Page 229 - 100 Great Business Ideas: From Leading Companies Around the World (100 Great Ideas)

98 INTERNAL PROMOTION
AND SUCCESSION
PLANNING

Getting succession right is vital. There are two approaches
that can be used at different times to ensure success. The internal
selection approach advocates choosing successors from within, to
ensure a smooth transition, preserve company values, and encourage
employees by showing a potential career path. The Darwinian
approach favors being open to both internal and external candidates
when selecting a successor.

The idea

Organizations struggle with how to turn succession into success.
It is necessary to use either internal selection or the Darwinian
approach at different levels or at different times. For example, a
high percentage (eg 80 percent) of senior roles may be internally
appointed, while junior roles are selected in a Darwinian way, with
employees chosen from a large pool of talent both inside and outside
the company. This two-tiered approach is successfully used by many
corporations, including HSBC.

The strength of the Darwinian approach is that it promotes a
meritocratic system, where the most talented workers are selected,
bringing fresh perspectives, and increasing the competitiveness of
your organization. By choosing influential employees from a diverse
array of candidates, a company will gain a valuable range of different
skill sets and perspectives to guide it through a variety of challenges.
Also, rather than earmarking certain people for possible future

222 • 100 GREAT BUSINESS IDEAS