Table of Contents
Chapter 1 - Succession Planning1
| Problems with Not Having Succession Planning | 1 |
| The Succession Planning Concept | 2 |
| Advantages of Succession Planning | 3 |
| The Costs of Recruiting and Onboarding | 4 |
| Succession Planning and the Strategic Plan | 5 |
| Knowledge Transfer and Succession Readiness | 5 |
| The Pooling Concept | 6 |
| The Well-Rounded Candidate | 6 |
| The Specialist Candidate | 7 |
| The Insider vs. Outsider Issue | 7 |
| The Insertion of Outsiders | 7 |
| Backup Planning | 8 |
| Review Questions | 9 |
Chapter 2 - The Succession Planning Process10
| 1. Identify Core Competencies | 10 |
| 2. Compare Employees to Core Competencies | 12 |
| Unusual Candidates | 13 |
| Those Not Interested in Advancement | 13 |
| 3. Provide Training | 13 |
| 4. Provide Career Planning | 14 |
| 5. Post Available Jobs | 16 |
| Enhancements to the Succession Planning Process | 16 |
| Limit the System to Critical Positions | 16 |
| Minimize the Number of Core Competencies | 17 |
| Adjust Job Competencies into Manageable Pieces | 17 |
| Identify High Potential Employees | 18 |
| Introduce High Potentials to Other Managers | 18 |
| The Cloned Candidate | 18 |
| The Clawback Provision | 19 |
| Extended Job Periods | 19 |
| Avoid Bureaucracy | 19 |
| Review Questions | 21 |
Chapter 3 - Succession Training22
| Assigned Work | 22 |
| Coaching | 23 |
| Formal Training | 24 |
| Generic Training | 24 |
| Mentoring | 25 |
| Lateral Moves | 26 |
| Review Questions | 27 |
Chapter 4 - CEO Succession Planning28
| The CEO Replacement Problem | 28 |
| Replacement Preparation | 28 |
| The External Hire Conundrum | 29 |
| Essential CEO Attributes | 29 |
| The Hiring Decision | 30 |
| Existing CEO Cooperation | 32 |
| Post-Hiring Activities | 32 |
| Review Questions | 34 |
Chapter 5 - Succession Planning Metrics35
| Employee Replacement Cost | 35 |
| Percent of Non-Baseline Positions Filled Internally | 36 |
| Percent of Critical Positions Filled Internally | 36 |
| Employee Turnover | 36 |
| High Potential Employee Turnover | 37 |
| Projected Retirement Dates | 38 |
| Review Questions | 39 |
Chapter 6 - Succession Planning Failures40
| The Low Commitment to Succession Planning | 40 |
| How to Improve the Odds of Success | 40 |
| The Balancing Point | 41 |
| Employee Departures | 42 |
| Review Questions | 44 |
Answers to Chapter Questions45
Glossary49
Index51
Course Details
Author: Steven M. Bragg, CPA
Steven Bragg, CPA, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young. He received a master’s degree in finance from Bentley College, an MBA from Babson College, and a Bachelor’s degree in Economics from the University of Maine. He has been a two-time president of the Colorado Mountain Club, and is an avid alpine skier, mountain biker, and certified master diver. Mr. Bragg resides in Centennial, Colorado. He has written more than 300 books and courses, including New Controller Guidebook, GAAP Guidebook, and Payroll Management.
Publication/Revision Date: 7/24/2026
Course Exam Questions (online): 15 (multiple-choice)
Program Delivery Method: NASBA QAS Self-Study
Available Formats of Course Text: Downloadable PDF, Printed/Mailed
Course Level, Prerequisites, and Advance Preparation Requirements
| License | Course Level | Prerequisites | Advance Preparation Requirements |
|---|
| CPA | Overview | None | None |
* This program is appropriate for professionals at all organizational levels.
Sponsor ID Numbers
National Registry of CPE Sponsors I.D.: 107615
State CPA Board Sponsor ID Numbers (where applicable)
Florida Division of Certified Public Accounting: 0004761
Hawaii Board of Public Accountancy: 14003
New York State Board for Public Accountancy: 002146
Ohio Accountancy Board: CPE .51 PSR
Pennsylvania State Board of Accountancy: PX178025
Texas State Board of Public Accountancy: 009349
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Recognize the costs of recruiting and onboarding.
- Specify who might be included in the different types of talent pools.
- Describe the characteristics of someone who is ready for promotion.
- Cite the differences between succession planning and backup planning.
- Recognize what constitutes leadership competency.
- Specify the indicators of a key position.
- Describe the techniques that can be used to make a succession planning program more effective.
- Cite the training methods that can be used to enhance employee capabilities.
- Recognize the uses to which coaching can be put.
- Describe the problems associated with hiring a CEO from the outside.
- Specify the characteristics of an insecure CEO.
- Identify the types of costs that can be incurred to replace an employee.
- Recognize the different causes of unavoidable turnover.
- Recognize the organizational structures that tend to block employee advancement.
- Specify the methods that can be used to retain employees.
