Why does GE’s succession management approach work so well?

General Electric (GE) is widely recognized for its leadership talent and its succession management system. One of the best examples of succession management is how GE’s former CEO Jack Welch shaped and elevated the company’s philosophy, practice, and reputation for developing leaders. In a speech, Welch stated, “From now on, choosing my successor is the most important decision I’ll make.” GE’s commitment to developing leaders from within has yielded positive results for both the company’s employees and for GE. In fact, the program has been so successful that it’s been widely emulated by other global organizations.
Measuring and developing talent lies at the forefront of GE’s business strategy discussions. GE’s operating system, referred to as its “learning culture in action,” entails yearround learning sessions in which leaders from GE and outside companies share best practices with one another and generate ideas for new practices. Every GE business is responsible for having succession plans for key leadership roles.