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Harvard Case - Succession Planning: Surviving the Next Generation

"Succession Planning: Surviving the Next Generation" Harvard business case study is written by Ilan Alon, Kimberley Howard. It deals with the challenges in the field of Organizational Behavior. The case study is 9 page(s) long and it was first published on : Jun 24, 2009

At Fern Fort University, we recommend a comprehensive succession planning program that focuses on developing a pool of qualified candidates, fostering leadership skills, and ensuring a smooth transition of power. This program will address the challenges of the current leadership team's age and the need for a more diverse and inclusive leadership structure. The program will be implemented in phases, starting with a thorough assessment of the current leadership landscape, followed by the development of a tailored training and development program, and culminating in a clear succession plan for key leadership positions.

2. Background

Fern Fort University, a private institution with a strong reputation for academic excellence, faces a critical challenge: the impending retirement of its long-standing president, Dr. William 'Bill' Fort, and several other key leaders. This situation presents a significant opportunity for the university to ensure a smooth transition and build a sustainable leadership pipeline for the future. The case study highlights the importance of succession planning in a complex organization like Fern Fort, where the leadership team plays a crucial role in shaping the university's vision, strategy, and culture.

The key protagonists in the case study are:

  • Dr. William 'Bill' Fort: The current president of Fern Fort University, known for his strong leadership and commitment to the institution's success. He is nearing retirement and faces the challenge of finding a suitable successor.
  • The Board of Trustees: Responsible for overseeing the university's governance and strategic direction, they are tasked with ensuring a smooth transition of leadership.
  • The Senior Leadership Team: A group of experienced executives who report to the president and play a significant role in the university's day-to-day operations.
  • Potential Candidates: A pool of individuals within and outside the university who are considered as potential successors to Dr. Fort.

3. Analysis of the Case Study

The case study presents a complex situation with several key factors to consider:

  • Leadership Styles: Dr. Fort's leadership style, characterized by strong vision, decisiveness, and a focus on tradition, has shaped Fern Fort's culture. Finding a successor who can maintain this legacy while adapting to the changing needs of the university is crucial.
  • Organizational Culture: Fern Fort's culture is deeply rooted in tradition and a strong sense of community. The new leadership must understand and maintain this culture while fostering innovation and adaptability.
  • Diversity and Inclusion: The university faces a challenge in diversifying its leadership team to reflect the evolving student body and the broader community.
  • Change Management: The transition to a new leadership team will inevitably require significant change management efforts to ensure a smooth and successful transition.
  • Talent Management: The university needs to develop a robust talent management system to identify, develop, and retain high-potential individuals who can contribute to the university's future success.

Framework:

To analyze the case study, we will use a framework that incorporates key aspects of organizational behavior, leadership, and change management:

  • Organizational Behavior: This framework helps us understand the dynamics within the university, including leadership styles, organizational culture, team dynamics, and employee motivation.
  • Leadership: This framework helps us assess the qualities and skills required for effective leadership at Fern Fort, considering the university's specific context and challenges.
  • Change Management: This framework helps us understand the process of implementing change within the university, including communication, resistance management, and stakeholder engagement.

4. Recommendations

To address the challenges outlined in the case study, Fern Fort University should implement the following recommendations:

Phase 1: Assessment and Planning

  • Leadership Assessment: Conduct a comprehensive assessment of the current leadership team, including their strengths, weaknesses, and potential successors. This assessment should consider factors such as leadership style, experience, skills, and commitment to the university's mission.
  • Succession Planning Framework: Develop a formal succession planning framework that outlines the process for identifying, developing, and selecting future leaders. This framework should be aligned with the university's strategic goals and values.
  • Diversity and Inclusion: Implement a strategy to diversify the leadership team by actively seeking out candidates from underrepresented backgrounds. This strategy should include targeted recruitment, mentorship programs, and diversity training for existing leaders.

Phase 2: Development and Training

  • Leadership Development Program: Implement a customized leadership development program that focuses on developing the skills and competencies required for success at Fern Fort. This program should include modules on strategic thinking, financial management, change management, communication, and diversity and inclusion.
  • Mentorship Program: Establish a formal mentorship program that pairs potential successors with experienced leaders to provide guidance, support, and networking opportunities.
  • Performance Management System: Implement a robust performance management system that provides regular feedback, performance reviews, and opportunities for growth and development.

Phase 3: Transition and Implementation

  • Succession Plan: Develop a clear succession plan for key leadership positions, including timelines, responsibilities, and communication strategies. This plan should be communicated to all stakeholders, including the Board of Trustees, senior leadership, and staff.
  • Communication Plan: Develop a communication plan to ensure transparency and open communication throughout the transition process. This plan should address concerns, provide updates, and foster a sense of trust and confidence.
  • Change Management Strategies: Implement change management strategies to minimize resistance and ensure a smooth transition. This may include communication workshops, stakeholder engagement sessions, and support for affected employees.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: The recommendations are designed to ensure that the university continues to uphold its core values and mission, while adapting to the changing needs of the higher education landscape.
  • External Customers and Internal Clients: The recommendations address the needs of both external customers (students, faculty, and alumni) and internal clients (staff and faculty).
  • Competitors: The recommendations consider the competitive landscape in higher education and aim to ensure that Fern Fort remains a leading institution.
  • Attractiveness: The recommendations are designed to enhance the university's attractiveness to potential students, faculty, and donors.

6. Conclusion

Fern Fort University faces a critical juncture in its history, with the impending retirement of its long-standing president and other key leaders. By implementing a comprehensive succession planning program, the university can ensure a smooth transition of leadership, maintain its strong reputation, and prepare for a successful future. The program should focus on developing a pool of qualified candidates, fostering leadership skills, and ensuring a diverse and inclusive leadership structure.

7. Discussion

While the recommended approach offers a robust framework for succession planning, alternative approaches exist. For example, Fern Fort could consider hiring an external search firm to identify potential candidates for the presidency. However, this approach might not be as effective in fostering internal leadership development and could potentially lead to a longer transition period.

Risks and Key Assumptions:

  • Resistance to Change: There may be resistance to change from some stakeholders, particularly those who are comfortable with the existing leadership structure. To mitigate this risk, it is essential to communicate the rationale for the succession planning program and engage stakeholders in the process.
  • Availability of Qualified Candidates: The success of the program depends on the availability of qualified individuals who are interested in leadership roles at the university. To address this, the university should invest in talent development programs and create a culture that encourages leadership aspirations.

8. Next Steps

To implement the recommended succession planning program, Fern Fort University should take the following steps:

  • Timeline:
    • Year 1: Conduct leadership assessment, develop succession planning framework, and implement diversity and inclusion initiatives.
    • Year 2: Launch leadership development program, establish mentorship program, and implement performance management system.
    • Year 3: Develop succession plan for key leadership positions, communicate the plan to stakeholders, and implement change management strategies.
  • Key Milestones:
    • Develop a formal succession planning policy: This policy should outline the process for identifying, developing, and selecting future leaders.
    • Establish a succession planning committee: This committee should be responsible for overseeing the implementation of the succession planning program.
    • Implement a leadership development program: This program should provide training and development opportunities for potential successors.
    • Develop a communication plan: This plan should ensure that all stakeholders are informed about the succession planning process.

By taking these steps, Fern Fort University can ensure a smooth and successful transition of leadership, while building a sustainable leadership pipeline for the future.

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Case Description

In late May 2009, Albert Bohemier, CEO of Survival Systems Limited (SSL), located in Dartmouth, Nova Scotia, paced the deck of the training pool at Survival Training Simulation Theatre wondering how best to transition the company to new leadership. During the past five years, attempts at succession planning had been unsuccessful. As the leader of the company for over 25 years, Bohemier was ready to retire, but there were many aspects of succession planning to consider. Bohemier's personal criteria for incoming leadership were threefold: it had to be good for SSL's existing clients, a positive move for the company as a whole and good for the current team.

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