Assessment of Succession Planning Practices and Challenges in Private Limited Companies:

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Date

2025-10-25

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Addis Ababa University

Abstract

This study examines the succession planning practices and challenges within Droga GroupCompanies, a private limited conglomerate in Ethiopia. Recognizing the growing importance of leadership continuity and strategic talent management, the research explores how successionplanning is implemented and aligned with organizational goals. Using a mixed-methodsapproach, including structured questionnaires and document review, data were collected frommanagement personnel and identified successors. The findings reveal that while Droga Groupdemonstrates a strong cultural and managerial commitment to succession planning, practicalbarriers such as time constraints, limited resources, and inconsistent development programshinder its effectiveness. Key variables such as organizational culture, management support,resource availability, and strategic alignment were found to significantly influence the success ofsuccession planning initiatives. The study concludes with actionable recommendations tostrengthen leadership pipelines and ensure sustainable growth, offering insights applicable tosimilar private sector organizations in developing contexts

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Keywords

Succession Planning, Private Limited Companies, Leadership Transition, Organizational Challenges, Business Continuity, Talent Management, Strategic Planning, Corporate Governance, Leadership Development, Change Management

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