General Electric (GE) is widely recognized and respected for its leadership talent and its successionmanagement system. One of the best examples of succession management is how GEs formerCEO, Jack Welch, shaped and elevated the companys philosophy, practice, and reputation fordeveloping leaders. In a 1991 speech, Welch stated, From now on, choosing my successor is themost important decision Ill make. GEs commitment to developing leaders from within hasyielded positive results for both the companys employees and for GE. In fact, the program hasbeen so successful that its been widely emulated by other global organizations.Measuring and developing talent lies at the forefront of GEs business strategy discussions. GEsoperating system, referred to as its learning culture in action, entails year-round learning sessionsin which leaders from GE and outside companies share best practices with one another andgenerate ideas for new practices. Harry Elsinga, manager of executive development at GE, notes,We really have a tight organization around how we combine our leadership meetings and howwe approach our business. We have a constant cycle going on throughout the year where we talkabout business and people at the same time. How do we develop talent in those businesses, howdo we make sure that we have the right people to open a particular plant or to do an acquisition,etc.? Those discussions always go hand in hand. And its not a one-time kind of conversation; thisis a constant, ongoing process.iiGEs succession management system is fairly simple. GE managers and executives are movedfrom job to job every two to three years, and each job change or promotion is a well-thought-outprocess that provides managers with much-needed experience and exposure to certain elements ofthe business. This has allowed GE to build a management team that is very knowledgeable and experienced. Performance management and leadership assessments help to identify future leadership talent and a comprehensive leadership development plan helps prepare these people for what they need to be ready for the next level. GE's employee management system tracks individual employees progress and regular organizational succession reviews help to keep the talent pipeline full. GE also makes it one of its business leaders top goals to help their people grow and move them along their career paths. In addition to business results, leaders are also expected to hit employee growth and development targets.

1.Do you think that GEs approach to succession management would work for all organizations? Why or why not?

2.What are some possible disadvantages of moving people to new jobs every two to three years?

3. Why does GEs succession management approach work so well?