Show Succession Planningv97 Web

Succession Gone Wrong: A Story of a Failed Succession Plan in 20 Slides Maya Townsend www.partneringresources.com 617.395.8396 Click on the arrow to move from slide to slide in the presentation Presentation © 2008 Partnering Resources.

The Situation
The CEO of an R&D subsidiary of a major telecom corporation wanted to retire soon. He decided to create a succession plan to help the company continue smoothly after his departure.
He commissioned an organizational network analysis to help him form his succession plan.
Presentation © 2008 Partnering Resources. Case © 2007 Netform, Inc. Used with permission.

Organizational Network Analysis Measures Hidden Networks
Networks are the webs of trusted relationships that people forge in order to perform work.
Presentation © 2008 Partnering Resources. Image: Gartner, Inc. Used with permission.

The R&D Organization
This is the R&D organization that needed a succession plan. The CEO has five direct reports plus an assistant.
Direct reports Joe, Diane, and Stan are the key players in this story.
Diane Joe Stan CEO Presentation © 2008 Partnering Resources. Case © 2007 Netform, Inc. Used with permission.

What the Analysis Measured
The organization network analysis commissioned by the CEO measured relationships and interactions used to fulfill basic functions such as...
Getting daily work done
Solving operational problems
Developing new products and services
Presentation © 2008 Partnering Resources.

The R&D Organization’s Work Network
The work network shows how people interact in order to complete day-to-day activities.
The diagram shows that people depend on Diane to get things done.
Diane is a key player in the work network; she has 9 connections Presentation © 2008 Partnering Resources. Case © 2007 Netform, Inc. Used with permission.

The R&D Organization’s Social Network
The social network shows how people connect to find out what’s happening in the company and who spends time with whom.
Overwhelmed by work, Diane has little opportunity to socialize. In comparison, Joe has a strong relationship with the CEO.
But Joe and the CEO have a strong social relationship Diane has only four connections, none of which are with the CEO Presentation © 2008 Partnering Resources. Case © 2007 Netform, Inc. Used with permission.

The Recommendation
Joe is not a good candidate for succession. He’s not trusted by his peers, he knows little about the business, and he’s not integrated into the organization.
But, based on his strong personal relationship with Joe—mostly formed on the golf course—the CEO chose Joe as his successor.

Joe was Promoted
Frustrated that she had been working so hard without being recognized, Diane found another job and left the company.
Joe became the new CEO Presentation © 2008 Partnering Resources. Case © 2007 Netform, Inc. Used with permission.

Diane Defects
Diane’s absence opened huge holes in the work network.
Without Diane, the organization fractured and became deeply disconnected Presentation © 2008 Partnering Resources. Case © 2007 Netform, Inc. Used with permission.

The Dismissal
Joe tried to use his connections to compensate for his lack of knowledge—and for the hole created after Diane left—but was unsuccessful. His colleagues simply didn’t trust him.
After three months of terrible performance, the board asked Joe to leave.

The Aftermath
Stan had stayed in the background throughout his time with the company. He didn’t have the depth of work expertise and involvement that Diane had. But he had developed strong, trusting relationships with key people.
Stan became the new CEO and made up for the performance and profitability lost during Joe’s tenure.
Stan stepped in as the new CEO Presentation © 2008 Partnering Resources. Case © 2007 Netform, Inc. Used with permission.

The Lesson
Succession decisions often are based on gut reactions. These decisions may feel good—but they may be fatal for the company.
Organization network analysis (ONA) provides the data needed to make good decisions about succession.
Presentation © 2008 Partnering Resources.

Maya Townsend , founder of Partnering Resources, helps leaders identify the hidden web of relationships that drive organization performance.
Partnering Resources is the exclusive East Coast provider of NetForm organization network analysis. NetForm software, developed by Dr. Karen Stephenson, is built on complex mathematical algorithms developed over 30+ years of research with 400+ companies.
For more information:
Phone: 617.395.8396
Email: [email_address]
Explore: www.partneringresources.com/resources.html
Contact Presentation © 2008 Partnering Resources.

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Show Succession Planningv97 Web

by Maya Townsend on Mar 05, 2009

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