From Success Plan to Succession Plan: 10 Tips to Choose Your Next CEO

In the millennial generation, the idea of staying at the same company for your entire career is dying away. Board of directors assume change is good, and employee turnover, especially management turnover, are at record highs. If you’re a CEO moving on to a new position, the company may ask you to name your new successor. While the task sounds daunting, here are 10 helpful tips in choosing your next CEO. 

1. Know When to Move On – Having second thoughts about moving on can make the transition tougher for the staff and the new CEO. When you’re ready to l move on, commit.
2. Have a Timeline – Start making a plan on when you’re looking, when you’re announcing you’re leaving, when you’re hiring, when the transition will take plan, etc. Having a schedule will make this the priority it should be.
3. Look Everywhere – Start in-house; employees who know how the company is ran usually have the best ideas to keep it on track. Focus on looking for outside applicants with hands-on experience who know the industry, not just a good resume.
4. Don’t Hire a Duplicate – Companies need to grow and change, and finding a candidate who finds new strengths in the company is more advantageous than a clone.
5. Find Someone Who Matches the “Culture” – The CEO creates the feeling and the atmosphere of a company. Find someone whose addition won’t shake up the flow of things in a bad way.
6. Get Input from Colleagues – If you’re planning on leaving the company completely, ask around to make sure that the new CEO will have the support of the current staff. Colleagues know what traits they want in a CEO and what traits they don’t.
7. Resumes are Only Half the Story – It is surprisingly easy to have an impressive resume without accomplishing much. Candidates who have a wide range of employers might not have much hands-on experience while long tenures at a company can show loyalty, not lack of ambition.
8. Be Objective – Certainly trying to fill your own position, you’re going to be personal and try to compare candidates to how you’ve performed. Take yourself and your opinions out of the decision, and make the choice that’s best for the company.
9. Pick Someone Who You’d Want to Work For – The company isn’t full of mindless drones, it’s full of people. Imagine that you weren’t leaving and instead hiring your own boss. The best CEOs are leaders that people want to work for.
10. Find the Drive That You Have – It’s hard to be a leader without passion. Find the drive that made you want to go to work every morning and if you can find that quality in a candidate, I think you found your CEO.

You know how important a CEO is to a company and what it means to lead your employees. Always remember that a good CEO thinks of his/her employees first and makes sure they’re taken care of before you are. If you’re given the opportunity to choose your own successor, don’t take the responsibility lightly. The company won’t forget you, so when you come back to visit, make sure that you go back to a company that is in good hands.

For more information about Business Succession Planning and choosing the next CEO contact the Goosmann Law Firm at info@goosmannlaw.com or call (712) 226-4000.