63% of medium-sized companies do not have a CEO succession plan.
And even a fewer number of these mid-sized businesses have back-up plans for other key executives.
Boards and owners need to be thinking in both short-term ways and those somewhat further out in time when it comes to CEO succession plans. Their immediate concern is to ensure they are aware of candidates who could step in quickly, on a short-term basis, if needed. This approach will provide those most vitally concerned the time necessary to make a careful and well-thought-out decision on appointing the right long-term CEO.
And that right decision is definitely more tricky than ever to make in these uncertain and ambiguous times. In fact, there is the strong possibility that the long-term impact of the Corona virus has radically altered the profile of the next CEO for your business. And the choice becomes even more challenging when one considers that the best solution may well be to skip a generation (“leap-frogging”) in order to attract a CEO who is particularly technologically savvy.
As a sidebar, research shows that the best CEO’s come from “stealth companies” - those businesses that have almost zero profile in the marketplace.
Interestingly, good CEO’s start planning for their own eventual exit within a year of joining a new organization. These CEO’s know that a strong hand-off is essential to ensuring a legacy and continuity. And these same smart CEO’s always involved their Board or owners in the endeavor. This latter fact makes for a unique line of query during the interview process of prospective candidates. All the best in these challenging times!
