Succession planning RWE ready Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Succession planning RWE ready Case Study Solution

Introduction

RWE ready was initiated before 65 years. Three generations including Kenneth Ready, his son and grandson have operated the business. However, due to grandson’s health concerns the ownership has been transferred to his cousin. The family was mainly holding the company’s shares. In 1985, the leadership of company was transferred to an outsider named as Sean Horner. He joined the company at the age of 54 and planned to get retirement at the age of 65.

Problem statement

In 2005, it was analyzed that 78.2 million baby boomers work in the industry.Moreover., the median age of retirement was also announced at 60. The workers of RWE ready have been working for so long and most of them have crossed their retirement age. The company was facing threat of knowledge loss. In addition, the company was focusing on developing the succession planning. However, replacing all employees was not an easy task as in board meeting, it was noticed that all major employees have aged and are in the list of baby boomers. However, recruiting outsiders and expecting them to work perfectly was not possible.

Alternatives

Following alternatives would help the company to solve the above described problems:

Alternative 1: New Employees Hiring:

RWE should hire new employees in addition with old employees. However, as company is financially strong, the training and development of employees can be afforded by the company as it will facilitate long term growth of the company. Moreover, the new hiring will help the company to take wise and modern decisions that would facilitate company with further growth. In addition, the technology and strategies that are known by the young generation are far better than the ones older people used to know. These technologies would be helpful for the company for its long term growth and prosperity.Moreover, the old employees should be given golden handshake or compensation such as pension so that they don’t feel offended or it wouldn’t be unethical to them.

Alternative 2: team up old and new employees

Another step that can be taken by the company is teaming up old and new employees so that the training and development costs could be eliminated. Moreover, the vast experience of old employees, would help new employees to adjust in the company’s environment and to accept its culture. Moreover, the work of old employees would also teach them about the processes used at the company in order to work effectively. However, it should take old employees into the confidence that it will not threaten their jobs and positions. Moreover, old employees should be made leaders of the new ones so that they’ll feel proud about their job position and wouldn’t feel offended.

Alternative 3: Use social media:

By using online job portals such as LinkedIn and using social media such as Facebook and Twitter for hiring the new employees the company would be able to save hiring cost. Consequently, this saved cost could be used for training and development of new employees. Moreover, it would help the company to hire faster compared to other portals such as newspapers. Also, it will facilitate company’s message to reach faster to the required people and it will make the company’s hiring job easier.

Alternative 4: implementing ERP software:

In the current market, when technology is at its peak, company should implement software such as enterprise resource planning. This software helps the company to integrate with other departments. However, the old employees that would be using manual costing and structure would not be able to use such technology. Consequently, it would be necessary for the company to hire young generation so that this plan could be implemented...........................

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