SUCCESSION PLANNING:
AN ANALYSIS OF THE MICHIGAN DEPARTMENT OF STATE
Table of Contents
Introduction………………………………………………………………………………………….. 1
Background of the Problem……………………………………………………………………… 1
Present Awareness of the Need for Succession Planning……………………………….. 2
Focus of the Analysis……………………………………………………………………………… 3
Application of Significant Personnel Management Concepts……………………………. 5
Globalization………………………………………………………………………………… 5
Communication…………………………………………………………………………….. 5
Empowerment and Team Building…………………………………………………….. 6
Motivation & Behavior Modification through Performance Management…….. 7
Recommendations…………………………………………………………………………………. 9
Conclusion………………………………………………………………………………………….. 10
Introduction
Planning for the future is necessary to keep an organization moving forward, yet the task
of investing resources in creating ideas and plans is often delayed by a lack of resources
and the need for attention to current projects and day-to-day business activities. When time
is devoted to planning, it is often for the purpose of addressing current problems rather
than proactively addressing potential future problems. This paper will assess the efforts of
the Michigan Department of State (MDOS or Department) as they relate to succession
planning, particularly staffing, by applying concepts of organizational behavior and
personnel management. The application of these concepts to the organization,
accompanied by specific examples, will result in constructive recommendations that
management can employ to strengthen the future of the Department.
Background of the Problem
Before elaborating on specific succession planning practices of the Department,
background concerning the financial state of the economy must be acknowledged.
Throughout the past decade, constant budget cuts have become expected by state agencies.
Secretary of State Terri Lynn Land has prided herself on the ability to meet – and exceed –
those reduction demands, while avoiding employee layoffs. In return, Secretary Land
expects that each new vacancy be thoroughly scrutinized to determine if process and staff
efficiencies can eliminate the need to hire. Along with other cost-reduction measures,
MDOS has been able to make the necessary budget cuts by reallocating funded vacancy
monies into program areas that would not otherwise be able to sustain themselves. This
practice is relevant because it creates difficulty with optimizing skills and expertise in
situations when backfilling cannot be justified.
Reductions in hiring practices are further complicated by the fact that the baby-boomer
retirement wave is projected to affect the government sector severely. For example, the
Social Security Administration is faced with the prospect of losing more than half of its
employees by the end of 2010, including a large number of leaders (Corporate Leadership
Council, 2004). The exit of career-long employees leaves the Department vulnerable if an
effective succession plan is not implemented.
