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CEO succession refers to an organization’s ability to sustain excellence in CEO leadership over time, with seamless transitions from one leader to the next. The process is also known as CEO continuity.

[edit] General

CEO succession is a pivotal event in an organization’s history and always is disruptive. Changing the head of an enterprise impacts company culture, board/CEO relations, and perceptions from multiple constituencies inside and outside the business. The disruption that occurs can impact performance in a positive, neutral or negative manner. Successful companies manage this process well in advance with a concerted set of processes and milestones. Effective CEO succession requires a well-defined process that ensures a supply of highly capable candidates ready to assume the CEO position whether through an unexpected event or a planned transition. Success or failure of a CEO transition is influenced by a host of obvious and non-obvious factors, many of them of a social/psychological nature. How these factors are managed has enormous impact on the performance and status of the organization.

There are five key outcomes of an effective CEO succession: [1]

1. A board aligned on the company’s vision, strategy, and challenges
2. An effective CEO in place with sufficient candidates in the pipeline (both internal and external)
3. Well-managed and minimized risks associated with CEO transition
4. A company prepared to take advantage of the opportunities associated with CEO transition
5. Stakeholder consensus that the succession process is fair, well executed, and results in a good succession decision

[edit] References

Books on the subject:

Wackerle, F.W., (2001). ‘’The Right CEO: Straight Talk about Making Tough CEO Selection Decisions’’. New York: John Wiley & Sons. [2]

Articles on the subject:

Pellet, J., (2009). “What’s Wrong with CEO Succession?” Chief Executive, 240. [3]

Boyle, M., (2009). "The Art of CEO Succession," BusinessWeek, 4130. [4]

Charan, R., (2005). ‘’Ending the CEO Succession Crisis,’’ Harvard Business Review, 83(2).

Balloun, J., & McGill, J. (2005). “Succession Planning: A Critical Boardroom Imperative,” NACD Directors Monthly, 29(9).

Dierickx, C., & McGill, J. (2007). “The Dark Side of CEO Succession,” Chief Executive, 225. [5]

Dierickx, C., & Veneziano, J. (2008). “Three Keys to CEO Succession,” People & Strategy, 31(2). [6]

Directorship Magazine (2009). “CEO Succesion". [7]