Max Landsberg
Board and Leadership Consulting
 
 

 

CEO Succession

Selecting the new CEO is one of the Board's three most crucial tasks, matched only by a decision to merge or sell the company, or the selection of a new Chairman.

Merely announcing who your next CEO will be can move the market value of your company by 5% or more, and research by Harvard Business School on the value of a great CEO suggest figures of around 15% of your company's market value.

Yet this 'bet the company' decision is still often tackled too late, with no recourse to a contingency plan, and without the benefit of enough data - as a recent client commented "there was less data in the process than in a footnote of a monthly Board pack".

To help Boards address this important topic, this article (In search of excellence in CEO Succession: the seven habits of highly effective boards) sets out the seven steps required for addressing a specific foreseeable succession need, and concludes with briefer suggestions for longer-range planning. It also illustrates the type of assignments on which I typically work with clients.