The document discusses succession planning at Three Star Textile Company. It defines succession planning and provides background on the company. The company's CEO, Mr. Sarfraz Shahid, did not approve his son to be the next CEO, causing conflict. With no clear internal candidate, an external firm was hired to search for a new CEO. They selected Miss Beenish Malik, who had global experience working abroad. Some family members and employees were unhappy with this non-family selection but the board defended it as she was well qualified. Questions were asked and answered about selecting a non-family CEO and Miss Malik's suitability given the company's international business.

1. Nida Iqbal , Komal Maqsood
Planning for tomorrow's sustainability
Succession Planning
Muhammad KamranZeeshan Murtaza Ali

2. Presentation Approach
Agenda
Conclusion
Defining Succession Planning
Background OF the Company
Question Answers Session
Case study on Three Star Textile
Problem Discussion
Suggested Answers
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3. Defining Succession Planning
“identification and development of potential
successors for key positions in an organization,
through a systematic evaluation process and
training. It is largely predictive in judging an
individual for a position he or she might never
have been in”
Planning for Tommorow’s Sustainabiliy

4. Significance
Succession plans maximize business
performance based on having the right talent
at the right time.

5. About Three Star Textile Company
 Three Star Textile was Established in 1977.
 Family Ownership
 Engaged in Distribution and Manufacturing of quality
textile goods.
 Exporting the Textile products since 2001.
 Has formed some great relationships with several Mills
from around the world including, USA, China, India,
Bangladesh, Turkey, Italy, Egypt, and Middle East
countries.

6. THE PROBLEM
 In 2006, Chief Executive officer Mr.Sarfraz Shahid was
entangled with his son.
 Due to this dispute he did not approved Mr.Aizaz Shahid
for companies next CEO.
 His father also remove him from his role as chief operating
officer effectively ending his hopes for the top post
 Mr.Sarfraz decided his successor would be someone
outside of his family.
 There is no internal competition for the CEO in progress
everyone assumed the job was locked up there was a
shortage of obvious candidates.
 With the support of Company board, Mr.Sarfraz Shahid
hired an external firm to lead the search process, which
would consider candidates both inside and outside the
company.

7. Mr.Sarfraz Shahid needed someone with a
global mentality.
Internal & External Candidates
 Company board choose CEO Miss Beenish
Malik
Several high-profile executive roles under her
belt.
She had a foreign working experience
Continued….

8. Some family members and also some
employees are not happy with the decision of
new Nonfamily CEO.
Board defend the decision by explaining their
search process
Blame Mr.Sarfraz Shahid for having no plan B
Continued..

9. Q1: Family-run businesses usually have
the benefit of a clearly defined
succession plan, When Mom or Dad
retires, and their child assumes the top
job. But what happens when the next-in-
line clearly isn't right for the role?
Discussion Questions

10. • Family business usually have successor for
business but in some cases, there are no
candidates, or the candidates may not be right
for the role. This presents a challenge when it's
time to find a successor, especially if existing
employees have assumed that top level
promotions would come from within the family.
then it is difficult to choose CEO from within and
also from outside the organization.
Answer

11. Q2: What do you think is it the right
decision to select the Non Family
CEO for the company?

12. • We think in this case it is right decision because
it is better for long term Success of family
businesses if they choose someone from the
family as CEO who is not competent and
having no experience of this highly responsible
post as the non-family person has then he or
she may not take the right decision for the
business which may cause a loss for the
company.
ANSWER2

13. Q3 : Three Star Textile Company
involve in selling of their products to
different countries what do you think
the new CEO Miss.Beenish Malik is
suitable for the post or not ?

14. • Yes Miss.Beenish Malik is suitable for CEO post
because company deals with different countries and
she already have foreign working experience, which
the search team felt would help the company's efforts
to position itself on the global stage . . She had run
another textile company, also had several high-profile
executive roles under her belt. She had experience to
all of their company brands because she sat in their
corporate executive meetings so it was the right
decision
Answer3

15. THANK YOU!
MPA-2