Hiring a CEO: What is succession planning?
Hiring a CEO, be it the first hire or replacing the outgoing CEO, is a huge responsibility. As with any C-Suite role, the recruitment strategy takes planning and dedication. The process should long be in place before you start the initial stages of the search.
One concept that is often discussed within executive search is succession planning. These senior leadership roles that we work on at TechNET CxO are not filled by undertaking a normal recruitment process. It is all about building relationships with these senior figures in the technology and IT industry.
To preserve employee happiness, team structure, investor confidence and much more, we want to discuss this concept and what it means for a CEO hire.
What does succession planning mean when hiring a CEO?
Whether you are yet to hire a CEO or you currently have a sitting CEO, succession planning is all about looking ahead. Building relationships is always important within recruitment, but even more so for executive search. Reputable and well-known companies will attract similar senior talent if the seeds are planted early.
So, this is merely about identifying people within your industry who fit the skills and culture enough so that one day they may fill key leadership roles. More often than not, an acting CEO who steps down will have a longer notice period than usual. So, this period is the best chance for the company to reach out and establish a network of leadership talent.
Change can be hard to navigate, especially when the person leaving is such a huge part of the business. Forward planning allows for a smoother transition, which in turn helps alleviate any concerns of the wider business.
Can succession planning start from within the business?
As mentioned so far, this is all about nurturing talent and promoting your organisation to senior leaders of the industry. So, is it the norm to hire/promote from within the business? There are many arguments for and against internal succession – likewise, hiring externally can also have positives and negatives.
No matter what you decide, it is important to look within the business regardless of the potential pitfalls. This is why it is called succession planning – you need to consider all avenues to truly determine what works best for the organisation. It will be motivational to offer this opportunity internally of course, but will you be missing out on the right fit by not looking elsewhere?
Ultimately, every business is different. A hiring approach that is a resounding success for one business, won’t necessarily work for another. There is a lot to consider here – so, stay tuned for our follow up blog where we will delve into the details to determine the pros and cons of hiring CEO’s internally and externally.
The most common CEO hiring challenges
Hiring within the C-Suite is not straightforward. The search is so extensive that one mistake in the final stages can cost a business a significant amount of time and money. A common challenge is aligning the existing company values and strategy with the vision and skills of the incoming CEO. A company will have a rich history of growth, but so will someone in a CEO position. Transparency is key: you want someone with new ideas of course, but ideas that gel with the company values.
Another obstacle is being 100% sure on what it is you need from the CEO. A CEO will tend to have a broader background than a more focused CTO or CFO. However, do you need the CEO to lead more on the sales side of things? Perhaps one with a solid operational background? It means you might have to prioritise specific skills or expertise, so succession planning helps tackle this early on.
Diversity in leadership is becoming a notable challenge. Our sister brands released their annual salary survey reports, where the average rating for diversity in leadership teams was consistently below 5/10. Within eCommerce, Cranberry Panda revealed that employees scored diversity in leadership teams 4.8/10. TechNET Immersive respondents scored it a 4.2/10 for the gaming and immersive industry, while TechNET Digital shared that respondents scored diversity in leadership teams 4.8/10. Succession planning can allow for more research to determine how you can prevent your employees from feeling the same way. For more information, you can read our discussion on diversity in the C-Suite.
Can we help your executive search strategy?
TechNET CxO is the trusted executive search partner for many technology and IT companies! Explore our full range of research services to discover what we do. If you’re looking for senior talent, submit your vacancy today and we will be in touch! Remember, this is not the last post on this subject – stay tuned for our deep dive into succession planning, as we look at external vs internal hiring approaches for a new CEO.
