Effect of succession planning strategies on organizational performance in the private healthcare institutions within Ruaraka Sub County, Nairobi County, Kenya

Abstract

Succession planning is a strategic imperative for ensuring leadership continuity and sustaining organizational performance, particularly within private healthcare institutions where leadership transitions directly influence service delivery, staff productivity, and operational stability. Despite its recognized importance, succession planning remains inconsistently implemented across many healthcare settings, with limited empirical evidence from private healthcare institutions in Kenya. This study examined the relationship between succession planning strategies and organizational performance in private healthcare institutions in Ruaraka Sub-County, Nairobi County, Kenya. The study was guided by four objectives: to examine the association between identification of potential successors and organizational performance; to determine the association between leadership development programs and organizational performance; to establish the association between mentorship and coaching programs and organizational performance; and to assess the association between leadership transition processes and organizational performance. The study was anchored on Human Capital Theory and the Resource-Based View, which collectively explain how investments in leadership development create strategic organizational capabilities. A descriptive cross-sectional research design guided by the positivist research philosophy was adopted. The target population comprised 60 private healthcare institutions in Ruaraka Sub-County that had been operational for at least three years. A sample of 140 respondents, including hospital administrators, departmental heads, human resource officers, and supervisory staff, was selected using purposive and stratified sampling techniques. Structured questionnaires were used to collect primary data, with all constructs measured using a fivepoint Likert scale. Data were analyzed using descriptive statistics (means, standard deviations, frequencies) and inferential statistics (Pearson correlation and multiple linear regression). Cronbach's Alpha coefficients for all constructs ranged from 0.793 to 0.871, indicating satisfactory internal consistency. The findings revealed that all four succession planning strategies were positively and significantly associated with organizational performance. Leadership development programs recorded the strongest correlation (r = 0.746, p < 0.01), followed by leadership transition processes (r = 0.714, p < 0.01), identification of potential successors (r = 0.701, p < 0.01), and mentorship and coaching programs (r = 0.689, p < 0.01). The multiple regression model was statistically significant (F = 62.044, p < 0.001) and explained 67.4% of the variation in organizational performance (R² = 0.674). Leadership development programs emerged as the most influential predictor (β = 0.318, p < 0.001), followed by leadership transition processes (β = 0.287, p < 0.001), identification of successors (β = 0.241, p < 0.01) and mentorship and coaching programs (β = 0.196, p < 0.01). The study concludes that effective succession planning practices are essential for strengthening organizational sustainability and performance within private healthcare institutions. Institutions that systematically identify potential successors, invest in leadership development, formalize mentorship programs and implement structured transition processes demonstrate higher levels of leadership continuity, service quality, operational efficiency and staff productivity. The study recommends that private healthcare institutions establish formal succession planning frameworks, increase investment in leadership development initiatives, strengthen mentorship and coaching programs and implement structured leadership transition procedures. Regulatory agencies and professional bodies should develop sector-specific guidelines to encourage the adoption of succession planning practices. Future research should adopt longitudinal designs, expand the geographical scope to other counties, and include objective performance metrics such as clinical outcomes and financial indicators.

Keywords: Succession planning, organizational performance, leadership development, mentorship, healthcare management, private healthcare, Ruaraka Sub-County, Kenya