CEO Succession Planning and Organizational Performance: A Human Capital Theory Approach

Abstract

Chief Executive Officer (CEO) succession planning is a critical issue for organizations. The implications for an effective succession plan is far-reaching to the entire system, subsystems and external customers (Guthrie & Datta, 1998; Kesner & Sebora, 1994). This paper looks at the importance of talent management policies and practices as it relates to leadership pipelines, and provides a conceptual framework that organizations can adopt to ensure that they will always be prepared for CEO succession and maintain a competitive edge.