Succession Planning Takeaways From The Boardroom Summit
The economic impact of Covid-19, supply chain disruptions, increased shareholder activism and fears of a possible global recession are challenging corporate boards to rethink their C-suite succession strategies. Of chief concern is how boards should approach CEO succession planning.
Panelists Kim Williams, Board Chair EW Scripps and board member at Weyerhauser and Xcel Energy, Scott Stephenson, retired Chairman, president and CEO of Verisk Analytics and board member of public Service Enterprise Group (PSEG) and Doug Reynolds, Executive Vice President, DDI shared their thoughts about the board’s role in CEO succession during Corporate Board Member’s 18th Annual Boardroom Summit in New York. Below are key takeaways.
• Ultimately, the selection of the CEO is the most important job that the board has. The panel suggested that the board should enlist a third party to help identify the characteristics and criteria that they would like to see in their next CEO. The process of determining the next CEO should be deliberate and collaborative—involving the current CEO.
The board and the current CEO must be collaborative in selecting internal and external candidates, and be willing to enlist others outside the organization to help. Board members must be willing to have no-nonsense discussions about the readiness of specific candidates to take on the CEO job. The board should also consider providing opportunities for top candidates to gain experiences to help them grow into the position.
• CEO succession should be on the board agenda every meeting. Boards should have a subcommittee dedicated to the succession process which makes recommendations about what should be done to groom the next generation of C-suite executives—including the CEO. There should be an agreed-upon long-term succession strategy that puts key candidates in the right positions to test their abilities.
• Ask, “Where is the organization going?”; then create a profile of the type of CEO that can take you there. Selecting the next CEO requires anticipating the future. Starting with a benchmark of the current CEO’s performance, chart what has been done well and what needs to be done better. Create a profile of your desired CEO’s performance, get the board aligned with that profile and then determine how the options you are considering for CEO stack up against that profile. Consider the internal and external candidates and ask what can be done to prepare them to better fit the profile for your new CEO.
• Consider transforming your current CEO into the CEO of the future. If your current CEO is excellent at certain things but needs to be stronger at others, perhaps the relationship between the CEO and board is strong enough to convince the CEO to work on those areas that need improvement. This will likely take a personal/friendship relationship with one or more board members to finesse this situation, but it may be worth the effort. Find out how the current CEO sees the future and try to align that thinking with the attributes the board wants in the next CEO. Then give the current CEO time to make the adjustments.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
