Using Succession Management wisely

Strategic Finance, March, 2002

The American Productivity & Quality Center (APQC) has just released a new best practices report on "Succession Management: Identifying and Cultivating Tomorrow's Leaders" that reveals how world-class companies find the most talented individuals, prepare them for leadership positions, and monitor their professional growth.

"Consistency and continuity often define successful organizations," Lou Cataline, APQC project manager, said. "Developing such qualities requires effective leadership over time, which necessitates seeking potential leaders and preparing them for future roles continuously." With the impending retirement of millions of baby boomers and increased demands for diversity, successful succession management has never been more important.

APQC studied the practices of more than 20 leading organizations, including Dell Computer, Dow Chemical Company, Eli Lilly and Company, PanCanadian Petroleum Limited, and Sonoco Global Products. The report results focus on four major issues: deploying succession management programs, identifying talent pools, engaging future leaders, and monitoring and assessing their efforts.