Succession Planning
A compelling reason for succession planning is organisation effectiveness. The Malaysian Code of Corporate Governance prescribes that “the Board must ensure that management of the highest caliber is available for appointment, training and promotion”. The Board must seek to appoint a capable Chief Executive Officer, and the Board must be satisfied that there are programs in place to train and develop managerial capability. Ultimately, the Board ensures that there is orderly succession of management to critical positions.
Critical positions are jobs that cannot be left vacant for any length of time. Therefore, there must be a plan always to fill critical position so that the business is not affected.
Critical positions can be found at the top level and in many parts of the organisation. The operator of an important machine is a critical position of a production line.
Succession planning is the process by which organisations study, assess, determine the capability needs of the position and plan for uninterrupted staffing of critical positions.
