Business Management - Succession Planning

Introduction:

Biotech’s formula for success is to provide eco-friendly sustainable products with outstanding quality and service at a competitive price.  The formula developed into a multi-billion dollar business with the backing of its experienced and knowledgeable owners and staff members.  To protect the integrity of the company it is important for Biotech to have a succession plan to prepare for unexpected situations as well as the reality of tenured leaders aging towards retirement.  Succession planning will require grooming future leaders by training, mentorship program, hands-on experience, and leadership projects (Gale, 2013).  Exposure to real-life managerial situations will strengthen the future leader’s skills and will be well equipped to take on the job whenever the opportunity presents itself.  Planning for the uncertainty of the future makes good business sense and not having groomed future leaders ready to go could tremendously affect growth and profit.    

Succession planning goes hand in hand with identifying the leadership competencies for the upper level leadership positions to be filled.  Meaning the future leader must have specific competencies needed for success in the position.  Putting someone in a leadership position that is not ready is a recipe for disaster; sometimes it is best to keep the position unoccupied until the talent is located.  For example, in the Succession Planning Table replacing the VP of Headquarter Operation will depend upon whether the candidate can be an effective decision maker, ability to have open communication, manage crisis, and build strategic relationships. 

Succession Planning Table:

Succession Planning as part of Mission and Vision:

As Biotech considers filling the five leadership roles, it is important these roles are occupied by individuals capable of moving Biotech’s mission, vision, and strategy forward. Until now, Mr. Barney and family have led Biotech into the direction they have desired. Over the next twelve to twenty-four months, it is important that Biotech has a succession plan that allows them to have continued growth and success.

Biotech has been very clear that its mission is to build sustainable, natural, and affordable products. The vision has been to provide everyone with the healthiest life using natural products. Mr. Barney has noted that while he would like to promote from within, he is willing to go external for the right candidates. Internal candidates would have a higher chance of having a personal connection to Biotech and staying true to the mission and vision set by Mr. Barney. With Biotech’s decision to focus on inclusion, they should focus on building a diverse leadership. Diversity provides an opportunity for fresh ideas and perspective for Biotech. (Gale, 2013)

Succession Planning as part of strategy:

The succession plan should align with Biotech’s strategy as well. Biotech currently has outlined a three-year plan. 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. Now presents an opportunity or Mr. Barney to implement a leadership development program. The current executives can identify high performing talent and start to groom them into the leaders of the future (Trapp, 2014). This gives Biotech executives the opportunity to work closely with these individuals and mentor them. While Mr. Barney is open to looking for talent externally, it was noted that leaders hired from within were more successful than external candidates (Gale, 2013,para 2). By developing these future leaders internally, it can provide Mr. Barney the confidence to know Biotech will continue into the direction of being sustainable, both in product and profit.

Succession Plan as part of Strategic Thinking:

Strategic thinking should be part of any company’s succession planning. Strategic thinking has the ability to provide insight that can help them succeed long term. Strategic thinking can allow Biotech to take a step back and look at the company and industry to ensure that is on the right track. It has been known to provide long term competitive advantage by watching emerging conditions. This style of thinking should not be limited to executives only, but all employees, because everyone has the ability to bring something to the table. This could cause new products to be developed because more minds are focused on the success of the organization. Failure to make strategic decision could cause a company to collapse. (Gilmore, 2007)

Recommendations:  

Position 1:  Sales Director, Middle East

Location: Saudi Arabia

Recommendations:  Someone experienced in the sales field with a strong grasp of office management should be pursued for this position.  With this being a brand-new office in the region, someone with management experience is extremely important, especially when it comes to training new employees. (Gandolfini & Stone, 2017) Being able to pass that experience and knowledge on to new employees will be key to gaining an advantage over competitors.  Also, this may be a position where bringing in an external candidate is important, especially one with experience in the Middle Eastern Region.  This will help bridge any differences in culture and lifestyles of the new employees. (Commisceo-global.com) 

Position 2: Director of Research and Development (R&D)

Location: NY

Recommendations:  With the innovation of the R&D department being so pivotal to the company it is important to have a Director who values and encourages employees to constantly search for new ideas and innovative thinking.  The new Director should also have a collaborative management style to help motivate and empower R&D employees to continue to develop new ideas.  (Gandolfini & Stone, 2017) 

Position 3:  VP of Headquarter Operations

Location: NY

Recommendations:  An internal candidate is recommended who is familiar with the different subcultures of the multiple departments in the company and can take the goals of those different departments and incorporate them into a specific strategy for the company. (Gilmore, 2007) The VP should be able to promote teamwork between the different departments and keep them focused on Biotech’s overall goals.  (Stid & Kramer, 2018)

 Position 4:  Executive Director, North American Division

Location: Chicago

Recommendations:  An Internal candidate is recommended who has familiarity with the Barney family and has an idea of their expectations for the company.  The ability to balance multiple expectations within and for the company would also be recommended, including company profits, company growth and how to form them into both short and long-term strategies. (Society for Human Resource Management, 2008) 

Position 5:  Director of Finance

Location:  NY

Recommendations:  A candidate with a conservative view of the company’s resources is recommended.  This may be an instance where a candidate with a Leadership style reflecting the Transactional Leadership Theory may be recommended (Gandolfini & Stone, 2017) to help counterbalance the rest of the Company leadership’s propensity to be innovative.  The financial end of Biotech needs to be prioritized in a very transactional way and also conveyed in that way to the rest of Biotech’s leadership.

Summary:

Part of Biotech keeping the competitive edge is planning for the future to prepare for executives retiring or for the unexpected situations. Therefore, laying out a succession plan to assist with replacing five top executives is a necessary tool to have in lessening disruptions to business handling. The leadership competencies for each position allow Biotech to identify future leaders and begin the preparation process for the position. Succession planning keeps the company’s mission and vision in the for front along with making it part of Biotech’s business strategy and long term strategic thinking. Highlighting the recommendations for each position provides Biotech with the template to quickly fill the position without hesitation and delay.

References:

Gale, S.F.,(2013, March) Workforce, Succession Planning Roadmap, Retrieved from https://www.workforce.com/2013/03/11/succession-planning-roadmap/

 Trapp, R. (2014, March) Forbes, Successful Organizations Need Leaders At All Levels, Retrieved from https://www.forbes.com/sites/rogertrapp/2014/03/23/organizations-need-leaders-at-all-levels/#5dd1e9503ab1

Gilmore, B., (2007) Leadership Advance Online, Integrating Strategic Thinking into Your Organization Long-Term Competitive Advantage, Retrieved from  https://www.regent.edu/acad/global/publications/lao/issue_11/gilmore.htm

Biotech Health and Life Products Company Profile, retrieved from Course Material  BMGT 365 7982