In an article, Dennis Carey, Vice Chairman of Kern/Ferry International, summed up the best way to smooth over the CEO Succession process. There are ten simple steps Carey urges you to follow:
- Have a CEO evaluation guide that fits the company.
- Business strategy, should always be considered when choosing a new CEO.
- During a CEO’s evaluation, reward should always be kept in mind.
- Evaluation and succession should be conducted by a committee of directors and non-executive board leaders.
- Non-executive board members should be responsible for operating the succession planning.
- Great CEO’s are hard to find; make sure you keep the good ones close at hand.
- Poor performing CEO’s need to be shuffled out quickly.
- Making a director CEO is only a stop gap till you find the right person to take the position.
- When looking inside your own company for a candidate, go to those who work most closely with the person for the scoop.
- When looking outside your company, be wary of references from consultants. Make sure you do the proper research about the person.
Following these steps will help ensure that the CEO succession process operate smoothly within a myriad of different types of companies.