Executive Succession Planning: Strategic Considerations
In our previous article on CEO succession planning, we pointed out that most organizations believe in succession planning but few do it well if they...
By Andrew P. Chastain, Megan Hay and Susan M. Snyder, WittKieffer
In our previous article on CEO succession planning, we pointed out that most organizations believe in succession planning but few do it well if they do it at all. This applies to broader executive team succession as well. For the most part, it’s just not a board/organizational priority.
It should be. Leadership succession planning is a strategic imperative, especially in tough times. It ensures retention of institutional knowledge, boosts morale and retention, and mitigates the effects of a sudden or unanticipated vacancy in a mission-critical position. The more compelling argument for strategic leadership succession planning is its inextricable link with strategy. Strategic planning allows organizations to dictate their futures, but those moves require the right people in the right places, a direct result of strong succession efforts.
This article is based on “Executive Succession Planning: Strategic Considerations”, published The Governance Institute’s BoardRoom Press. Read the full article in PDF format here.
Prioritize Mission-Critical Roles
How to maximize the success of succession planning efforts? The following are a few key rules of thumb:
- Think roles rather than individuals. What positions, competencies and experiences will add uniquely important value in the next three to five years, given your strategy and context?
- Once mission-critical roles have been defined, fill those roles with exceptional talent. Strategy comes first, then roles to enable strategy, then the right people to execute against those roles to accelerate organizational impact.
- Make executive succession and talent placement review an ongoing (even quarterly) activity.
- Don’t try to be perfect. Don’t expect it to work all the time. Some leaders designated for development won’t pan out or will leave before they fulfill their strategic destiny within your organization. That’s okay, as long as the overall succession process produces clear net benefits to individuals and the organization.
Healthcare boards have an obligation to their leadership teams and broader constituents to do CEO and executive succession planning right. With strategic success so dependent upon having the right the people in the right positions, succession planning should be a mandatory activity that boards embrace as fundamental to good governance.
By Andrew P. Chastain, Megan Hay and Susan M. Snyder, WittKieffer
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