Business Management - Succession Planning

Introduction

Biotech produces safe, effective, affordable and natural products that help people in the most natural of ways. This business formula has helped Biotech attain 20% of the market share of the supplement business with approximately $35 billion in the sale of its products. This success was achieved under the leadership of you, yourself Mr. Barney and the rest of the executive team. For Biotech to protect and continue to expand its market share of the supplement business in the future, it is important for Biotech to have a succession plan.

Succession planning is one of the most important aspects of sustaining a growing company. It is necessary in hiring and developing new leaders, who replace old ones. A well thought out succession plan not only brings in new leaders who are competent and ready to lead, but it increases transition success (Council on Accreditation Blog, 2017). With effective communication and inclusiveness, a succession plan can be properly implemented through planning, doing, and reviewing (Fister Gale, 2013).

Succession planning is incredibly important to the future of Biotech. Recently, the employees of Biotech expressed their disappointment in the current managers. Stating that there is a lack of vision, a breakdown in communication, and a lack of connection. Leadership is the key to success in any organization, and without proper leadership, an organization will fail. Biotech will need a plan in place to identify and develop new leaders who can assume managerial positions today, with leadership qualities of tomorrow.

Leadership competencies are the skills and characteristics that leaders possess that contribute to greater organizational performance (Gray, 2008). As an organization that operates all over the world, Biotech leaders must embody cultural competence, as well as an appreciation for diversity and difference (Gray, 2008). Furthermore, a successful leader can build respect from others and guide them towards meeting goals and positive change (Comstock, 2018). Biotech has four core values: customer-centricity, innovation, knowledge, and sustainability. Because of these core values, a leader for Biotech must be willing to take risks and be innovative (Canwell, Dongrie, Neveras, & Stockton, 2014). They must also have superior communication skills that builds understanding and motivates others to do their best. A leader for Biotech has the skills to build and maintain relationships, as well as manage effective teams (Gray, 2018). Through strong leadership, Biotech will achieve and maintain its vision, mission, and core values.

Succession Planning Table

Succession Planning as part of Mission and Vision

As Biotech considers filling key leadership roles over the next 12-24 months, it is important that the roles are occupied by individuals who are aligned with Biotech’s mission, vision, and strategy. Mr. Barney, and the rest of the executive team have led Biotech into the direction they have desired, it is important that Biotech’s succession plan help reinforce the values that are important to Biotech to ensure a continued success of the business.

Biotech has been very clear about its mission to develop products that are safe, effective, affordable and natural, with the vision to provide every individual with the healthiest life possible using Biotech’s natural products. Mr. Barney’s preference is to promote from within, he is also open to external candidates to ensure that the right leaders are selected for the positions.

Internal candidates would already be aligned with Biotech’s mission and vision, and those candidates would already have a personal connection to Mr. Barney and the corporate culture. With Biotech’s decision to focus on a strategic leader who can create a vision and mission, they should focus on leaders who are strategic and always looking ahead and analyzing the present in terms of preparation for what may come for the business.

Succession Planning as part of Strategy

The succession plan should align with Biotech’s overall strategy as well. Biotech currently has outlined a three-year goal to develop a triple bottom line company. In this plan, it is noted that they will focus on innovation and competitive advantage ideas with the objective of becoming a triple bottom line company. Sustainability both for profit and planet should be foremost in the minds of the leadership.

Now is the time for Biotech to develop a leadership development program where the mindset would be sustainable leadership. Organizations striving for sustainability should encourage a mindset of interdependence within the organization in its leadership development programs. Possible initiatives could include leadership assessments, coaching, international project work and leadership journeys, which take leaders out of the workplace and put them into the natural world.

The current executives can identify high performing talent and start to groom them into the leaders of the future. Succession planning and leadership development are natural allies because they share a vital and fundamental goal: getting the right skills in the right place (Conger & Fulmer, 2003). While Mr. Barney is open to looking for talent externally, promoting internally encourages employees and shows them that they have a future at the company, therefore serving as a retention tool (Schawbel, 2012). By developing these future leaders internally, Mr. Barney can be confident in knowing that Biotech will continue into the direction of being sustainable, both in product and profit.

Succession Plan as part of Strategic Thinking

The greatest and most successful organizations in the world, over many years and decades, would think ahead and encourage great strategic thinking at least somewhere in their business plans (Bradford, n.d). A sustainable successful future requires strategic thinking. In order to be effective in strategic planning, it is essential for Biotech to take a step back from business as usual and to set aside the time and energy to develop a process that is clear about its overall purpose and specific action steps, take into account the effect that any strategic actions and/or changes will have on the organization and its staff, and fully engages all stakeholders throughout an organization to increase buy-in and commitment. The nutraceutical market is daunting indeed, yet increasingly leaders are participating in strategic thinking processes that lead to strategic planning. More than a project, strategic planning serves as a catalyst to marshal the Succession Plan Committee towards the desired goals.

Recommendations

Position 1: Sales Director, Middle East. It takes a very particular set of skills to be a leader in a foreign country, in particular a Sales Director. The Sales Director of Biotech is essential in improving the organizations sales and affecting the overall performance of the business. The person in this position must be open and respectful of different cultures, as well as adhere to cultural norms, while still improving the organization's revenue. While maintaining intercultural sensitivity and patience, the Sales Director must encourage participation among employees (Commisceo Global, 2019). While demand is great for Biotech products in the Arab countries, the Sales Director must emphasize on building trust in order to successfully do business in Saudi Arabia. Saudi Arabians put a lot of importance in doing business with people they know and trust. The company must have a representative there that puts in the time and effort to establish a foundation and build relationships (Kwintessential, 2019). Strategic leadership, as well as cultural intelligence will ultimately lead to success in Saudi Arabia.

Position 2: Director of Research and Development. The Director of Research and Development position at Biotech is the bones of the company’s platform and the person to fill this position must possess leadership qualities to manage a team of diversified researchers/innovators acting as a catalyst and coach (Gritzo, 2017). Biotech’s mission is to develop products that are natural, safe and affordable while seeking to further develop its food and cosmetic lines. While having a clear vision of where the company’s future wants to be the director must be able to raise questions and encourage creativity towards challenges to be able to meet these goals. Motivating individuals while allowing failure helps those understand that a project or steps might have failure, but the direct individual does not. Allowing those to embrace the challenge and feel valued for the input (Comstock, 2018). Teamwork will enable the teams to work interchangeably while learning from one another, practicing this will increase the capacity of problem solving and self -esteem. Inspiring others to achieve results all while keeping Biotech’s business philosophy and long-term sustainability and desire for the company to be socially responsible at the heart in order to be successful. The Directors goal is to keep a competitive advantage and brand awareness. Ability to work with other departments and support his/her team will contribute to innovation and ultimate success of sales.

Position 3: VP of Headquarter Operations. Biotech is a steadily growing manufacturing company that is seeking an experienced VP of Headquarter Operations. They will be overseeing the R&D, HR, IT, Purchasing, and Finance departments therefore will need to be able to communicate effectively, be resilient, resourceful, optimistic and energetic and able to deal with complex situations (“Leadership Competencies”, 2008). With this position comes great responsibility. Biotech’s main focus for the next two years is innovation, competitive advantage ideas and becoming a triple bottom line company. Therefore, the best person for this position must have good leadership capabilities and be able to embed strategy in the organization’s culture, build teamwork within the departments and remember that any strategy is only temporary (Fuller & Green, 2005). Lastly, the VP of Headquarter Operations will need to be able to assist Biotech in keeping the company a strong natural product image link to the community and able to stay socially responsible.

Position 4: Executive Director, North American Division. Biotech has four core values, they are Customer-Centricity, Innovation, Knowledge, and Sustainability. They are the heart of the company. It is up to the Executive Director to ensure that these values and the organization's mission is carried out daily. The Executive Director is the key leader in Biotech’s Northern Division. He/she would be responsible for overseeing the administration, programs and strategic planning of the organization. This person will report directly to the President/CEO. Biotech is looking for an experienced Executive Director to oversee all operations, functions and activities. This person needs to have great communication skills and knows how to take a strategic approach in managing the organization’s operations. They need to have a clear vision, including maintaining a decent level of short-term financial stability (Nejad & Rowe, 2009). In addition to needs to be an influential manager with the ability to lead and motivate. Furthermore, since in charge of Biotech’s Northern Division this person will need to know how to implement strategies aimed at promoting the organization's mission and vision.

Position 5: Director of Finance. Currently Biotech is looking for a Director of Finance to oversee the day-to-day operations of the finance department. If chosen for this position this person will be responsible for establishing budgets, overseeing financial operations, and providing training to personnel in their department. The Director of Finance needs to be able to combine operational and strategic roles, manage accounting functions and establish long term profit growth. They need to be able to communicate to both finance professionals and non-specialist, as well as be current with trending technologies and software. Biotech defines sustainability as both for profit and for planet. Therefore, it needs someone who can think strategically and make effective business decisions. The Director of Finance needs to have the ability to see developing circumstances that could positively provide a long-term competitive advantage (Gilmore, 2007). This person needs to ensure that the company growth plans represent sound financial decisions, but they must be able to see the big picture as a whole.

Summary

It is essential that the recommendations and findings for the above upcoming positions within Biotech are carefully reviewed. These are all leadership positions where effective leadership stimulates creativity, a favorable working environment that is built on trust. Having the proper management yields effectiveness and efficiency for long term viability of Biotech (Nejad & Rowe, 2009). Some of these positions might be able to be filled internally as these candidates that have been with Biotech and understand a little more about the culture and vision may have more of an invested interest in the success of themselves to be able to prove their worth and the company’s future success (Fister Gale, 2013). Ultimately, the position has be to be filled with the right candidate that possess the qualities set within. Working alongside human resources department it will be that departments role to help gather the top talent internal and externally making sure that candidates fit the culture of Biotech and they possess skills to help Biotech stay viable for the future growth.

References

Bradford, R. (n.d.). Critical Strategic Thinking Skills. Retrieved from