Effective succession planning in construction companies

Human resources have always been the most critical factor in the construction industry, and now, with a historic generation entering the age of retirement, the construction industry needs to place greater effort in preparing for the succession of their most important of human resource, their leaders. A significant body of research has shown that succession planning minimizes the negative effects that come with leadership transition; however, little research has focused specifically on the construction industry. The majority of construction companies are family owned or have small pools of potential successors, which make them more susceptible to the negative impacts that occur with poor planning for succession. The objective of this research focuses on developing a methodology that will assist construction companies plan and prepare for a leadership transition. Data is gathered from case studies of twelve construction companies that have recently experienced leadership succession. The data is analyzed for practices and characteristics that correlate to successful leadership transitions. Through the findings in the literature review and data analysis of the case studies, the research successfully achieves the objective of developing a potential methodology for increasing the effectiveness of succession planning in a construction company.