Good Governance Guides

Good Governance Guide: No 5.3

Category: Performance
Subject: Succession Planning
Source: Chartered Secretaries Canada

In the current “Governance conscious” environment there has never been a greater need to ensure the quality of Executives and employees. Those at the very top of every organization must take an active interest in understanding current operations and sharing the vision of the future. The latter involves planning, part of which is succession planning as led by the CEO. Succession planning does not merely pertain to finding a suitable successor to the CEO. Rather, it is a process that requires constant monitoring and ongoing maintenance in developing a complementary profile of individuals to fill, over time, all senior Executive and other key positions.

The process involves:

• Establishing identifying and agreeing key positions – CEO should get buy-in from the Board;
• Establishing criteria and desired core competencies for each position given the proposed future path of the organization;
• Establish timelines;
• Invest in benchmarking against similar-type organizations;
• Monitor and report progress to the Board;
• Don’t hesitate to obtain the services of external professionals to ensure the integrity of process and the maintenance of objectivity; and
• Focus on leadership skills as well as managerial skills.