Succession planning goals and objectives

Succession Planning Part 2

GROUP 4: BIOTECH SUCCESSION PLANNING PART 1 9

Group # 4: Succession Planning Report and Table
Tasheion Christieholloway, Kyami Clarke, Destinee Frankenberry, & Christina Fricke

University of Maryland Global Campus

BMGT 365 7981 Organizational Leadership
Fall 2019
Dr. Ronald Iden
Group # 4: Succession Planning Report and Table

Succession planning is crucial for the long-term growth and development of an organization. The process involves identifying various key roles in an organization and mapping out plans that will guarantee the availability of the right people to fill the position in the future once current holders have exited the company. The essence of succession planning is to identify skills, experiences, competencies, and capabilities that are relevant for various positions or roles within the organization (Gale, 2013, para. 28). The process of succession planning aims at guaranteeing the continuity of organizational operations over the long term. Although the current group of managers and key employees may demonstrate excellence in their respective positions, it is crucial to ensure that proper plans are in place for their eventual exit. The future of Biotech Health and Life Products (Biotech) relies on proactive succession planning justified by the number of vacancies that are due to fall vacant and the current challenges within the leadership structures and supervision.

Biotech’s manufacturing of natural life products is based on the critical parameters of safety, affordability, and sustainable use of natural ingredients and materials, always with the customer’s health as the primary goal. Based on that purpose, Biotech envisions being a key proponent of a healthy and natural lifestyle (UMGC, 2019, p. 3, para. 3-4). These characteristics have formed the foundations upon which the company's mission and vision are built. From the beginning, Biotech has achieved considerable success because a strong vision and mission have helped to communicate the purpose of the organization to all stakeholders, provide information about strategic development, and help develop measurable goals and objectives to keep the company flourishing (Principles of Management, n.d., para. 5). The current state of affairs paints the company as a growing entity with the strategic plans of expanding into the Asian markets. The need for integrating local nationals into senior management positions is becoming ever more evident. This necessitates the establishment of a succession plan that would identify the competencies that will be required to help Biotech to respond more quickly to change, strengthen the organization’s resiliency, and keep the organization achieving its goals in the foreseeable future.

The current organizational plans touch strategically on growing sales within the Middle East region, particularly among Arab countries. Plans are also underway to expand product development with an emphasis on creating new cosmetic products and food lines. These plans require unique leadership traits that demonstrate knowledge of the markets, organization goals, and core values, like customer centricity, innovation, knowledge, and sustainability, that have guided the company over the decades (Nejad & Rowe, 2009, para 3). Leadership competencies that would be required in guiding Biotech from the current level to another depend heavily on strong interpersonal skills. This implies the ability to interact and relate well with major stakeholders in the company, particularly the customers and the rest of the team members. Sharpened interpersonal skills will also help leaders effectively communicate Biotech’s vision and mission so that goals are achieved.

There is also the need for upholding integrity at all levels of accountability within the organization. Integrity encompasses honesty and truthfulness that can inspire the rest of the teams and enhance mutually beneficial relationships with customers and suppliers. Regardless of education level, the integrity of character will equate to a successful leader (Fuller & Green, 2005, para. 24-25). Similarly, the planned leader or manager must demonstrate cultural competence, particularly regarding the Middle Eastern customs and socio-cultural values (Aldrin & Gayatri, 2014, p. 357). The focus of the next phase of growth is planned to take place within the Middle East, necessitating the culturally sensitive leadership to assume the current and future vacant positions (Conger & Fulmer, 2003, para. 2). Crucially, the prospective holders of the leadership positions at Biotech should be strong-willed and bold enough to authorize any decision that will serve the interests of the company.

In the ever-competitive environment, knowledge of the prevailing market conditions and the ability to forecast the market dynamics such as local demand is essential. There is also the need to ensure that as Biotech enters into another phase of change and growth, the future leaders be persons who recognize the need to embrace rather than resist change. Leadership requires a holistic understanding of the various determinants of organization success, including ethics and the implications of ethics on performance (Nejad & Rowe, 2009, para. 36). Lastly, the ability to work without supervision would be considered ideal given that managers are supposed to guide the rest of employees in carrying out critical organizational activities. (Conger & Fulmer, 2003, para. 5).

Succession Planning
Alignment with Mission and Vision
Biotech promotes and encourages a relationship and transformational style of leadership and therefore defines a leader as an active, driven individual who motivates, empowers, and inspires a team through ethical engagement and open communication to achieve goals together. The vision, mission, and strategic plan play central roles in influencing the development of a succession plan. The Biotech is managed based on a vision that is egged in the spirit of providing its customers with the healthiest life by utilizing the available natural resources and methods possible. The mission of the company supports its vision by guiding its employees towards the affordability and safety of customers as the driving force. The succession plan should explore a combination of leadership qualities among prospective holders of various positions in the company with the knowledge of its mission and vision. The vision acts as the long-term goal that the company intends to achieve for certain future dates. Once the vision and mission are communicated and well understood, any successive management or leadership terms within the organization would be guided by this vision (Conger & Fulmer, 2003, para. 3). The determination of the company's vision and mission directly affects the kind of progressive and transformational leadership the company needs. Specific personality attributes and leadership qualities are associated with certain leadership styles. Any individual that Biotech appoints into the five positions must appreciate safety, innovation, and the need for continuous change (Gray, 2018, para. 6). When the vision and leadership qualities are aligned correctly, Biotech would be positioned to achieve its long term and short-term goals more effectively. Crucially, the vision determines the kind of strategies that the company will adopt in striving to attain the mission of Biotech.

Alignment with Company Strategy

Biotech has changed the planning cycle from seven years to three years to increase flexibility and responsiveness to the changing environments. This strategy will also allow the company to evaluate the performance of incoming managers over a significantly shorter period. The approach would enable the company to determine whether the company is on the right path to achieve its vision (Gray, 2018, para. 5). The shorter time period would enhance the responsiveness of the organization to any deviation from the stated vision of the company.

Strategies are how a leader realizes and actualizes stated vision or goals. As part of its strategy for growth and competitiveness, Biotech has determined that innovation and competitiveness will be crucial in achieving the vision and objectives of the company. This means that whoever is chosen to fill the essential positions in the organization should be evaluated for their ability to support creativity and innovation (Comstock, 2018, para. 17). Creative management styles are also associated with a transformational leadership style that encourages employees to think beyond ordinary and necessary definitions of responsibilities (Nejad & Rowe, 2009, para. 5). Conversely, traditional autocratic styles of leadership tend to inhibit creative ideas that would go against the company's strategic plan. It is, therefore, crucial that whoever is chosen exhibits a transformational style of leadership. Equally important are attributes such as sustainability and centricity of customers in decision-making. The Biotech should ensure that whoever is selected for the roles should espouse these attributes.

Strategic Thinking

Strategic thinking entails developing ideas that will promote the attainment of specified goals in the future. The Biotech has a vision that it must realize using the available scarce resources. Leaders use resources and competencies developed within the company to achieve the goals (Gray, 2018, para. 1). They do these by adopting the most effective and efficient strategies that incorporate the needs of the company and the competencies of employees within the organizational ranks. In choosing the successors of the company leadership and management personnel, strategic thinking requires picking the right people to fill respective offices in the organization. This process aligns organization goals, resources, and leadership styles and competencies. While the vision and mission of any organization should be concrete and long term, leaders should recognize that strategies are temporary at best and should remain flexible while working together to achieve goals (Fuller & Green, 2005, para. 15).

Recommendations

Position 1: Sales Director, Middle East

Due to Biotech’s goals for expansion and globalization, a new division will be created in Saudi Arabia. While filling the Sales Director role internally for this Middle Eastern division is ideal, it would be best to hire a local national. This is largely because it is a completely new division in a much different market and culture than what Biotech has been involved with in the past. A local national would have intelligence on the cultural customs and will be able to ensure that the best candidates are recruited, hired, and trained. Having broad global and cultural intelligence will assist the division in growing and strengthening relationships with suppliers, manufacturers, and other business associates (Canwell, Stockton, Dongrie, & Neveras, 2014, p. 12). The Saudi Arabian culture is known for being very family oriented, which falls closely in line with the family-oriented structure that Biotech has maintained throughout its decades of business. A strong candidate for this position will keep true to family ties and loyalties to better develop Biotech and its’ alliances. Having a local national in this position will provide ease in hiring known, trusted, and high-quality workers for the sales team that will need to be created (Kwintessential, n.d., para. 9-10). If an internal candidate is selected in the succession planning, the candidates should be open to new ideas and be culturally aware of the country's values, norms, and morals since they will be working in a new environment than their own. The Sales Director must be able to intermingle with the employees and civilians that work for the company while maintaining cross-cultural competence. The sales director must be capable of building and maintaining trust within their area of work for business to run smoothly. Biotech’s Sales Director in Saudi Arabia should acknowledge and respect that trust is a character trait that Saudi Arabian workers truly value (Commiscoe Global, 2019). Other key competencies to be a successful leader in the Arab market are to give great efforts to formality, show upmost respect to all, and be aware of the highly conservative culture. Leaders in this region should also be strong, confident, and patient negotiators (Kwintessential, n.d., para. 19-23). Having a strong strategic plan, awareness of the people they work with, and the cultural customs they have while being well-rounded leader will help to expand Biotech’s good reputation to the Middle Eastern region and help Biotech achieve its’ mission (Bain & Company, 2018).

Position 2: Director of Research and Development

The succession planning for the high-profile position of Director of Research and Development is one that will need to be carefully considered. Biotech’s Research and Development has always fueled and shaped the company’s vision and mission and strategies for successfully achieving goals. Even though this position does not require the candidate to be a scientist, this leader should still have a wide range of knowledge of the inner workings of this department so that progress can be made to introduce and improve products, and the team is motivated and inspired to be as innovative as possible. This innovation and motivation can be increased with continued access to cutting-edge technology that will continue to help create a competitive advantage in the nutraceutical industry. It is also key for this candidate to be able to effectively communicate the progress and vital information from the Research and Development team to all other headquarter departments. Due to the need for problem-solving, setting vision and strategies, demonstrating strong ethics and integrity, displaying drive and purpose, and valuing diversity, a good candidate for this role would show a passion to influence and long term, unwavering dedication (Ledford & Lockwood, 2008, para. 6). In this department, there are sure to be trial and error, failures, and successes. Due to that, a key leadership competency for this position would be to provide a positive sounding board and encourage unending persistence so that morale and productivity stay high (Kaufman, 2014, para. 2). Collaboration is paramount in this department so that effective and efficient two-communication is occurring between the Director and all researchers (Gandolfi & Stone, 2017, p. 8). This will also result in the completion of goals and objectives that will keep Biotech moving forward.

Position 3: Vice President of Headquarter Operations

Within the next two years, Biotech will need a new Vice President of Headquarter Operations. A strong candidate will need a broad spectrum of knowledge due to the responsibility of oversight of multiple departments. These departments include human resources, information technology, research and development, finance, purchasing, and sales. Candidates should have strong communication skills, which will be useful so they can motivate employees to get the job done all while dealing with the company's daily operations (Aldrin & Gayatri, 2014, p. 356-357). Some of the goals that Biotech's is working toward are to be more innovative and being ahead of the competition, all while having a triple bottom line. The candidate chosen for this position should have strong leadership and strategy qualities to help build the company's diverse culture, bring together employees, while fostering team-building skills within each department (Fuller & Green, 2005, para. 25). A leader that values the skill of collaboration would serve the organization well. Fostering an environment that relies heavily on collaboration will result in the creation of successful cross-functional teams (Canwell, Stockton, Dongrie, & Neveras, 2014, para. 6). In addition to ensuring fluidity between departments, the new President and CEO will also need to nurture relationships amongst different generations of workers. An ideal candidate for this position would promote training and mentorship opportunities amongst the baby boomer and millennial generational workers so that they can be more accepting and inclusive of their thought processes. This can be a challenging dynamic not only due to the diverse workforce of the headquarters but also because this candidate will need to have knowledge of the global economies within this industry and be culturally aware when interacting with employees from each of the four geographic divisions across the world. In order to have strong global knowledge and ensure smooth operations amongst a generationally diverse workforce, this leader should be open-minded, resilient, culturally sensitive, and able to deal with complexity (Ledford & Lockwood, 2008, para. 4-6).

The President and CEO should be a strategic thinker so that goals can be achieved more rapidly. Because strategy is temporary at best, this candidate should show proactive initiative, rather than reactionary (Bianca, 2016, para. 1). With a strategic mindset, this candidate would be able to utilize resources across all global divisions to achieve goals, all while keeping in mind Biotech’s core value of sustainability.

Position 4: Executive Director, North American Division

The core values of Biotech are to have sustainability, knowledge, innovation, and customer-centricity. This has built the company to is what it is today and will continue to move the company successfully into the future. The Executive Director of the North American region will need to inspire and empower Biotech’s leadership to work to promote and maintain the company’s values and morals. In order to be successful in this, the leader should possess a wide range of developed interpersonal skills (Kaufman, 2014, para. 9). These interpersonal skills could include, but not be limited to self-awareness, showing respect regardless of one’s level in the organization, providing clear, or open communication opportunities. Through the successful use of interpersonal skills, resulting in strong working relationships and good company culture, the new Executive Director would be more effective in succession planning for the future of Biotech. While some leaders may consider succession planning as intimidating that they are seeking someone else to fill their position in the future, willingness to be involved in this process is highly sought after. This proves that the candidate is considering the long-term prosperity of the organization. By recognizing that anything can happen at any time and in order to ensure smoother transitions and continuity in the company, this candidate should be regularly addressing succession plans. This is also a huge motivational factor for employees and could increase productivity and revenue (Flowers, 2017, para. 2).

The executive director of the North American region will be responsible for the administrative operations, programming, strategic thinking, and planning while sending direct reports to the company Chief Executive Officer (CEO). Maintaining a bright outlook on the business outcome will help to develop Biotech’s financial stability (Nejad & Rowe, 2009, para. 28). As one of the most influential positions in the company, a leadership competency that is key for this role is to maintain the vision for the company. This could be challenging due to the rapid growth expected in the United States and Canada, but remaining disciplined and staying true to the company’s vision is imperative to their success (Fuller & Green, 2005, para. 5). As a visionary leader, this candidate will be future-oriented, proactive, and willing to take risks that will positively influence the bottom line (Canwell, Stockton, Dongrie, & Neveras, 2014, para. 6).

Position 5: Director of Finance

Biotech anticipates the need to fill the Director of Finance in the near future. Job requirements of this position include ensuring the company's financials, procedures, and budgets are met and maintained. This candidate should also be able to understand and delegate strategic, operational, and accounting roles and functions, which will boost the profit margin of the company. Succession planners are seeking a leader with a conservative approach to balance the risk-taking Division Directors. Not just financially conservative to influence a balanced budget, but also a patient personality that does not jump to quick conclusions or judgments. The grounded personality and outlook of this leading position will play a vital role in the company keeping true to their mission, vision, and core values. In order to have awareness of the “big picture” of Biotech, this candidate should exemplify awareness and be highly perceptive to the internal and external forces in an around Biotech that could influence their future (Bradford, 2019, para. 6 & 12). The new Director of Finance will also need to know when to develop positive and healthy standards, which will give the company a competitive advantage (Gilmore, n. d., para. 3). These could be viewed as problem solving skills and the ability to positively influence others. An effective problem solver would be able to work directly with executives at headquarters and division leaders to pinpoint operational problems that are preventing Biotech from maximizing its’ potential (Bianca, 2016, para 3). Because this position is more than just strictly overseeing the financial aspects of the company and includes strategic planning aspects, a competitive candidate to fill this role should be influential (Rowe & Nejad, 2009, para. 8). The influence that this individual could have on the company range from day to day operations to assisting with planning and decision making that affect the long-term growth and survival of Biotech.

Summary

To remain competitive in today’s market it is crucial for Biotech to consider what would happen if their executives left the company. It is vital that a business is prepared for such an eventuality. By creating a succession plan for the five key positions, Biotech is identifying what is necessary for future leaders. The succession plan and recommendations outlined in this report reflect the necessary leadership attributes. Biotech requires a transformational style of leadership and defines a leader as an active, driven individual who motivates, empowers, and inspires a team through ethical engagement and open communication to achieve goals together. The applicable candidates will provide an environment that is open and collaborative (Comstock, 2018, para 2) and innovative. By incorporating empowerment and efficiencies, management will be much more effective in the long haul (Nejad & Rowe, 2009, para. 33). Some of the other positions within the organization can be filled internally. Biotech has a ray of talented workers that can be chosen from but would be perfect for any jobs they might receive. They would already be aware of the company’s mission and goals, which would put the company in a better position, and in turn, ensure the future success of Biotech (Gale, 2013, para. 4). One of Biotech’s main priorities is to make sure the human resource department and executives can work side by side to ensure the best candidates, both internal and external, are considered for positions to guarantee the growth and success of Biotech.

References Aldrin, A., & Gayatri, R. (2014, August). Leadership Not A Title Nor A Position. International Journal of Current Research and Academic Review, 2(8), 356-366. Retrieved October 22, 2019, from http://www.ijcrar.com/vol-2-8/Anitha%20Aldrin%20and%20R.Gayatri.pdf Bain & Company. (2018, April 02). Mission and vision statements. Management tools. Retrieved from https://www.bain.com/insight/management-tools-mission-and-vision-statements Bianca, A. (2016). Why is Strategic Thinking Important to the Success of Business? Retrieved from https://yourbusiness.azcentral.com/strategic-thinking-important-success-business-9612.html Bradford, R. (2019). Strategic Thinking: 11 Critical Skills Needed. Retrieved from https://www.cssp.com/CD0808b/CriticalStrategicThinkingSkills/ Canwell, A., Stockton, H., Dongrie, V., & Neveras, N. (2014, March 7). Leaders at all levels. Retrieved from https://www2.deloitte.com/insights/us/en/focus/human-capital-trends/2014/hc-trends-2014-leaders-at-all-levels.html Commisceo Global. (n.d.). Cross Cultural Management Guide-Saudi Arabia. Retrieved from https://www.commisceo-global.com/resources/management-guides/saudi-arabia-management-guide Comstock, N. W. (2018). Critical Skills: Leadership. Salem Press Encyclopedia. Retrieved from http://ezproxy.umuc.edu/login?url=http://search.ebscohost.com.ezproxy.umuc.edu/login.aspx?direct=true&db=ers&AN=98402056&site=eds-live&scope=site Conger, J. A., & Fulmer, R. M. (2003, December). Developing Your Leadership Pipeline. Retrieved from https://hbr.org/2003/12/developing-your-leadership-pipeline Fuller, J. N., & Green, J.C. (2005). The leader's role in strategy. Graziadio Business Review, Volume 8, issue 2. Retrieved from https://gbr.pepperdine.edu.2010/08/the-leaders-role-in-strategy/ Gale, S. F. (2013, March 11). Succession planning roadmap. Retrieved from https://www.workforce.com/2013/03/11/succession-planning-roamap/ Gilmore, B. (n. d.). Integrating strategic thinking into your organization for long term competitive advantage. Leadership Advance Online. Retrieved from https://www.regent.edu/acad/global/publications/lao/issue_11/gilmore.htm Gray, N. (Ed.). (2018, April 10). Leadership Competencies. Retrieved October 23, 2019, from https://www.shrm.org/resourcesandtools/hr-topics/behavioral-competencies/leadership-and-navigation/pages/leadershipcompetencies.aspx Kwintessential. (n.d.). A Guide to Saudi Arabia-Etiquette, Customs, Clothing, and More… Retrieved from https://www.kwintessential.co.uk/resources/guide-saudi-arabia-etiquette-customs-culture-business Ledford, C., & Lockwood, N. (2008, March 1). Leadership Competencies. Retrieved from https://www.shrm.org/ResourcesAndTools/hr-topics/behavioral-competencies/leadership-and-navigation/Pages/leadershipcompetencies.aspx Nejad, M. H, & Rowe, W. G. (2009, September). Strategic leadership: Short-term stability and long- term viability. Retrieved from https://iveybusinessjournal.com/publication/strategic-leadership-short-term-stability-and-long-term-viability/ Principles of Management. (n.d.). Chapter 4.3: The Roles of Mission, Vision, and Values. Retrieved from https://open.lib.umn.edu/principlesmanagement/chapter/4-3-the-roles-of-mission-vision-and-values/ Trapp, R. (2014, March 23). Successful organizations need leaders at all levels. Retrieved from https://www.forbes.com/sites/trapp201403/23/organizations-need-leaders-at-all-levels/#153a5f3ab17 UMGC. (2019). Biotech Health and Life Products Company Profile. Retrieved from https://learn.umuc.edu/d2l/le/content/420546/viewContent/16670969/View

Tables

Succession Planning Table

Position

Leadership Competencies

Source

Sales Director, Middle East (Saudi Arabia)

Global/Cultural Intelligence

Canwell, Stockton, Dongrie, & Neveras, 2014, p. 12

Family Oriented

Kwintessential, n.d., para. 9-10

Trustworthy

Commiscoe Global. 2019. Para. 3

Strong Negotiator

Kwintessential, n.d., para. 19-23

Director of Research and Development

Innovative

“Strategic Thinking: 11 Critical Skills Needed,” n.d., para. 2

Collaborative

Gandolfi & Stone, 2017, p. 8

Persistent

Kaufman, 2014, para. 2

Passion to Influence

Ledford & Lockwood, 2008, para. 6

VP of Headquarter Operations

Generational Diversity

Ledford & Lockwood, 2008, para. 4

Strategic Thinking

Bianca, 2016, para. 1

Collaborative

Canwell, Stockton, Dongrie, & Neveras, 2014, para. 6

Global Knowledge

Ledford & Lockwood, 2008, para 5

Executive Director, North American Division

Interpersonal Skills

Kaufman, 2014, para. 9

Visionary

Fuller & Green, 2005, para. 5

Succession Planning

Flowers, 2017, para. 2

Influence Bottom Line

Canwell, Stockton, Dongrie, & Neveras, 2014, para. 6

Director of Finance

Conservative

“Strategic Thinking: 11 Critical Skills,” n.d., para. 12

Awareness of “Big Picture”

“Strategic Thinking: 11 Critical Skills,” n.d., para. 6

Problem Solving

Bianca, 2016, para. 3

Influence Others

Rowe & Nejad, 2009, para. 8