Analysis of Succession Management at General Electric
I tend to believe that succession management can succeeds in virtually every organization if done in the right way. High impression succession management does not result from copying whatever other companies are undertaking. It needs thinking through different lines for it to succeed. The following key questions will guide any company that decides to undertake succession management. The goals of succession management might be as small and narrow as who is going to replace the CEO after she/he retires. They can also be as wide and broad as how can a sturdy stream of high performing talent be maintained across every critical job in the organization.
Much as General electronics succession process has been effective and successful, moving people from one job to another after two or three years had its inconveniences on the particular employees. To begin with, the moved person will be at an immediate disadvantage just by being a new face to the new place. Secondly, at the times of recession, one risks being a victim under the scenario of “last in first out”, regardless of their positions at the organization. Another disadvantage with this process is related with health factors. Not every person is comfortable with the climate of every part of the country or continent. As such, their movement to different work locations could cause health conditions problems to them, and this will greatly reduce their contribution to the success of the organization. The salary of the person may remain static regardless of the place where they are posted. This will affect the person’s budget greatly since they may have got used to a certain budget and change in the salary may reduce the budget. Additionally, establishing benefits of pension rights and longer holidays will be difficult since the person will be in a new place every two or three years.
General Electric’s guiding principles are its values for growth which as greatly facilitated success for the succession management. These principles determines the performance of the company at all levels of its operations. In a spirit of continuous learning, the growth values are designed in such a way that they equip leaders with ability to overcome both todays and tomorrow’s challenges. The principles are supported by one unifying principle which states that every GE employee must act in utmost integrity all the time. The values include external focus which basically means that an employee relates to customers and the environment and connects with the stake holders and has knowledge on global issues. Clear thinker; this one embraces and also adapts to uncertainty and connects purpose to strategy in ways which inspire. They use instincts and knowledge decisively. Imagination and courage; this one takes risk, generates innovative ideas and learns both from success and failure and puts up a challenge against bureaucracy. Inclusiveness; Listens to ideas and welcomes them, drives engagement, is humble and collaborates with high respect to cultures and individuals. Lastly, an employee must portray expertise; must have domain expertise and develop themselves and others while at the same time leveraging technology.
The company reinforces these values in several different ways and expects its leaders to have these attributes above all and to demonstrate them in their deeds and words since they are the building blocks of a successful succession management process. In these days rapidly changing business environment, a solid leadership bench strength preceded by a rich talent pipeline is more critical for driving new initiates and maintain a competitive edge. Systematic, ongoing and rigorous succession I believed to be an essential tool for General Electrics and can be of value to other organizations of any type. With these values in place, GE’s succession management approach is doomed to succeed.
The kind of succession planning for this entity includes consistent talent management. This includes recruiting the best candidate, training and developing them and placing them in senior positions whenever they become available. This strategy ensures that only the right people move into the company are placed in the right positions and are prepared for the top position.
Other benefits associated with for succession planning and management is that it ensures that workers are developed on a consistent basis and are ready tofill each available role. This also reduces the necessity and cost of having to hire and train new employees to fill the emerging positions. Furthermore, filling the available vacancies using the existing employees ensures that operations run smoothly and are not jeopardized. This is because in most cases, newly recruited workers including those in the management position would need sometimes to adjust themselves, familiarize themselves with the organizations, the people, processes and operations before resuming their duties.
With potential and ready leaders, the company does not find much trouble when expanding since there are enough leaders to handle various places. In addition, there would be stability in the business operations since the senior authority have enough time selecting this individual or individuals in helping run the operation. The rest will be rest assured that the person is capable of handling a particular position.