Succession Planning at P&G
Procter & Gamble is a role model for succession planning. In an article in Fortune (November 20, 2009), Jennifer Reingold quotes Moheet Nagrath, P&G’s global human resources officer, who said, “Today I could show you the next generation of successors to current leaders, the generation after that, and the generation after that.”
The successors are listed in the company’s Talent Portfolio, a binder containing the names of P&G’s leaders compared to one another over six years on financial performance and the ability to lead and help others lead. Approximately 120 of P&G’s 135,000 employees reach general manager status and become part of the Talent Portfolio. They are evaluated every six months by their bosses, lateral managers who have worked with them, and their direct reports on a GM Performance Scorecard, which has one page of financial measures and another page assessing leadership and team-building abilities. There are at least three possible candidates for each major job, including CEO.
Although this formal process has been in place since 2001, P&G’s emphasis on hiring and retaining the right people can be traced to 1947 when CEO Richard “Red” Deupree said, “If you leave us our buildings and our brands but take away our people, the company will fail.”
The Baldrige Criteria ask how you accomplish effective succession planning for management and leadership positions. P&G has an effective, systematic response. The Criteria also ask how senior leaders create a sustainable organization. P&G’s Talent Portfolio, and its culture of valuing people, should sustain the company for years to come.
To learn more about sustainability and succession planning, read:
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