Executive Succession: Are High School Boys Better Prepared Than You?
Christian Muntean
Advisor for rapid growth, scaling, succession and exits | Author | Speaker | Executive Coach | CEPA
“Leaders are also responsible for future leadership. They need to identify, develop, and nurture future leaders." - Max DePree
The Great Handoff
Baby Boomers hold roughly 75% of all executive positions in the United States. Most are ready to retire or move on soon. Many have already begun.
It’s the Great Handoff. And it’s already begun. It’s not only Baby Boomers – although they are the largest demographic.
But, for far too many, the Great Handoff plays out much more like the Great Fumble.
Most leaders have, at best, an abstract sense of what their succession will look like. Or when.
As a result, most successions aren't planned. They are forced. They happen because someone gets sick, burned out, can't resolve a conflict, has a family problem - or they die.
Even planned successions go wrong. Often due to an outgoing leader who unilaterally appoints their heir apparent. Outgoing leaders usually have too many blind spots to do this well.
This is especially true for small and medium-sized companies. Larger companies are more likely to have put thought into their succession process. But even they can be caught off guard.
Unstable Times Call for Stable Leadership
Over the last couple of years, CEO turnover (planned and unplanned) has increased. This will likely continue in the coming years.
Succession creates obvious instability.
But also, the next few years will see high rates of change:?Social, economic, technological, geopolitical... These changes represent both challenges and opportunities for growth.
Organizations with stable leadership will outperform everyone else. If they prepare for a smooth, planned transition they will enjoy a distinct advantage.
They can focus on their objectives. Everyone will be focused on chasing their fumbled succession.
Are You as Prepared as a Group of High School Boys?
I ran the 4X100 relay in high school. We set the school record. As individuals, we were fast. But we weren’t the fastest. I know I wasn’t.
But we mastered the hand-off. We won because we practiced passing the baton more than anyone else.
A good relay hand-off is technical. It can go wrong in lots of ways.
Your leadership hand-off is far more technical. And far more important.
Is it a stretch to suggest that it might take more time and effort to prepare for succession than a relay hand-off?
Unfortunately, many will give this less effort and attention than high-school boys practicing to win a race.
Something to think about.
Three Handoffs
To milk the relay analogy for all its worth: In a relay race, there are three handoffs. All should be the same.
In an organization, there are actually three different kinds of successions. Each is needed. Building one helps build the next. Having all three will result in a better run organization.
Here they are:
1) Unplanned / Emergency Succession: One executive was hit by a truck (he survived after months of recovery). Another died unexpectedly. Another only provided weeks of notice before resigning. Another was fired.
Unplanned, emergency events.
These plans are the building blocks of all succession planning.
Done well, they create stability within the organization. They provide clarity about the temporary redistribution of roles and responsibilities. They create a defined process for the future provision of leadership.
Unplanned/Emergency Succession plans include (but are not limited to) topics such as:
This planning creates a solid platform for other kinds of succession planning. It is the most “nuts and bolts” focused of the plans.
If this planning is done first, the other plans are easier.
2) Planned Leadership Succession: This is the kind of succession most people think about.
But most try to answer the wrong question with the plan.
They ask, “How do I replace myself?” or “How do we replace dear leader?” That question sends people off down rabbit trails that lead to nowhere useful.
Instead, here are the questions you should ask:
领英推荐
If you’ve completed your Unplanned/Emergency Succession Plan and have solid answers to the three questions above, you’ve done most of the work for this plan.
After this, Planned Leadership Succession Planning usually includes:
And so on…
I think you can see that most of this work happens before a planned succession occurs. You need the plan before you can start that work. Don’t wait.
3) Staff Succession Planning:?Many leaders have a vision for the future. Very few have a clear sense of the people they will need to build that future.
Setting succession aside, organizational growth is often stymied by not having the right people in place when you need them.?This is accentuated during succession.
When the current CEO leaves, anticipate staff changes. They almost always occur. Some people leave. Some positions change. New leaders often restructure or build new teams.
Here’s a simple version of how to build a Staff Succession Plan:
To Conclude
One of the most important decisions an organization will make is succession-related.
What I describe above may sound like more work than you wanted. But it really isn’t hard. It just takes doing.
And if done well, you’ll have a healthier, more resilient organization overall. Even if succession is years away.
Take good care,
Christian
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