Succession Plan Risks Essay

1408 Words Feb 23rd, 2016 6 Pages
Succession Plan Risks
HRM 420 Mr. Cardillo
January 25, 2016

Quest Diagnostics
Succession planning is "a strategy for passing each key leadership role within a company to someone else in such a way that the company continues to operate after the incumbent leader is no longer in control" (Investopedia, 2016). Quest Diagnostics is "passionate about developing innovative, ground-breaking tests, products and tools to enhance patient care, provide value to our clients, and transform information into knowledge and insights" (Quest Diagnostics, 2000-2015). Due to the commitment to its customers and company a succession plan must be in place to avoid any interruptions during transition periods. Like all plans, a succession plan
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The President and CEO of Dignity Health is Lloyd Dean. He would be a competent replacement for Steve Rusckowski.
Readiness
A successful succession plan is one where the successor excels higher than the current occupant. In order to accomplish this, "a strong succession planning program that identifies and fosters the next generation of leaders through mentoring, training and stretch assignments, so they are ready to take the helm when the time comes." (Succession Planning Roadmap, 2013) With the likelihood that Rusckowski will be retiring within the next eight years, it is vital that Tracy Cinco-Abela, current VP/Treasurer, or Lloyd Dean, current CEO of Dignity Health, be mentored on to how to transition when the time comes. Ideally, the candidates should be given a five-year plan in the event of an early retirement or a sudden occurrence of vacancy. Both are excellent candidates considering Cinco-Abela's MBA and Dean's current occupancy of CEO for Dignity Health, however, Cinco-Abela would be a stronger candidate because of her current experience with Quest Diagnostics. "According to a 2012 study by Matthew Bidwell, an assistant professor at the University of Pennsylvania's Wharton School, external hires are 61 percent more likely to be laid off or fired, and 21 percent more likely than internal hires to leave a job on the own accord. These outside hires also get paid more, but

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