CEO succession planning remains an important necessity due to the frequent turnover of management that occurs today. In order to ensure that a company prospers beyond the current CEO, upper management must take proactive measures. Such measures include writing a succession plan, holding periodic reviews and implementing the actual plan. The use of such measures prepares a company to transition to
. a new CEO once the time arrives. These measures prove most effective when the transition of the CEO title remains a planned phenomenon. The first step in preparing for succession consists of writing an actual plan. While this step may appear obvious, many companies fail to put such options and thoughts in written form. Such a plan typically includes how a CEO succeeds their predecessor, how an emergency succession must take place and the role of all those involved throughout the succession process. Overall, this provides a cohesive plan that all committee and board members can refer to when the time of succession arrives. Secondly, the respective committee members need to review the succession plan at least twice throughout the year. This remains a necessity because policies and procedures can change with time. This also allows companies to reevaluate their succession plans in light of what has happened. For example, if the company believes that it needs a CEO with qualities different than those set within the original succession plan, the committee can easily review and change the plan as they see fit. This remains a great step in order to keep the succession plan current and relevant. After reviewing the plan, the committee remains free to implement it whenever necessary. Overall, CEO succession plans require a large amount of planning and review. A committee of upper management must create a written plan and the means to review it in order to ensure that their company maintain its profitability given a change in the CEO position. More Reference Links: http://www.busmanagement.com/article/A-Practical-Guide-to-CEO-Succession-Planning/ http://www.russellreynolds.com/content/ceo-succession-planning
