Family businesses face unique challenges when transitioning from one generation to the next. The struggle to protect family and business interests requires a thoughtful strategy, and succession is even more difficult if there is no clear candidate to lead the business.
As the saying goes, “the best laid plans of mice and men often go awry.” In the case of succession, an unexpected CEO vacancy can throw even a healthy organization into disarray.
People set strategy. Directors and executives who know where the company should be going will be best equipped to get it there.
The first month of the new year saw the highest turnover among chief executive officers since the previous January as 113 CEOs left their posts during the month. The January total is up 9.7 percent over December when 103 CEOs departures were announced, according to the latest report on CEO turnover released from global outplacement firm Challenger, Gray & Christmas.
Appointment of an “interim” CEO usually means an organization’s succession program has failed. In a joint RHR International/Chief Executive magazine study of 236 corporate directors, 95 percent of respondents acknowledged that CEO succession is critical. Yet, more than half (53 percent) rated themselves as “ineffective” in executing their responsibilities in the process. Forty percent of the directors surveyed claimed that they are not prepared for an emergency succession.
A decade ago, the average tenure of a Fortune 500 CEO was 9.5 years. Today? 3.5 years. Looking at recent stumbles at Best Buy, Yahoo, HP and elsewhere a pattern of sorts emerges that may be instructive for leaders looking to beat the odds.
Although CEO succession planning is an integral part to any business plan, companies often fail to plan for it in a real and meaningful way. Doesn’t it seem counterintuitive to focus on leaving a company when you are busy enough with current management challenges? Failing to plan for the future can have negative effects on company reputation, employee morale, momentum and even stock price. Do you have a plan in place?
Recent surveys indicate many companies still don’t have a succession plan in place
Dropping for decades, the typical tenure of a CEO is now between four and five years. In fact, business leaders in some industries only hold
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
