Two-Pronged Succession Planning Program
Johnson and Johnson, known worldwide and highly-visible as a manufacturer and distributor of fast-moving consumer goods, operates under a system of decentralized management. Its organization as a manufacturing company in New Jersey dates as far back as 1886, yet it continues to flourish and operate, surviving all economic depressions that have taken place in the history of America.
The company attributes part of its survival success to the effectiveness by which its programs for succession planning have been implemented. Throughout the years, the products of their management and educational training as well as individual development programs have provided them with managers to fill in the company’s key positions. To date, Johnson and Johnson has over 114,000 employees scattered all across the globe.
The program involves the incumbent CEO and an oversight group, which they call the Nominating & Corporate Governance Committee (NCGC). They work together in reviewing the employees who have the highest potential to become future managers of the company. A selection committee at lower levels is in charge of the identification, selection, and evaluation process before candidates are presented to the CEO and the NCGC for review.
Two sets will be chosen, one set comprising employees selected for top management positions while the other set is employees referred to as “change drivers" who will be tasked to lead future or current business drives of the company.
Every chosen candidate will have future career plans mapped out for him or her and will undergo a continuous succession of management training programs, aside from individualized training.
The “change drivers" will undergo different in-house curricula, since they will be honed not only for a specific business sector or department, but for the entire operations of the company. This includes the basic knowledge of the company’s manufacturing processes.
As a manifestation of Johnson and Johnson’s succession planning strategy, 50% of the company’s CEOs all throughout its years of operations came from within the organization’s well trained human resources. In addition, the company is proud of its track record of 48 consecutive years of dividend increases.
Through these two examples of succession planning, the significance of enabling employees to become future executive leaders ensures smooth transitions of leadership in the company. That way, business operations can go through any changes, without experiencing adverse impacts at any instance or conditions.