The senior executives that supported the previous CEO are likely still in place and partial contributors to the business situation that caused the CEO's demise. Proper succession planning can enable the replacement CEO to quickly assess the talent that is in place and also the talent that might be needed to turn the situation around. Perhaps because so many immediate issues that have visible impact on revenue, costs, and share value prevent succession from reaching the top of the agenda. That's why the board must create a management development succession agenda. These processes are too vital to the health and continued existence of the organization to be left solely in the hands of the CEO, who may be willing or unwilling, or who, with the best intentions, may procrastinate when it comes to leadership development.
Succession is a critical part of the board's primary fiduciary responsibility.
Dennis C. Carey is vice chairman, U.S. of Spencer Stuart and Dayton Ogden is co-chairman of Spencer Stuart. All rights reserved.