CSP Metrics & ROI of Succession Programs 2

Question 1

A company calculates its succession program ROI as 320%. What does this figure most directly indicate?

Accepted Answer

The program generated $3.20 in value for every $1 invested

Answer

ROI of 320% means the program returned $3.20 for every dollar spent, typically calculated as (Net Benefits / Program Cost) × 100.

Question 2

Which metric best measures the SPEED at which succession pipelines develop ready candidates?

Accepted Answer

Pipeline velocity

Answer

Pipeline velocity tracks how quickly candidates move through developmental stages from identified successor to ready-now status.

Question 3

An organization's external hire rate for senior leadership is 65%. From a succession planning perspective, this signals:

Accepted Answer

A weak internal talent pipeline requiring intervention

Answer

A high external hire rate for senior roles indicates the succession pipeline is not producing sufficient ready-now internal candidates.

Question 4

Which formula correctly calculates the 'Succession Coverage Ratio'?

Accepted Answer

Number of identified successors / Number of critical roles

Answer

The Succession Coverage Ratio divides total identified successors by the number of critical positions, indicating how well roles are covered.

Question 5

A CSP practitioner wants to isolate the succession program's impact from other HR interventions when calculating ROI. The most rigorous method is:

Accepted Answer

Using a control group comparison with similar organizations not running the program

Answer

Control group comparisons allow isolation of the program's specific impact by comparing outcomes between similar groups with and without the intervention.

(CSP) Certified Succession Planner Practice Test

(CSP) Certified Succession Planner Practice Test

CSP Metrics & ROI of Succession Programs 2