Succession essay

Question 1: Succession issues and challenges require advance thought for proper training and preparation. Assume succession is your planned exit strategy and discuss the necessary preparation. Refer to the information in the Federal Reserve booklet “Will You Be Ready for the Finish”. Provide at least two references.

Succession should start with the clear identification of the succession strategy. In this regard, I would conduct the assessment of the potential of employees working in my company first. After that I could determine whether I could apply the hiring from within strategy or I should focus on the involvement of professionals from outside of the company to complete the succession. Ideally, I would focus on the development of the internally-oriented succession, when employees within the company obtain extensive training, develop their professional skills, acquire experience and come prepared for training (Cannella & Shen, 2001). To prepare the succession, it is necessary to develop the succession plan that meets the chosen succession strategy. I would focus on the identification of key goals of the company to determine what skills are required for those, who succeed. Then I would develop respective training programs to prepare succession. Employees with the greatest potential could be enrolled in the training program and succession plan (Friedman & Singh, 1989). Then, when they reach the required level of development, the succession will come in action.

Question 2: Research succession planning. Locate and summarize one article. Be sure to include the URL in your reference. Provide at least two references.

The article “Will Succession Planning Increase Shareholder Wealth? Evidence from Investor Reactions to Relay CEO Successions” by W. Shen and W.W. Cannella Jr. focuses on the relay succession planning. They conduct the in-depth analysis of responses of share holders to different manifestations of the relay succession planning and conclude that shareholders respond positively to the apparent heir appointment and succession. However, some researchers (Davidson, et al., 2001) believe the apparent heir appointment may have a negative impact on shareholders’ wealth and attitude to succession. They also respond positively to the external CEO appointment in terms of succession (Shen & Cannella, 2003). However, shareholders response negatively when the CEO position is succeeded internally without heir appointment (Shen & Cannella, 2003).