Baloni Brothers Ltd: Succession Plan - Essay Example

Baloni Brothers Ltd: Succession Plan Table of Contents Baloni Brothers Ltd: Succession Plan 1 Table of Contents 1 Succession Plan 2 Strategy for Future 3 References 7 Succession Plan The case of Baloni Brothers is a very good example to understand the manner in which effective leadership can help bring about a successful business organization. Both the founder directors of the company did not have any technical qualifications; however the company gained widespread recognition and fame due to the long term vision and leadership skills of the two individuals. The company has earned many accolades in a very short period of time. However with both the Baloni Brothers approaching 65, and 69 years in age, they are likely to get retired from active service. In this regard there is an urgent need for finding a suitable replacement of the two key individuals. The issue also assumes importance considering the fact that the entire organization is highly dependent on these two directors. An effective succession plan at Baloni would involve four steps firstly; the succession planning would be named as succession development plan as it is necessary to develop individuals into broader leadership roles as it would be more practical in the current case. This can be traced from the historical nature of the origins and growth of Baloni Brothers who despite lacking technical skills had efficient leadership traits that helped in the rise of the company. Succession development planning would help in finding appropriate persons who can fit into the shoes of the Baloni Brothers so as to ensure a good job fit. Secondly, a succession development for finding a new successor would also involve measurement of the outcomes and not the process as a whole. In case of Baloni Brothers, the successor would essentially be an external person who would be new to the company. A team comprising of the Baloni Brothers and the directors would also be in place to select the new executive. The new person would be designated as the CEO or the Chief Executive Officer. The CEO would be handpicked from a set of chosen candidates. The candidates would essentially be associated in the same industry and business segment for a considerable period of time in a very senior position. Efforts would be made to take a relatively younger person for the job as it would help in bringing greater energy and enthusiasm into the organization that would motivate others n the company. A simple yet comprehensive selection criterion would be made so as to reduce complexities and look for leadership traits. This would be with the core philosophy of the company that is evident from the fact that the two founders lacked technical complexities but had simplistic leadership skills that helped make the organization a success story in the market. Finally realistic approach would be adopted. In this case it implies that the company would essentially select individuals who have in born leadership instincts and have a comprehensive and holistic idea about running a business. These traits would be given preference over technical skills and qualifications as that would help in generating sustainable edge for the organization. The new person to be deputed as the CEO would essentially work under the guidance of the Baloni Brothers for a considerable period of time so as to understand the basic philosophy and the nature of working of the organization. Subsequently a phase wise allocation of responsibilities would be taken so as to ensure smooth transfer of leadership and also to ensure that the core policy and the philosophy that have made the company a success story is kept maintained and the organization achieves new heights in business excellence. Strategy for Future The growing competition in the business markets has augured the need to ensure greater sustainability and formulation of new strategies so as to maintain growth of a company. In case of Baloni Brothers, a future roadmap would be essentially based on waste management, material management and innovation. With regards to waste management the company would reduce its wastes by 55 percent by the middle of 2012. This would be in line with the Government’s policy of ensuring construction companies reducing their wastes by 50 percent by end of the year 2012. The company would increase the percentage of recyclable materials by another 10 percent. Baloni brothers would also try to built eco friendly homes using majority of eco friendly materials so as to help reduce wastages and ensure greater sustainability (HM Government, 2008, p.50-55). In the area of material management, Baloni Brothers would target to use 30 percent of all the material sourcing including timber from vendors listed with the government. Inventory management would be done using modern techniques like ERP so as to help increase efficiency and ensure greater sustainability. The company would reduce its carbon footprint by about 10 percent over a period of two years with a 5 percent decrease every year. In addition to these aspects the company would also work with the government towards life cycle assessment in an attempt to ensure greater sustainability in business processes. The vendor selection process would also be refined so as to ensure greater sustainability and transparency in the area of sourcing and also to ensure responsible sourcing in the business (HM Government, 2008, p.55-60). In accordance with the recommendations of the Controller and Auditor General, Baloni Brothers would try to inculcate greater innovation in the business process. This would include fixing remuneration on the basis of the set target price. It would also try to ensure better costing standards in order to efficiently manage costs. Use of efficient machines that consume less power as well as innovation in design and construction would help in reducing the cost of operations. There would be a new training program for the engineers that would strive upon the best practices in the industry with regards to use of innovations in construction of buildings. The aspect of innovation would also include other staff members. A specific fund with objectives would be set up whose sole function would be to not only introduce innovative aspects into the organization but to also ensure its diffusion across the entire organization (Comptroller and Auditor General, 2001, p.13). In addition to innovation, waste management and materials, Baloni Brothers also would try to enter into new markets. Potential regions would include neighbouring countries where the existing supply chain mechanism can be easily replicated. This would help the firm to diversify its markets so as to ensure greater risk management and also expand its scope of operations. This in turn would imply a better and more formidable positioning of the company in the minds of the consumers. It existing areas of expertise can very well be included in those regions so as to help generate greater efficiency and also expand its market size. The company would also try to explore options for diversifying into related industry segments so as to ensure a spread of risk. Diversifying into related product and service categories such as hospitality sector including setting up hotels can help ensure considerable advantage for the organization where it can use its existing skill sets to enter new businesses and generate greater profitability. The company would also try to go public within next three years by floating an initial public offering. This would not only enhance the reputation of the company but would also help it to raise funds for future projects that can be used to financing its plans for the future as stated above. Finally, a control and evaluation mechanism in the form of a balanced scorecard would also be introduced so as to help evaluate its accomplishment of financial as well as non financial objectives so as to gain sustainable competitive edge in the market. References Comptroller and Auditor General. (2001). Modernising Construction. [Pdf]. National Audit Office. HM Government. (2008). STRATEGY FOR SUSTAINABLE CONSTRUCTION. [Pdf]. HM Government and Strategic Forum. Read More