100 GREAT BUSINESS IDEAS • 223promotion, this open approach allows an unrestrained, competitive
selection process during succession. If promotion is not guaranteed
in advance, all those hoping to be considered for promotion will be
motivated to improve business acumen and performance.
Internal promotion involves choosing successors from within
an organization, to ensure that people who are already familiar
with the company are appointed to leading positions, to ensure
consistency and avoid drastic changes. When a seamless transition
between key workers is important, internal promotion is useful. It
also complements “talent management” and fast-tracking—where
certain employees are marked for possible future promotion. These
are powerful motivators. Running against “best practice” guidelines
prevailing in Britain at the time, internal promotion was favored
by HSBC when Sir John Bond left his position as chair in 2006
to be replaced by CEO Stephen Green. This ensured the new chair
would be familiar with the organization, and that other employees
would know what to expect.
In practice
Internal promotion:
- Find ways of motivating workers who are not interested in
promotion. Although “fast-tracking” can help retain certain
workers interested in corporate advancement, there are often
a number of valuable employees who do not desire such
promotions. - Recognize that internal promotion may not be the best option
when an organization is underperforming or when signifi cant
changes need to be made. - Prepare employees who are earmarked for promotion for the
jobs they will take over. A benefi t of internal succession plans