SUCCESSION PLANNING Promoting Organizational Sustainability Edited by Pamela A. Gordon, Julie A. Overbey Succession Planning Pamela A. Gordon • Julie A. Overbey Editors Succession Planning Promoting Organizational Sustainability Editors Pamela A. Gordon Julie A. Overbey University of Phoenix University of Phoenix Pembroke Pines, FL, USA Elkhorn, NE, USA ISBN 978-3-319-72531-4 ISBN 978-3-319-72532-1 (eBook) https://doi.org/10.1007/978-3-319-72532-1 Library of Congress Control Number: 2017964619 © The Editor(s) (if applicable) and The Author(s) 2018 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover illustration: Yagi Studio / Getty Images Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland To Connor Anthony Gordon, the Gordon family’s succession plan. All my love. P.A.G. To my brother Thomas Keenan and my sister Linda Bayes. You are my heroes and I love you both. J.A.O. I ntroductIon “He who fails to plan is planning to fail.” This quote, and others similar to it, are attributed to Benjamin Franklin, Winston Churchill, and author Alan Lakein. Regardless of the source or version, the statement is an apt introduction to the consideration of succession planning. The lack of a sophisticated and comprehensive succession plan for an organization can lead to confusion, turmoil, and in some cases cessation of the business. It is not only one type of business that requires careful succession plan- ning. Leaders in all types of organization including for-profit, non-profit, healthcare, governmental, and educational institutions need a clear path to select, develop, plan and promote new leaders. The authors contributing to this book have considered the many elements of succession planning, the varying environments, associated challenges, and rewards accompanying it. The examples in this book are all related to succession planning efforts within the United States of America and based upon current American business practices. In Chap. 1, Kevin Bottomley introduces the concept of sustainable lead- ership as an interdisciplinary method to accomplish succession planning. The concept of sustainable leadership provides a framework for leaders to develop specific strategies and tactics to address the long-term needs of the organization. The chapter contains vignettes to help clarify specific points. Irina Weisblat provides a literature review in Chap. 2 that considers theo- retical foundations, research on the topic, and best practices. This chapter also illuminates strategies and tactics for the development of future leaders. In Chap. 3, Rick Johnson, Donna Pepper, Joan Adkins, and Alexius Emejom discuss succession planning from themes that emerged from vii viii INTRODUCTION document data. Their goal was to identify succession processes and strategies that assist candidates with future succession, such as value-added competencies, specialized knowledge, leadership capabilities, and performance- based success. Joseph Keller focuses on the implications of succession planning man- agement in Chap. 4. He emphasizes the concept that succession manage- ment includes recruiting, talent management, employee training, and employee retention. He demonstrates how management at all levels is integrated into the succession planning process. Suzanne Richins emphasizes the critical need to support talent develop- ment of professionals in the healthcare industry in Chap. 5. She also explores how leadership training programs are used as part of a succession planning process. In Chap. 6, Donna Kjellander examines succession planning for the small business. She analyzes the options for a family owned business for succession planning related to exploring and handling family dynamics, and whether to consider an internal or external candidate, along with rec- ommended ideas for training the future successor. Lillie Hibbler-Britt and Anna Wheatley investigate succession planning as it relates to family-owned businesses through a review of literature and discussions with family-owned business presidents. Chapter 7 focuses on the factors that affect the ability of family-owned businesses to participate in succession planning by concentrating on a comparison across countries and gender. In Chap. 8, Sofia Loomis presents succession planning practices in a federal agency. The author’s case study provides insight on how succession planning occurs within the Department of the Navy to adequately facili- tate the forecasted high number of retirements and retirees’ knowledge transfer between 2016 and 2021. Luis Gallardo’s Chap. 9 reveals the impediments to succession planning caused by variables such as politics, stakeholders, intra-organization dis- juncture, demographics, and legal constraints. He offers recommenda- tions to ultimately improve public sector succession planning. Succession planning within the business information technology (IT) arena is presented in Chap. 10 by Loyce Chithambo. A warning is expressed throughout the chapter that without proper succession plan- ning and solid data preservation strategies companies are at risk of losing the knowledge acquired by experienced business information technology individuals and teams. INTRODUCTIO N ix In Chap. 11, Tony Ray Ruffin focuses on reviewing succession plan- ning strategies for leaders in healthcare organizations. The goals of this chapter are to identify common themes and strategies for best practices in the twenty-first century to educate and assist potential, current, and future leaders in healthcare organizations using succession planning for contin- ued growth and future development. Cheryl Anderson introduces the feminist perspective of implicit bias in succession planning in healthcare in Chap. 12. While more women work in health care than men, there is gender inequality with more men in lead- ership roles. The current systems in place tacitly endorse males rising to leadership roles supported by succession planning beliefs. The chapter explores disruptive leadership, or not following the status quo, which may be more beneficial to healthcare organizations. In Chap. 13, Tamara Reeves considers research-based best practices and perspectives on the need for small business owners to engage in suc- cession planning within the healthcare sector from a practical perspective. The author presents known barriers for succession planning within the healthcare sector for small business owners and recommendations for overcoming them from the perspective of a small business owner. Lili Melton’s Chap. 14 contains a rationale for kindergarten through higher education (K12–HE) succession planning research to be grouped in one educational framework, Planning, Recruiting, Empowering, Preparing, Guiding, and Off to work (PREPGO). This framework for the educational sector is an approach to assist leaders with organizational sus- tainability and to promote solutions to educational challenges. Case studies in succession planning for K-12 school districts are pre- sented by Arfe Yucedag-Ozcan and Sharon Metcalfe in Chap. 15. Research supports the claim that strong and stable leadership is one of the funda- mental elements that influence school effectiveness and student achievement. Vernesia Wilson’s Chap. 16 offers empirical studies that address succes- sion planning models/maps, ethical considerations, and best practices for utilizing these models within employment sectors. Results from the col- lected data may help guide organizational activities and strategies related to retaining employees while also planning for succession. In Chap. 17, Anthony Carbo and Karin Storm promote ethics as a vital component of positive succession planning. Throughout the chapter, the authors posit that prospective leaders should be transparent about the general moral principles they believe should take priority. x INTRODUCTION Paul Wendee, Fiona Sussan, and Ravi Chinta provide the epilogue to succession planning in Chap. 18. The authors propose a value driver the- ory approach to understanding the enterprise/shareholder value creation process, which is an integral part of succession management. They describe succession planning as a strategic process and discuss its impact on the value creation capability of an organization. We hope our readers find this book on succession planning informative and beneficial. The topic coverage that spans the organizational disciplines of business, education, and healthcare makes this a comprehensive tome on the subject. We hope that following the strategies, tactics, and best practices presented here help to formalize the succession planning struc- ture in your organization. Pamela A. Gordon Julie A. Overbey c ontents 1 Developing Sustainable Leadership Through Succession Planning 1 Kevin S. Bottomley 2 Literature Review of Succession Planning Strategies and Tactics 11 Irina A. Weisblat 3 Succession Planning for Large and Small Organizations: A Practical Review of Professional Business Corporations 23 Rick D. Johnson, Donna Pepper, Joan Adkins, and Alexius A. Emejom 4 Succession Planning Management 41 Joseph Keller 5 Succession Planning in Non-Profit Healthcare Organizations 49 Suzanne Moss Richins 6 Succession Planning in the Small Business: The Good and the Bad 63 Donna M. Kjellander xi