Developing a CEO succession plan may seem distant concern for an incumbent with no immediate plans to leave, but a lack of one can have implications for the health of a business. “A CEO can make or break a company” notes Clem Chambers, CEO of financial market website ADVFN. “When Steve Jobs first left, Apple nearly went bust within a few years. A company is often the manifestation of a CEO and an unplanned-for change is unlikely to end well.”
Who should design the CEO succession plan?
So who is responsible for creating a CEO succession plan? Some believe it is the chief executive themselves. “Succession planning should start on a CEO’s first day,” says Tony Kirschner, partner at executive search firm Leaders International. “They are responsible for refining their executive team and ensuring its sustainability, so they should immediately start looking for indicators of leadership and wider interest in strategic direction amongst their staff.”