LSUS MHA 702 Ch 10

Governing boards; they do not want to imply that they have lost confidence in their CEO.

....., on the other hand, may not want to talk about succession planning because .....

exit strategy

A clear ----- should be developed for the outgoing CEO.

2,500 largest; $1.8 billion; following

A recent survey of the world's ----- public companies revealed that of those that found themselves scrambling to find replacements for departing CEOs lost on average, $----- in shareholder value during the year ----- the old CEOs departure.

5-10 years

A substantial number of senior organizational leaders are expected to retire over the next...

available, groomed, and ready to step in.

A successor should always be...

assignments; experiences

By identifying a specific successor for the CEO, significant development ----- can be arranged to ensure appropriate ----- are encountered.

continuous

CEO succession planning must be a -----process.

time; effort

Considerable ----- & ----- may be required for outside persons to understand organizations.

time; thought; daunting

Developing a succession plan require ----- & ----- but is not a ----- task.

critical

Feedback loops are...

fail

Governing boards ----- to see how it benefits their organization.

succession planning hastens a CEOs departure.

Governing boards erroneously believe that....

experience

Governing boards often lack ----- with succession planning.

talk about leadership change

Some CEOs fear that if they...., their governing board will think they are planning to leave soon.

lose poser; lame-duck leaders

Some CEOs fear that they will ----- & become ----- once a succession plan is adopted.

their governing boards believe that an outside person must be recruited.

Some organizations avoid succession planning because...

goals; timelines

Specific ----- & ----- should be created & monitored.

created; monitored

Specific goals & timelines should be ----- & -----.

maintaining 2 individuals with high salaries over an extended amount of time (CEO & replacement)

Succession planning can become costly due to what?

proactive; continuity

Succession planning is a _______ approach to ensuring _____ of leadership.

managerial positions

Succession planning is useful for other...

mature

Succession planning requires a "-----" CEO.

significant developmental assignments

Succession planning should begin to identify a successor early in the potential successor's career to allow opportunities for what?

career planning

Succession plans for middle managers are often more accurately described by the term...

current CEO

The ----- is responsible for initiating succession planning.

Board of Directors

The ----- is ultimately responsible for appointing a successor.

HR department; selecting

Ultimately, the ----- will have responsibility for managing the succession planning process (NOT ----- the new CEO!)

1. clearly defined qualifications 2. established timeframe for transition 3. & is tailored to an organization's unique needs

What 3 things does an appropriate successor plan include?

self-imposed fears & concerns

What are many of the barriers to succession planning composed of?

1. should be a board-driven, collaborative process 2. should be 1 or the boards top 2-3 most important tasks 3. selecting a successor must be collaborative effort that includes current CEO, but is essential the governing board has final accountability 4. Governing board/CEO should communicate openly about the process 5. Agreements/promises made by the board must be communicated to the succeeding leadership & honored

What are the 5 Principles of Succession Planning?

A gratifying & memorable legacy remains

What can embracing succession planning & grooming a successor help to ensure?

Excessive reliance on recruiting an outside person

What can stifle promising inside candidates?

Grooming an inside person

What helps an organization ensure that institutional memories will be preserved?

How their organization fares after they leave

What is a significant measure of a CEO after they leave?

Leadership

What is critical for the long-term effectiveness of contemporary organizations?

Assessing their inside bench strength

What is it called when an organization inventories potential employees?

Grooming an internal person to take over

What is traditionally considered a key element of for-profit sector succession planning?

50%

What percentage of a new CEOs salary does is often cost for executive search fees?

30-50%

What percentage of new CEOs fail within the 1st 15 months of landing a new job?

consider hiring outside person

What should an organization do if there are no suitable candidates with the necessary knowledge, skills, & abilities?

organization "taking a fall"; scandals; mismanagement; failed take over

What type of situations are likely to require a new regime?

uneasiness; negatively

When a successor is not immediately apparent, ----- is intensified and may _____ affect organizational performance.

Inside candidates

Who may have connections to social networks & psychological ties within an organization that can complicate efforts to change organizational culture if changes are needed?

CEOs who have been personally groomed

Who usually personally supports the process of being groomed.

To allow needed skills to be acquired and honed

Why are significant developmental assignments important?

They were not adequately prepared (groomed) to succeed

Why do new CEOs tend to fail so quickly?

diverse; organization; departments; operations

Developmental tasks should be sufficiently -----to expose the successor to the entire ----- & its ----- & -----.

4 years

Experts recommend that succession planning should begin _____ before a CEO is expected to step down.

what worked & what did not work

HR should review the overall effectiveness of the program to help understand what?

Provide more & better knowledge about the practice of succession planning

How can HR managers mitigate most existing fears & concerns?

Take time & effort to create & implement a succession plan

How can an organization maintain their momentum & direction during a leadership transition?

1. eliminating executive search fees; 2. maintaining leadership continuity when inside person is groomed & promoted

How does succession planning save organizations money?

at least 18 months up to 5 years in advance of their CEO leaving

How long ahead of time should an organization consider hiring an outside person if there is no one available from the inside?

6 to 12 months

How long does it usually require an outside hired CEO to regain the level that existed prior to the replacement?

uncomfortable; essential strategic goal

In any case, CEOs & governing boards must understand that while succession planning and implementation can be -----, it should be considered an ------ that is important for the continued success of their organization.

credibility; damaged; regime

In some situations, the ----- of an outgoing CEO & management team (which might include the designated successor) is so ----- that only bringing in an entire new ----- can sweep an organization clean.

social networks; psychological ties; change

Inside candidates may have connections to ----- & ----- within an organization that can complicate efforts to ----- organizational culture if changes are needed.

as planned

It is important for the transition to occur...

Succession Planning

It is important to focus on ___________ for the most senior executive position, a chief executive officer, (CEO).

threatened

Many CEOs might feel ----- by a trained successor standing in the wings, poised to take over at any misstep of the current CEO or at the whim of the Board of Directors.

post-succession assessment

Once the transition has taken place, a ----- should be conducted to evaluate the process.

smoother leadership transitions

Organizations with succession plans are more likely to have...

to chance

Organizations without succession plans are essentially leaving the development of their future leaders...

being swamped by more immediate & pressing issues.

Organizations without succession plans often complain of....

15%; half

Other literature points out that -----% of large companies will be in search of a CEO this year and only ----- have a designated successor or even a succession plan in place.

inappropriate or limited experiences

Potential pitfalls to inside candidates are...

Succession Planning

Process that prepares a single, designated successor

Career Planning

Process that prepares several candidates for a single position

risky; expensive

Relying on replacing an outgoing CEO with an outside person can be ----- & -----.

strengthened; leader

This perception could be ----- if the succession plan names the next -----.