KPMG 12th People Management Symposium
Internal Successions: The role of HR
Marshall Goldsmith
[email protected] www.MarshallGoldsmithLibrary.com
Goals for today •
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Review the human challenges in top executive succession. Discuss the role of key stakeholders in the succession process. Share ideas on how executives can effectively coach – or unconsciously sabotage – their successors. Share ideas for preparing the successor for the succession process.
Publications •
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Succession: Are You Ready, Harvard Business Press, February 2009. “ How Not to Lose the Top Job” , Harvard Business Review, January 2009.
CEO succession – a human process Self – interest Ego Emotion Involving many key stakeholders •
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Passing the baton of leadership •
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The relay race It is hard when you are winning It is harder when you are losing
Creating a great rest of your life •
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Three sessions, 24 executives Frances Hesselbein, Alex Von Bitter and me No formal structure, 1 ½ days “ What am I going to do for the rest of my life?”
Letting go is hard to do •
Wealth
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Status
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Perks
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Power
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Relationships
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Happiness
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Contribution
Key learnings •
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No one to talk with Three key success factors: –
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Meaning Contribution Happiness
Success and failure stories
The three roles in the final year •
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A. Running the business B. Developing your successor C. Creating a great ‘rest of your life’ Start with ‘A’ – go toward ‘B’ – finish with ‘C’
Why developing internal successors is worth the effort •
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The cost of external failure Leadership development by example Leaving a legacy Supporting key relationships
Key relationships in CEO succession •
The CEO
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Peers
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Direct reports
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Analysts / shareholders
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Customers
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The Board
The CEO •
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The ‘lame duck’ issue If the CEO doesn’t like you – it probably won’t happen Managing the complexities of the CEO – successor relationship The panic at the end of the process
Peers •
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The competition factor The need to continue the company’s leadership team The balance between ‘not leading’ and ‘being too pushy’
Direct reports •
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The unique challenges of the COO The balance of ‘turn around’ and ‘treat people with respect’ When your direct reports are the CEO’s friends
Analysts - shareholders •
How analysts can impact succession
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New activism
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What about Carl or Kirk?
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Balancing ‘go for it’ and ‘honest projections’
Customers •
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Transactional or relationship How they can impact succession
The Board •
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The final vote How miscommunications occur The Board member who wants to be CEO
The CEO as coach •
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When it can work Why some CEO’s don’t want to be coaches Working with an external coach The CEO as ‘coach facilitator’ not ‘coach know it all’
Summary and discussion •
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What are your succession challenges? Final questions
