How do we get the right CEO for our organization?
Some argue that CEO selection is the board’s single most important decision. But it’s a decision that boards are finding themselves having to make more frequently. Whether due to shareholder input, media scrutiny or natural turnover, the average period of CEO tenure today has been reduced to just five years. CEO succession is a major issue.
In the face of this executive churn, more and more organizations are now looking internally for their future CEOs. But simply waiting for the right candidate to emerge is a dangerous policy.
It is critical to look at your strategy, operating and organizational requirements, defining those requirements of the CEO position which are necessary in order to execute within the specific context. Evaluation of candidates should be based on the experience, behaviors and qualities required for the specific accountabilities of the top position. On-boarding – the building of skills and experience through a series of carefully selected developmental roles – then focuses on mitigating any gaps in experience and leadership.
Hay Group recommends that organizations should follow the example of the Most Admired Companies in our annual surveys, some 85 per cent of which ensure their boards receive regular updates on the development of key internal candidates not only for the top job but all critical executive positions.
Hay Group can help you identify potential leaders in your organization. More importantly still, we can advise you on how to nurture and develop those staff and put in place the right rewards to retain them.
Hay Group can help you create the right profile.
Many of the Most Admired Companies have developed a tailored profile for the skillset of their future CEO. That means that they can not only measure candidates against the profile, but also provide targeted leadership development.
Today’s CEOs feel their role in succession is more important than ever — in partnering with the board on succession, developing a pool of candidates and mentoring candidates to the point that they can successfully step into the CEO’s shoes. Read more.
Click on the links below to read our whitepapers on best practice in planning for CEO succession (Winning Strategy) and selecting your future leaders (Potential–for What?).