Build Your Own Talent and Reap the Benefits

This article appeared in People and Management Magazine September-October issue.  I will become a monthly columnist writing articles centered around Organizations, People & Talent.

Succession planning is always unfairly coupled with the executive suite. When we think of the word, we right away envision a pool being groomed for the C-Level. Succession planning must be permeated throughout the organisation. From the marketing manager to EVP/CMO, every new hire must be looked at through the lens of replacement


What do Proctor & Gamble, JC Penny, Best Buys and Xerox have in common? They all have had recycled CEO’s. The wunderking that was at the throne was replaced by the prior wunderking! Now tell me what is wrong with that picture. Where is or was the strategy succession? So if the plan did not work, why and more importantly what are you going to do about it?

However, there have been instances of success when this model has been used so it is not always a total disaster. The most famous examples include Steve Jobs at Apple and Howard Schultz at Starbucks who came back riding to the rescue, cape & all and saved their company from the grips of decline.

How could this be? Succession planning as an organisational tool has been around for decades. How could these major companies not have a talent marketplace in place? Why would they go back to the tried and true especially in this era of innovation?

Passing the Baton: What’s So Hard About Succession Planning?

“One of the things I did best was provide a successor. Adam has the respect of the owners and the players, he has expertise in the very important areas of social media, international and television, all of which report to him.”

That was a statement this week from the commissioner of the National Basketball Association, David Stern, in announcing his retirement. Stern steps down on Feb. 1, 2014, 30 years to the day after taking charge of the league, and he will be replaced by Deputy Commissioner Adam Silver.

“I decided that things are in great shape and there’s an organization in place that will ultimately be led by Adam that is totally prepared to take it to the next level,” Stern said.

As the saying goes, “That’s what I am talking about.” I could almost see Stern’s checklist:

• Identify new skill set needed for the future;
• Hire for replacement;
• Groom/Mentor with other needed skills;
• Make the appropriate introductions as needed;
• Work side-by-side as a true partner;
• Announce retirement;
• Pass the baton.

What’s so hard about succession planning?

So Long and Farewell, Lon – You’re Simply Part of the CEO Trend

Ah, the perks of being a CEO.

We have all heard of the compensation packages it takes to bring someone into this role. It takes months of working with a search firm just to decide who and what type person is needed in the role to take the firm to the “next level.”  But one perk that is not discussed is tenure, and based on recent research, that is not one that any company or organization favors today.

When I heard the news about CEO Lon O’Neil of SHRM resigning with just under two years under his belt, I decided to take a closer look at CEO tenure within organizations. The findings are not all that surprising.
To give some background to the CEO’s role, 40 percent last no more than two years in the corner office. The average CEO tenure dropped from 9.7 years in 1999 to 8.3 years in 2006, the most recent year for which statistics were compiled by consultants Challenger Gray & Christmas, Crist Associates, and SpencerStuart. The median tenure – the number separating departures on the higher and lower halves – stood at 5.5 years in 2006.

Guest editor at 5'O Clock News

I was a guest editor for 5'O Clock News April issue.  My article is titled "HR, Trying to Put 2009 Behind Us- and Make the Most of 2010.  Click on the link HR Strategy for the future.  The Five O' Clock Club is a premier Career Management and Outplacement firm located in NYC