Nida Iqbal , Komal Maqsood

Planning for tomorrow's sustainability

Succession Planning

Muhammad Kamran Zeeshan Murtaza Ali

Presentation ApproachAgenda

Conclusion

Defining Succession Planning

Background OF the Company

Question Answers Session

Case study on Three Star Textile

Problem Discussion

Suggested Answers

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Defining Succession Planning

“identification and development of potential successors for key positions in an organization, through a systematic evaluation process and training. It is largely predictive in judging an individual for a position he or she might never have been in”

Planning for Tommorow’s Sustainabiliy

Significance

Succession plans maximize business performance based on having the right talent at the right time.

About Three Star Textile Company

Three Star Textile was Established in 1977. Family Ownership Engaged in Distribution and Manufacturing of quality

textile goods.

Exporting the Textile products since 2001. Has formed some great relationships with several Mills

from around the world including, USA, China, India, Bangladesh, Turkey, Italy, Egypt, and Middle East countries.

THE PROBLEM In 2006, Chief Executive officer Mr.Sarfraz Shahid was

entangled with his son. Due to this dispute he did not approved Mr.Aizaz Shahid

for companies next CEO. His father also remove him from his role as chief operating

officer effectively ending his hopes for the top post Mr.Sarfraz decided his successor would be someone

outside of his family. There is no internal competition for the CEO in progress

everyone assumed the job was locked up there was a shortage of obvious candidates.

With the support of Company board, Mr.Sarfraz Shahid hired an external firm to lead the search process, which would consider candidates both inside and outside the company.

Mr.Sarfraz Shahid needed someone with a global mentality.

Internal & External Candidates Company board choose CEO Miss Beenish

MalikSeveral high-profile executive roles under her

belt.She had a foreign working experience

Continued….

Some family members and also some employees are not happy with the decision of new Nonfamily CEO.

Board defend the decision by explaining their search process

Blame Mr.Sarfraz Shahid for having no plan B

Continued..

Q1: Family-run businesses usually have the benefit of a clearly defined succession plan, When Mom or Dad retires, and their child assumes the top job. But what happens when the next-in-line clearly isn't right for the role?

Discussion Questions

• Family business usually have successor for business but in some cases, there are no candidates, or the candidates may not be right for the role. This presents a challenge when it's time to find a successor, especially if existing employees have assumed that top level promotions would come from within the family. then it is difficult to choose CEO from within and also from outside the organization.

Answer

Q2: What do you think is it the right decision to select the Non Family CEO for the company?

• We think in this case it is right decision because it is better for long term Success of family businesses if they choose someone from the family as CEO who is not competent and having no experience of this highly responsible post as the non-family person has then he or she may not take the right decision for the business which may cause a loss for the company.

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Q3 : Three Star Textile Company involve in selling of their products to different countries what do you think the new CEO Miss.Beenish Malik is suitable for the post or not ?

• Yes Miss.Beenish Malik is suitable for CEO post because company deals with different countries and she already have foreign working experience, which the search team felt would help the company's efforts to position itself on the global stage . . She had run another textile company, also had several high-profile executive roles under her belt. She had experience to all of their company brands because she sat in their corporate executive meetings so it was the right decision

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THANK YOU!MPA-2