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What was the succession planning model that Energy Corps was
planning? Why did they choose it?
The Succession planning model that Energy Corps was planning was the
Inside-Out Model. The reason Energy Corps chose the model is as follows

The resignation of CEO Anthony Goodman was unexpected

Under Goodman, Energy Corp was a multibillion dollar company
o It grew organically and inorganically
o Had a healthy bottom-line and he had streamlined the
company operations

As the team under Goodman achieved their revenue targets it would make
sense for the company to look for internal candidates (as they too have
performed and achieved their KRAs) who would fit the future profile with
the required skills and perform optimally through job rotation.

2. Critique the efficacy of the succession planning model followed by

Energy Corps as it played out





Job Rotation

A great way to
managerial skills


Candidates expected to be
the front runners fared
poorly in the assessment



Since most of the growth was

inorganic, the board members
exceptions for some candidates
with M&A skills.
Difficult to judge a candidates
rotation as one domain would
be more critical than the other
for example R&D department
would be highly critical than the
HR department in case of
Energy Corp
In-spite of getting a negative
feedback in the assessment
stage, field was one of the
finalists for the position of CEO
Depending upon the strategy of
the organization, management
styles were ignored in the
decision making process

Overall, Energy Corp had list down its Vision and strategy and accordingly
align its requirement for the role of a CEO.

3. What are the contingencies that could emerge in the succession

planning model of Energy Corps that could make the plan redundant
or ineffective?
Skills and Experience Profile
This profiling takes into account the future needs of the company and
accordingly the future CEOs skill requirements. Any drastic change in the
company strategy due to economic downturns, etc. will make the profile
redundant. Hence the new CEO may not be equipped to deal with the
CEOs support
Goodman had the courtesy to notify the board about his resignation in
advance. This gave the board enough time to carefully plan the succession
planning process. They could ensure that they get enough opportunity to
evaluate the internal candidates extensively and also compare them to
external candidates. However, not every CEO will provide such an early
notice. In that case, the extended succession planning process will not
work. Some CEOs may not provide adequate support in the transition
phase or may even overwhelm the candidates and board.
Resignation of the contenders
A top executive may lack the leadership qualities required in a CEO, but
may still be a critical talent. Resignation of such a person due to losing out
on the horse race may create certain obstacles in the companys
operations at least for a short while.
Authenticity of the CEOs behaviour
The requirements of the skills and behavioural competencies for the CEOs
position are communicated very clearly to all the contenders. A candidate
might modify his/her behaviour enough to win the position and may slowly
revert back to old ways. This will make the process redundant and the
board will be faced with an entirely new set of problems.
Backing out from the horse race
A promising candidate might back out at the last moment. If no suitable
internal candidate is found, the company will have to go for an external
candidate even though he/she may not be twice as good as the promising
internal candidate, not to mention the use of additional resources like time
and money.
Complexity of the process
The succession planning process is complex and requires careful planning
and extreme attention from the board of directors. The directors had to

have prior experience in succession planning. This process may prove to

be successful, however the complexity may give rise to an array of
problems. The process it also very elaborate and requires a lot of time,
resources and engagement of the board.
Lack of a strong HR function
It has been mentioned that the HR department lacked internal expertise
and relied on third-party contractors. An effective HR function will facilitate
better succession planning.

4. What are the critical success factors if the model followed by Energy
Corps is to succeed?

Strong Business Knowledge: It is important that the search for the new
CEO is rooted in the companys future strategy. Because the future needs
of the company could be quite different from its present ones.
Depth in HR discipline: Identifying the attributes required to
successfully execute the strategy will be key in deciding the success of
this plan. This will also help in devising a comprehensive profile based on
these attributes.
Strong talent authority: Rather than creating an idealized profile, it is
important to identify five or six elements that are critical. Prioritizing and
agreeing upon these attributes require a strong talent authority.
Trusted executive advisor: This could be an outside external advisor
who can monitor the external candidates as well successfully.
Courageous advocate: To facilitate a smooth transition, there should be
a committee that can be the frontrunner in implementing all aspects
related to change.