For their latest feature article, our CEO Barrett Stephens teams up with Darleen DeRosa, managing partner at OnPoint Consulting, to provide their latest insight into how to navigate successful succession planning.
In “How to Avoid Disruption in Your Succession Plan“, Stephens and DeRosa write:
Public company CEOs have an average tenure of five years. This is a result of activist engagement, technology disruption, and shifts in strategic direction. Even companies like GE, who were once renowned for having robust succession planning for executive positions, have now been forced to address gaps caused by unexpected succession events.
With recent high-profile incidents that have called for CEOs to step down, it’s evident that ongoing Board oversight of culture and CEO succession planning must operate in tandem… Not having a well-thought-out succession plan that incorporates cultural fit is a huge mistake, and boards are paying close attention. A study of the world’s 2,500 largest public companies shows that companies that scramble to find replacements for departing CEOs forgo an average of $1.8 billion in shareholder value…
…Disruption of succession has become a significant problem for CHROs who need to provide leadership options for their Boards that are different than the normal state of business. In the long-run, it can be an opportunity for companies to better align their talent with their strategic direction.
To further explore this feature article, click here.