CEO succession planning.

Working with Boards to avoid risk and improve CEO efficacy, organisational performance, and values alignment.

 

We think of CEO succession as a process linked to your organisational strategy.

Organisations need a thoughtful succession plan to avoid unnecessary CEO turnover.

Luminary’s CEO evaluation methodology can help you achieve optimal internal equity and external competitiveness to compete in an evolving talent environment.

Our contemporary approach to CEO succession planning consists of three components.

Identifying and developing potential internal CEO successors can take years.

Ideally, CEO succession is a multifaceted, long-term planning process starting when a new CEO is appointed. If that isn’t possible, succession planning should start sooner rather than later.

When developed over time, an effective succession plan fosters partnerships among directors, management and potential internal candidates. This also gives the Board time to build a complementary and supportive team around one or more CEO successors.

Typically, we work with Boards to advise them on the following:

1. CEO Successor Role Requirements

  • consider your Leadership Capability Framework;

  • advise on the latest CEO recruitment and selection process talent search requirements;

  • create a future CEO success profile

 2. Luminary CEO Successor Attribute Assessment Ranking Tool (L-CAR®)

  • incorporating your Leadership Capability Framework;

  • an agreed leadership behaviours framework;

  • review and adapt your CEO Position Description; and

  • co-develop our proprietary Luminary Competency Assessment Ranking (L-CAR®) for your selection criteria.

 3. CEO Succession Planning Readiness Chart

We will work with your relevant committee to develop a roadmap that serves several purposes:

  • it provides a snapshot of the CEO successor attribute assessments;

  • it enables the Board to focus on the development and investment of one to three potential successors with a planned readiness strategy that is adaptable to cover mid to longer-term scenarios;

  • consider internal talent and confidentially benchmark with external options; and

  • it highlights the bench strength of key talent within the business and potential strengths and areas of talent risk that the CEO can consider and make appropriate plans to ensure the sustainability of the business.

Draw upon insight, science and data to deliver results.

Our approach to developing CEO succession planning is rigorous, structured, and comprehensive. The need for increased agility to attract, nurture, and retain chief executive talent has never been more critical.

In many ways, CEO Succession is the pinnacle of leadership planning, requiring years of experience and preparation to go well. We incorporate data, science, and human insight to ensure that you develop a robust succession plan.

Remember, succession planning is a Board and not a management responsibility—your plan should be reviewed periodically rather than owned.

The best CEO succession planning is a Board responsibility that calls for collaboration with the CEO and your management team.

Engaging Luminary to accompany you through the process will set you up for success, ensuring that you find the best fit for now, and that your organisation is ready to meet the future with confidence.