The last thing it needs is for companies to be ruined by incompetent heirs or torn apart by pointless disputes. Join them. Subscribe to The Economist today.
- When Succession Goes Awry – Four Famous Examples of Failure.
- Saving Knowledge : Addressed to Young Men.
- A Pixietale!
- Search form?
- When Succession Goes Awry – Four Famous Examples of Failure;
Media Audio edition Economist Films Podcasts. New to The Economist? Sign up now Activate your digital subscription Manage your subscription Renew your subscription. Topics up icon. Blogs up icon. Current edition. Audio edition. Economist Films. The Economist apps. More up icon. Schumpeter Succession failure Family businesses in the Arabian Gulf need to address the problem of succession planning. Reuse this content About The Economist.
Turkey trot Donald Trump tries again to reach a deal with the Afghan Taliban. Buttonwood Do not write off the macro hedge-fund manager just yet. Disney did this well with the hiring of business strategist Frank Wells and creative powerhouse Michael Eisner as complementary leaders.
Gallup tells us strengths are built on innate talent, learned knowledge and practiced skills.
Lincoln Leadership Failure | Succession Planning
Staggs' joined Disney with planning and financial strengths which Disney leveraged as he moved up the financial ladder to CFO. Then, to give him new knowledge and skills they moved him to Chairman of Parks and Resorts where he continued to grow and excel. The dirty little secret about the C-suite is that most executives are unbalanced. Some are relatively stronger strategically, organizationally or operationally.
They need balanced teams. The best working relationships seem to involve healthy doses of informal and formal, planned and unplanned communication. The organization needs to have a strong sense for who will lead next.
That's ultimately the responsibility of the board, not the incumbent. The departure of a CEO can severely disrupt an organization's progress, especially when the leader leaves suddenly without a clear successor. Despite the well-known need for succession planning, an alarming number of healthcare provider organizations are chugging along without a plan in place, just hoping that their top executives stick around for the foreseeable future.
Three Tips for Leaders to Overcome Succession Failures | Psychology Today
Forty-nine percent of hospital and health system boards lack a formal CEO succession plan, according to the American Hospital Association Trustee Services national healthcare governance survey report. That leaves them vulnerable to the disruptive gusts of a CEO's sudden departure, and it can inhibit their ability to pursue longer-term strategies by leaving them overly dependent on one leader's vision.
Charles Health System in Bend, Oregon. Perhaps the current CEO just doesn't want to talk about it, Orlikoff says.
Other ITI Sites
Some executives are more comfortable talking to their families about their own life insurance plans than they are talking to the board about what to do in the event of their sudden departure, he says. Or perhaps it's the board members who don't want to talk about it. Orlikoff says at least four board chairpersons for various organizations have told him in the past seven years that they don't want their current CEOs to leave and that they don't want to think about succession planning because the recruitment process is too burdensome.
- Advances in Geosciences:Volume 28: Atmospheric Science (AS) & Ocean Science (OS).
- Succession Failures May Be A Blessing In Disguise!
- The Perils of Not Planning for Succession in M&D Family Businesses [Infographic].
Or there could be an unhealthy power dynamic between the CEO and the board, with the CEO asserting control over tasks that should be handled by the board members, Orlikoff says. What makes the relationship between the CEO and the board so tricky is how it ties together two distinct relationships. On the one hand, the CEO and the board are strategic partners defining and executing a shared vision. On the other, they are an employee and an employer.
A board should lean on the CEO as a strategic partner because the CEO is likely to know more about the industry and more about the local market than the board members do, Orlikoff says. But when the board neglects to assert its proper place in the employer-employee relationship, the CEO may be given free rein over a broader scope of issues than is appropriate, and that can impede the CEO succession planning process, he adds. In other words, while it's perfectly appropriate for a CEO to groom a potential successor, the board should not defer to the CEO's selection, and the CEO should not insist that the board do so.