An Epilogue to Succession Planning: Understanding the Value of Your Enterprise

  • Paul Wendee
  • Fiona Sussan
  • Ravi Chinta


Conventional practice evaluates a company in a static mode and therefore lacks a holistic understanding of how value is created. This chapter proposes a value driver theory approach for understanding the enterprise/shareholder value creation process, which is an integral part of succession management. Using a Value Creation Process Chart, we show and discuss how value is measured, determined, and created in private and public enterprises. Succession planning in practice has to date largely focused on filling vacancies as they arise on an ad hoc basis. We describe succession planning as a strategic process and discuss its impact on the value creation capability of an organization. We conclude with suggestions for managers to focus on value creation and the role of succession managers in business exit planning.


  1. Adeniji, A., Falola, H., Ibidunni, S., Osibanjo, O., & Salau, O. P. (2016). Talent retention and organizational performance: A competitive positioning in Nigerian banking sector. Periodica Polytechnica Social and Management Sciences, 24(1), 1–13.CrossRefGoogle Scholar
  2. American Express NGen Fellows. (2011). Changing the status quo: Intentional succession planning through leadership development. Independent Sector, 1–3. Retrieved from
  3. Bassi, A., Bozer, G., Esposito, M., Santora, J. C., & Sarros, J. C. (2015). Nonprofit executive succession planning and organizational sustainability: A preliminary comparative study in Australia, Brazil, Israel, Italy, Russia. The United States Journal of Applied Management and Entrepreneurship, 20, 66–83.CrossRefGoogle Scholar
  4. Berns, K. V. D., & Klaner, P. (2017). A review of CEO succession literature and a future research program. Academy of Management Perspectives, 31(2), 81–108.CrossRefGoogle Scholar
  5. Biggs, E. L. (2004). CEO succession planning: An emerging challenge for boards of directors. Academy of Management Executive, 18(1), 105–107.CrossRefGoogle Scholar
  6. Bourke, J., & Dongrie, V. (2015). A global diversity dividend. Human Capital Trends, 1–5.Google Scholar
  7. Brackenborough, S., McLean, T., & Oldroyd, D. (2001). The emergence of discounted cash flow analysis in the Tyneside coal industry c. 1700–1820. British Accounting Review, 33, 137–155.CrossRefGoogle Scholar
  8. Brigham, E. F., & Ehrhardt, M. C. (2011). Financial management: Theory and practice (13th ed.). Mason, OH: South-Western Cengage Learning.Google Scholar
  9. Chan, C. M., Kassim, A. S., Shamsuddin, A., & Wahab, E. (2012). Leadership management as an integral part of succession planning in HEIs: A Malaysian perspective. International Journal of Business and Social Science, 3, 1–8.Google Scholar
  10. Dai, G., & De Meuse, K. (2013). The role of learning agility in executive career success: The results of two field studies. Journal of Managerial Issues, 25(2), 108–131.Google Scholar
  11. DaiConnolly, K., & Groysberg B. (2013, September). Great leaders who make the mix work. Harvard Business Review. Retrieved from
  12. Damodaran, A. (2002). Investment valuation: Tools and techniques for determining the value of any asset (2nd ed.). New York: John Wiley & Sons.Google Scholar
  13. Damodaran, A. (2006). Valuation approaches and metrics: A survey of the theory and evidence. New York: Stern School of Business. Google Scholar
  14. Day, D. V. (2016). Developing leadership talent. Society for Human Resource Management, 1–5.Google Scholar
  15. Fisher, I. (1906). The nature of capital and income. New York: Macmillan.Google Scholar
  16. Fisher, I. (1907). The rate of interest. New York: Macmillan.Google Scholar
  17. Fisher, I. (1930). The theory of interest. New York: Macmillan.Google Scholar
  18. Gray, D., Jaworski, B., & Shlomo, B. (2015). Aligning corporate learning with strategy. MIT Sloan Management Review, 57(1), 53–59.Google Scholar
  19. Guess, A. K., & Service, R. W. (2015). Leadership advantage. A People Person Journal of Leadership, Accountability, and Ethics, 12(4), 59–81. Retrieved from Google Scholar
  20. Higginbottom, K. (2013). Organizations lacking inclusive leaders. Forbes Leadership. Retrieved from
  21. Hummel, J. (2016). From founder to successor 8 areas to consider when planning for succession. Journal of Financial Planning, 29(1), 20–22.Google Scholar
  22. Imran, S., Pavithra, N. R., & Rachel, D. L. (2016). Impact of talent management on organization culture. The International Journal of Business and Management, 4(2), 98–102.Google Scholar
  23. Jenkins, J. (2015). Succession planning. Helping healthcare and tech companies develop and engage their leaders and teams through coaching and workshop solutions. HDMA Distribution Management Conference and Expo, 1–15. Retrieved from
  24. Joullie, J. (2016). The philosophical foundations of management thought. Academy of Management Learning and Education, 15(1), 157–179.CrossRefGoogle Scholar
  25. Kazlauskienė, V., & Christauskas, C. (2008). Business valuation model based on the analysis of business value drivers. Engineering Economics, 57(2), 23–31.Google Scholar
  26. Koay, S. (2015). Succession planning and identifying high potential. Center for Advance Human Resources Studies, 1–12. Retrieved from
  27. Koller, T., Dobbs, R., & Huyett, B. (2011). Value: The four cornerstones of corporate finance. Hoboken, NJ: John Wiley & Sons.Google Scholar
  28. Kowalewski, S. J., McGee, D., & Moretti, L. (2011). Succession planning: Evidence from ‘best companies in New York.’ International Journal of Management and Marketing Research, 4(2), 1–10. Retrieved from
  29. Kwamboka, E., & Muthoni, K. (2017, February. 19). Family fights over the late Senator Mutula Kilonzo’s multi-billion business empire. Retrieved from
  30. Lau, J. (2008, July 29). Personal wealth: Tycoons who aim to keep it in the family. Retrieved from
  31. Leonard, D. (2010). Putting success back in succession planning: The role of learning and development. UNC Kenan-Flagler Business School, 1–16. Retrieved from
  32. McClure, A., Prewit, J., & Weil, R. (2011). Developing leadership in global and multi-cultural organizations. International Journal of Business and Social Science, 2(13), 1–8.Google Scholar
  33. Miles, S. A. (2009, July 31). Succession planning: How to do it right. Forbes. Retrieved from
  34. Mlodinow, L. (2008). The drunkard’s walk: How randomness rules our lives. New York: Vintage Books.Google Scholar
  35. Monahan, G. E. (2000). Management decision making: Spreadsheet modeling, analysis, and application. Cambridge, UK: Cambridge University Press.Google Scholar
  36. Naton, C. R. (2015). Shaping leadership culture to sustain future generations of women leaders. Journal of Leadership, Accountability, and Ethics, 12(3), 92–112.Google Scholar
  37. Pasmore, W. (2014). Developing a leadership strategy: A critical ingredient for organizational success. Center for Creative Leadership, 1–28.Google Scholar
  38. PwC. (2016). Governance insights: A focus on CEO succession. New York: PricewaterhouseCoopers. Retrieved from
  39. Rappaport, A. (1986). Creating shareholder value: The new standard for business performance. New York: The Free Press.Google Scholar
  40. Rappaport, A. (1998). Creating shareholder value: A guide for managers and investors. New York: The Free Press.Google Scholar
  41. Rappaport, A. (2006, September). Ten ways to create shareholder value. Harvard Business Review. Retrieved from
  42. Rothwell, W. J. (2001). Effective succession planning: Ensuring continuity and building talent from within. New York: American Management Association.Google Scholar
  43. Rothwell, W. J. (2002, May/June). Putting success into your succession planning. Journal of Business Strategy, 23(3), 32-43.Google Scholar
  44. Rothwell, W. J. (2010). The growing interest in a strong succession-planning program. American Management Association. Retrieved from
  45. Rutterford, J. (2004). From dividend yield to discounted cash flow: A history of UK and US equity valuation techniques. Accounting, Business and Financial History, 14(2), 115–149.CrossRefGoogle Scholar
  46. Scarlett, R. C. (Ed.). (2001). Value-based management. London, UK: CIMA.Google Scholar
  47. Schuler, R., & Tarique, I. (2012). Global talent management literature review. SHRM Society for Human Resources Management Foundation. Retrieved from
  48. Sharma, P., Chrisman, J. J., & Chua, J. H. (2003). Succession planning as planned behavior: Some empirical results. Family Business Review, 16(1), 1–15.CrossRefGoogle Scholar
  49. Stern, S. (2009). Family businesses: The success stories and soap operas. Retrieved from
  50. Stone, G. W. (2008). Core economics. New York: Worth Publishers.Google Scholar
  51. Taleb, N. N. (2001). Fooled by randomness: The hidden role of chance in the markets and in life. New York: Texere.Google Scholar
  52. Wendee, P. M. (2011). A theory of value drivers: A grounded theory study (Doctoral dissertation). Retrieved from ProQuest Dissertations Publishing, 2011. 3535532.Google Scholar
  53. Williams, J. B. (1938). The theory of investment value. New York: A. M. Kelley.Google Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Paul Wendee
    • 1
    • 2
  • Fiona Sussan
    • 2
  • Ravi Chinta
    • 3
  1. 1.Value Driver InstituteDana PointUSA
  2. 2.University of PhoenixTempeUSA
  3. 3.Nova Southeastern UniversityFt. LauderdaleUSA

Personalised recommendations