CEO succession planning is among the most important tasks a board will ever undertake. But surprisingly, boards rarely plan for the departure of their current CEO. Our experience shows there is a void in having a systematic approach to planning for CEO succession. And, even where there is a plan on paper, it sometimes falls to the wayside. Effective governance requires a plan to protect shareholder value. Planning for the future leadership of the organization is the first step toward achieving that.
We believe that succession planning is a shared responsibility, driven by the board, executed by the CEO, and monitored by human resources. Succession planning is a comprehensive, systematic process that:
- Specifies key competencies and skills that a successor will need.
- Communicates the process by which a CEO successor will be “groomed” for the job.
- Identifies leaders within the organization who will be considered for the CEO position. It also specifies the need for recruiting external candidates if / when no heir apparent exists or when more candidates should be considered.
- Addresses how the transition from the current CEO to his/her successor will occur, and how it will be communicated to all key internal and external stakeholders.
Our CEO succession planning service is led by Tyler & Company Chairman Emeritus, J. Larry Tyler. It is comprehensive and includes a thorough briefing with the board and executive management staff. During this time, the position analysis and CEO of the Future℠ profile are developed.
Tyler & Company’s CEO of the Future℠ profile will be constructed with the benefit of two data collection processes. First, a comprehensive scan of forecasting data sources will be reviewed and compiled to distill a 30,000-foot view of the needs of the position. These sources include professional associations, consulting firms and research groups. To refine the position analysis, on-site interviews with board members, medical staff leadership and the senior executive team will be conducted. These two datasets will be cross-referenced against the position description to create customized, organization-specific competency requirements for your future CEO.
When it’s time to review candidates for the CEO opportunity, they will be assessed using the position description and CEO of the Future℠ profile. Assessments include a structured, experience-based interview designed to hone in on required competencies; a 360-degree evaluation using the competency model developed by J. Larry Tyler and Andrew Garman, PsyD for American College of Healthcare Executives; and candidate self-assessments including DiSC and those by Hogan.
After these processes are complete, a report summarizing strengths, limitations and development needs across the candidate pool will be provided to the board’s executive committee. Individualized reports will be provided to candidate(s) in under consideration.
Since communication is essential to the successful outcome of this endeavor, we encourage our working with your internal communications staff to develop a communications plan that encompasses all stakeholders.
Relevant authored and published works
- Case Study: Board Chair Succession Planning
Harris W. Brooks, Administrator/CEO, Palo Pinto General Hospital, and J. Larry Tyler, Chairman and CEO. Texas Healthcare Trustees' Trustee Bulletin, Spring 2011, pp 4-5.
- Hiring Right: Keys to Building Successful Executive Teams
J. Larry Tyler, Chairman and CEO. Chief Executive Officer. Winter 2008.
- Succession Planning at the Top
Andrew N. Garman, PsyD, MS, and J. Larry Tyler, Chairman and CEO. Healthcare Executive. July/August 2006, pp 57-59.
- ACHE-funded research studies
Andrew N. Garman, PsyD, MS, Rush University, and J. Larry Tyler, Chairman and CEO
400 Northridge Road, Suite 1250
Atlanta, GA 30350