Big Changes Ahead For Succession Management

ST. PETERSBURG, FL (March 7, 2007) – According to a recent survey conducted by the Institute for Corporate Productivity (i4cp – formerly HRI), two-thirds of organizations with formal succession planning programs intend to change them in the coming years. A mere 9% of respondents say they have no plans to make changes, and 25% are not sure what they are going to do.


Most of the planned changes in succession planning boil down to three factors: integration, technology, and objectivity. The survey found that among the organizations that intend to change their programs, 75% cite the need to “integrate succession management with other talent management processes.” More than half (55%) plan to use new technologies, and 52% want to make evaluations more objective.


“The results of this survey indicate a very serious concern regarding the shortage of talent. The majority of respondents with succession plans in place said that they suffered from a lack of qualified candidates,” says Jay Jamrog, Senior Vice President, Research at i4cp. “Moving forward, it is going to be critical that organizations more effectively integrate succession planning with development programs in order to increase the number of skilled candidates in the succession pipeline.”


About half of the survey respondents also pointed to a lack of effective ways to track high-potential leaders and to share, sort and update data. According to i4cp, the survey findings indicate that there is a deep need in the industry for technologies that can integrate succession planning with performance management and leadership development, allowing organizations to better track high-potential employees.


"As the former EVP of People for Wal-Mart Stores, it is good to see that HR is realizing the important correlation between their organization's sustainability and succession management," said Coleman Peterson, CEO of Hollis Enterprises and a strategic advisor to i4cp. Peterson is also a frequent keynote speaker on succession management. "Today I'm a member of three public company boards and am chair of the compensation committee for each," Peterson continued. "I am encouraged to see that more and more boards are placing succession management high on their agendas."

The Succession Management Survey 2006 was conducted by i4cp in conjunction with HR.com and includes responses from 799 organizations. For more information about this survey, or to receive a full copy of the results, please contact Greg Pernula at (727) 345-2226.

About i4cp, inc.

Building on the 35-year history of its predecessor, the Institute for Corporate Productivity (i4cp, inc.) improves corporate productivity through a combination of research, community, tools and technology focused on the management of human capital. With more than 100 leading organizations as members, including many of the best-known companies in the world, i4cp draws upon one of the industry’s largest and most experienced research teams and executives-in-residence to produce more than 10,000 pages annually of rapid, reliable and respected research and analysis surrounding all facets of the management of people in organizations. Additionally, i4cp identifies and analyzes the upcoming major issues and future trends that are expected to influence workforce productivity and provides member clients with tools and technology to execute leading-edge strategies and “next practices” on these issues and trends. i4cp is a for-profit company with offices in St. Petersburg, FL.