SUCCESSION PLANNING

Does your organization know who would own essential customer relationships, strategic initiatives, intellectual property, or institutional knowledge should key executives suddenly leave the organization? How much would it cost in time, dollars, and energy to regroup after such a departure?

Succession is not about a person or a date, it’s about a plan.

Succession planning combines a unique blend of assessment, coaching, and talent consultation to align key stakeholders around a future vision. It facilitates awkward but critical “what if” conversations and aligns strategy and talent to ensure the future health of the organization, regardless of who is in the C-suite.

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Succession planning is particularly useful when:

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Private equity or venture capital investment has intensified the need to manage the downside risk of a premature C-suite exit

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The CEO is approaching the end of their tenure in that role

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Retaining key leaders is incumbent on a thoughtful succession plan

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The business needs have shifted, requiring different leadership capabilities at the top

Chess pieces

The Process

1

DEFINE

Partner with CEO and Board to define tangible and intangible outcomes

Decide on executives to participate and devise a communication plan

Create a scorecard to capture key accountabilities and leadership behaviors

2

ASSESS

Conduct a 2.5-hour interview with each participant

Conduct online leadership assessments with each participant

Interview 4-5 stakeholders for each participant as part of a focused 360 evaluation

3

DEBRIEF

Provide individualized feedback to participants on strengths, risks, and runway

Review assessment results with the CEO and internal stakeholders

Meet with each participant to co-create a one-page development plan

4

CODIFY

Present findings to Board and facilitate a robust discussion

Leverage data-driven insights to prepare a dynamic succession plan

Outline next steps, including process/timing for external candidate evaluations

Real Life Results

Transition That Fueled Growth

CHALLENGE

A mid-size public company acquires a founder-led business with a set of brand-centric products likely to build a stronger customer base. Known for infusing creativity and artistry into even the most mundane products, the new business was founded by two brothers in the Midwest. The financially savvy, strategic founder who secured the initial capital exited the day-to-day three years ago. The remaining founder was the artistic genius many believed to be the magic behind the brand.

PROCESS

The succession planning process delineated a robust analysis of strengths and gaps for all key leaders under the founder, which informed the parent company on how best to position each of them in the new, larger organization. The process revealed that the remaining founder, while artistic, was light on pragmatism and business acumen. Plus, his temperamental nature kept employees on edge, creating flight risks. The process also revealed a pleasant surprise. His “number two,” a Danish engineer by training who also studied art in the U.S., had plenty of creative genius of her own and was responsible for some of their biggest revenue drivers of late.

OUTCOME

The founder soon realized that his artist’s heart wasn’t built for Wall Street-level scrutiny and exited. His “number two” was promoted to group CEO with his blessing and in the spirit of her being his protégé and legacy. She brought a practical leadership style combined with a willingness to push the envelope and take risks on products, resulting in better-than-expected growth following the transition.

What’s the Value of a Prepared Management Team?

Collecting credible data, synthesizing it well, and aligning people around the key themes greatly increases the chances of a successful outcome. Clients appreciate I am well-prepared to do just that— 

  • Having worked with businesses at different growth stages and infection points, from VC-backed start-ups to public companies, I understand succession looks different for each organization. 

  • Having assessed every role on a typical management team, I see the chess board, including how strength-risk profiles in various roles impact the organization. 

  • Having unique expertise in human behavior, I readily discern ambivalence, reluctance, or apprehension and work to build trust and partnership.

  • Having facilitated amongst investors, Boards, and the management teams themselves, I engage stakeholders and garner alignment.

A trusted, objective, and supportive third party helps keep the focus where it belongs: on the future health of the organization.