Case Study 3: How to Succeed in Business

Point 1:

Investment opportunity and benefit often depends on the face of top-management,

especially in a large firm.

Point 2:

Investors feel unsecured / worried about their investment and become dissatisfied, if
they find:

a) Spread of Rumors
b) Top management being absent at work
c) Company’s reluctance in handling such situation
d) Lack of transparency in the release / flow of information

Point 3:

Successful business must fill the position of the top management through succession
planning when they leave.

Point 4:

Successful planning is not enough and an only a partial process. Rather, Successful
development should be considered instead, since company’s needs change frequently
and people need to develop themselves which successful planning does not ensure, but
is ensured by successful development.

Point 5:

Successful development includes the following:

a) Leadership development
b) Leadership tracking
c) Developmental opportunities

Point 6.

Successful development, also referred as successful management, aims to match

organizational needs with individual aspirations.

Pont 7:

So succession management is not a one man’s show. Succession management

process involves a team of: (a) Human resource directors and (b) Strategic planners
Point 8:

Succession management is ensured when companies develop and promote internally.

That is why, best practice firms take long time to create developmental activities. This is
where the human resource management (HRM) gets involved.

Point 9:

Succession development / management process should be transparent. Companies

should disclose what training and development activities it has taken as well as planned
to take for succession planning / development.
Answer to Case Questions

Question 1:

Succession planning is undertaken as an alternative plan to fill the position of top

management when they leave temporarily or permanently.

Thus, it can be regarded as a contingency planning, since it accommodates the needs

of contingent / alternative situation.

Succession planning process can be regarded as a crisis management process under

the following circumstances:

i) When one or more than one of the top management decide to go for a casual
leave, sick leave.
ii) When the primary key person also decides to leave at the same time with the
top management or falls in unprecedented situation at the same time, then
the secondary key person can fill in the position

Answer 2:
Answer 3: