Why companies struggle with succession management.
Securing a smooth succession for CEO and board-level roles is more than good governance; it’s sound business sense. That’s why the expectation among shareholders, regulators, financial analysts, and others is that boards will plan for it effectively. But in reality, very few do.
We have identified the two most common stumbling blocks:
- A lack of agreement on strategic direction: discussions about future business leaders will stall if everyone on the board has a different perspective on the future of the business.
- A lack of a coherent formal process for evaluating internal and external talent, or for linking the competencies and capabilities needed by the CEO to drive the business strategy.