Succession Management at General Electric."

General Electric (GE) is widely recognized for its leadership talent and its succession management system. One of the best examples of succession management is how GE’s former CEO Jack Welch shaped and elevated the company’s philosophy, practice, and reputation for developing leaders. In a speech, Welch stated, “From now on, choosing my successor is the most important decision I’ll make.” GE’s commitment to developing leaders from within has yielded positive results for both the company’s employees and for GE. In fact, the program has been so successful that it’s been widely emulated by other global organizations. Measuring and developing talent lies at the forefront of GE’s business strategy discussions. GE’s operating system, referred to as its “learning culture in action,” entails year-round learning sessions in which leaders from GE and outside companies share best practices with one another and generate ideas for new practices. Every GE business is responsible for having succession plans for key leadership roles. GE’s succession management system is fairly simple. GE managers and executives are moved from job to job every two to three years, and each job change or promotion is a well-thought-out process that provides managers with much-needed experience and exposure to certain elements of the business. This has allowed GE to build a management team that is very knowledgeable and experienced. Performance management and leadership assessments help to identify future leadership talent, and a comprehen- sive leadership development plan helps prepare these people for what they need to be ready for the next level. GE’s employee management system tracks individual employees’ progress and regular organizational succession reviews help to keep the talent pipeline full. GE also makes it one of its business leaders’ top goals to help their people grow and move them along their career paths. In addition to business results, leaders are also expected to hit employee growth and development targets.

1. Do you think that GE’s approach to succession management would work for all organizations? Why or why not?

2. What are some possible disadvantages of moving people to new jobs every two to three years?

3. Why does GE’s succession management approach work so well?