Linked the performance-development process to the organisational plan;
- Enabled employees to communicate their career goals quite specifically which were documented and became part of the individual’s personnel record;
- Involved the company's chief diversity officer who was able to draw attention to existing company resources which helped develop exceptional women and people of colour - employees who might have otherwise escaped attention;
The career plans developed were recognised as very focused and rigorous ones, which had the benefit of directly engaging the employee.
Alcan Smelters & Chemicals Ltd
Succession Planning used to retain top talent and to provide better HR services
The merger of the Alcan & Alusuisse Groups (combined workforce 48,000 worldwide) accelerated the need for succession planning to facilitate the retention of top talent, and the identification and promotion of high performers. The purchase of a Web-based succession-planning tool facilitated logging on by employees world-wide for Alcan Smelters & Chemicals Ltd. The system was linked to existing performance management software, and details for 4000 employees were loaded. The resulting database is a powerful HR tool, with employee career interests, potential, development plans, and mobility information being readily available for prompt reporting under multiple categories. Acceptance of the new systems was promoted through implementation from the topdown. Benefits included:
- Costs saved by filling jobs internally;
- Staff compatibility risks were reduced;
- Jobs filled quicker than by external advertising process;
- HR able to give focus to value-added services.
Dole Food Co Inc
Succession Planning used to identify suitable internal candidates for key positions.
Succession planning, or progression planning, was used by Dole Food Co Inc to match internal candidates to key positions, or alternatively to identify the need for external candidates. It was desired to retain top people within the company because of (a) the scarcity of talent available, and (b) the time and costs involved in bringing new personnel up to speed. To achieve this Dole decided to launch a succession planning process supported by web-based software where candidates filled out a resume, including career interests, and noted any mobility restrictions, and finally assessed themselves on the following four competencies:
- Multi-functionality (cross training); and
The system was automated to prompt the appropriate managers and directors. It was also intended to use the information to create career development and training plans for each individual.
Prudential Financial
Succession planning in the financial services industry.
In 1998 Prudential Financial, a USA based financial services company, initiated a complete overhaul of its succession planning system. For six months a corporate succession planning team collected ratings and promotion factors for all executives down through several levels. Following top-level discussions a number of succession planning initiatives were taken, including:
- A leadership series to improve strategic leadership skills, partnering, and conceptual thinking;
- A Fast Track Management Programme using rotational assignments and training opportunities to build skills in leadership competencies. Participants are recruited from the leading colleges and universities as well as from inside the company;
- Annual meetings between the Chairman and the Executive Vice President HR with divisional executives to review succession plans and to identify potential successors for critical positions, key high-performers and high-potential individuals;
- Action plan development to address any identified gaps.
Results identified in 2002 included:
- The best talent was identified, the development of those with the highest potentials was speeded up, and a larger pool of potential successors for critical jobs were earmarked;
- The creation of a strong focus on developing more successors for critical positions and improving ethnic and gender diversity;
- Encouragement of cross-division and crossfunctional development; and
- A company commitment to keeping it simple and to developing plans that work - even under conditions of surprise and change.
Wellpoint Health Networks
Succession planning scores big in US Health Care organisation.
Well Point Networks, a USA provider of health care, decided in 1997 to begin to address the issue of planning to replace key executives. The company determined its plan needed to cover some 600 managers and executives over five management levels. The company first identified its strength or weakness at each position and then combined succession planning and performance appraisals into one annual process:
- In January each year the 600 participants each wrote a self-evaluation;
- A performance appraisal, a core-competency rating, and an assessment of the employee's potential for promotion was added by the employee's supervisor - the assessment included an opinion about which positions an employee might be suited for and when the employee might be ready to make a move, and the supervisors views on who might be capable of replacing the employee, if promoted. Objectively, the assessment also contained data on the employee's education, language skills, experience, and current job responsibilities;
- Bias was offset by 'challenge sessions' for supervisors conducted by executives in each business group; and
- The data was used to create a profile for each employee and these were assembled into organisational and succession charts and 'whatif' scenarios are able to be played out.
The benefits of this programme included:
- Well Point achieved a high 86% internal promotion rate in 2000;
- In 2001 all 11 senior positions that became available were filled from within;
- The company has reduced its turnover rate by 6% since 1997;
- The company has saved $21 million on recruitment and training expenses; and
- Positions that used to take 60 days to fill are now filled internally in 35 days.
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