Your Succession Plan Is a Bust

It’s probably just a replacement plan. Here’s how to create an effective succession plan — one that makes your company stronger. A Q&A with Randall Beck, Gallup Managing Partner and expert on succession planning.

Randall Beck

Developing a [succession] plan in advance gives you time to react and develop more leaders. Take the CEO position, for example. You might identify three viable candidates, which is a good rule of thumb for filling any key role. But during the succession planning process, you might discover that none of the three candidates you’ve identified are ready for the role. You can then speed … [ Read more ]

“Home-Grown” CEO

Business leaders who achieve extraordinary short-term financial gains for their companies often become celebrities. But how does a company secure long-term value for their shareholders, and how does this correlate with CEO leadership? More specifically, what do we know about the importance of effective succession management?

Overcoming the Obstacles to CEO Succession Planning

To avoid politics that lurk in the shadows, get the issues out in the open with a disciplined succession process.

Stephen J. Drotter, Ram Charan

Hiring an outsider masks the hard truth that a company has not developed a pipeline of leaders from among its ranks who can step in and manage the bigger challenges of the day.

CEO Succession 2003: The Perils of “Good” Governance

Booz Allen Hamilton’s annual study of CEO succession aims to identify patterns in the relationship between chief executive officer tenure and corporate performance that can provide insights for managers, board members, and their advisors. Following the methodology used in previous years, we identified chief executives at the 2,500 largest publicly traded companies in the world (based on market capitalization as of January 1, 2003) who … [ Read more ]

Des Dearlove and Stuart Crainer

Most bungled successions can be traced to five failings.
First, many incumbents are reluctant to give up power, either hanging on too long or trying to foist like-minded successors onto their boards.
Second, when appointing new leaders, boards often choose a safe replacement, rather than someone who will question the directors’ roles.
Third, swayed by force of personality, boards frequently fail to define or adhere … [ Read more ]