Succession Planning: Rwe Ready

9 Pages Posted: 17 Jun 2009

See all articles by Gerry Yemen

Gerry Yemen

University of Virginia - Darden School of Business

Martin N. Davidson

University of Virginia - Darden School of Business

Abstract

Always a thorny issue but it had to be asked. Who was next in line? Management succession is a significant issue in many firms. Executives put all their energy into the business. But how much time is spent on bench strength planning? And what happens if the CEO is not ready to hand the reigns over and begin a life outside the office? This case presents transition challenges that many companies currently face—the retirement age of baby boomers and the takeover of the C level suite by the next generation.

Excerpt

UVA-OB-0881

SUCCESSION PLANNING: RWE READY

Always a thorny issue, but it had to be asked: Who was next in line? That was the burning question of late at the C-level meetings taking place at RWE Ready Automakers headquartered in Detroit, Michigan. There seemed to be a glaring omission in the firm's management practices—they had forgotten about the future. Who could blame them? After all, under the current CEO's leadership, the company had flourished.

Blake Swayze, vice president of human resources and facilities, looked around at the other executives seated at the highly polished conference room table. Something they touched on really did hit home with him. Most of the firm's executives—Swayze included—were high-end baby boomers quickly approaching retirement age. Time seemed to have gotten away from them. He wondered what the future RWE executive suite would look like.

Swayze had hoped that today's meeting, the first one of the 2007 fiscal year, would solidify support for a succession strategy regarding the leadership of the company. Would they need to prepare more than one person? Was there an heir apparent ready to step up? How would they structure the transition? He couldn't help wondering—Why was this so damn difficult? And why in the world they had not worked on this more seriously before?

Driving RWE Ready Automakers

. . .

Keywords: business planning, long-range planning, management skills, bench building, succession planning, baby boomers, generation x, generation y, transitioning

Suggested Citation

Yemen, Gerry and Davidson, Martin N., Succession Planning: Rwe Ready. Darden Case No. UVA-OB-0881. Available at SSRN: https://ssrn.com/abstract=1421113

Gerry Yemen (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Martin N. Davidson

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4483 (Phone)
434-243-5020 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/Davidson.htm

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