God forbid, but if you got hit by a bus tomorrow, do you have a trusted lieutenant who can keep your company on track?
To help you answer this question, think about the following comments:
- Choosing a successor is one of the most important decisions that a Chief Executive Officer (CEO) and board can make. Bank of America was widely criticized when CEO Ken Lewis resigned with no clear succession plan in place. Several months after he announced that he was stepping down, no successor had been identified to replace him.
- Succession planning is not an academic exercise. It is not simply a question of finding the right person. It is an activity that is central to the health of the company.
- If companies do not have a good succession plan in place, at all levels of the company, but especially for the top job, they are doing a disservice to their stakeholders.
- If companies do not have a succession plan, to some extent, they are being negligent. It is like parents who die without leaving a will. You need to be able to pass along the knowledge and intentions that are meant to guide the company after you are gone.
- Also, your employees, customers and shareholders also need to be reassured that the company is in good hands no matter who holds the title of CEO. They need to know that there is continuity and certain bedrock principles guiding the company into the future.
- When a CEO leaves without establishing a successor, he is casting doubt on the future health of the company.
- Succession planning is not a one-time decision; it is a long-term ongoing process. Every company needs to be identifying potential successors – at all levels of the organization – and grooming them for future responsibilities.
You may see different versions of this question in your life as:
Research shows that well over 50% of companies promote their CEOs from within. Such companies understand a central tenet of business-that a well-crafted succession plan vastly minimizes disruption when the CEO leaves, expected or not. (Jack Welch, former CEO of General Electric) Build leadership capacity incrementally. Upgrade corporate training so that it becomes an industry-wide credential. (Dan Carrison and Rod Walsh Business Leadership The Marine Corps Way)
Do you truthfully answer this Yes or No?
How can the notes you just made help in your life, job and business? What one issue from your thoughts you noted when truthfully answering this question, will you start improving, TODAY?
Because risks are what really go wrong when you are not looking: stupid things like bounced checks, losing your best customers or best people when you are blindsided. You need to create peripheral vision in your business so you are not blindsided.
You need a perspective of life under the microscope and to have lived to tell the tale. Insights give a common sense approach to what people make complex, as companies grow.
Bottom line? – Risks are what really go wrong when you are not looking: stupid things like bounced checks, losing your best customers or best people when you are blindsided.
You need a perspective of business under the microscope and to have lived to tell the tale. After analyzing and helping over 200 companies, I have learned one key point:”What You Don’t Know About Your Business Can Cost You Your Business.”
From the author of the newly released book, ‘Stick Out Your Balance Sheet & Cough: Best Practices for Long Term Business Health’. Available on Amazon. So open this book and say Profit.