Directorship Magazine
Debunking the Myth of the Fast and Successful Succession Plan
How do you get CEO succession planning right? Start with the next generation of leaders.
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This sample CEO succession process originally appeared in NACD’s 2014 publication Success at the Top: CEO Evaluation and Succession. The template includes a sample executive evaluation form and rating scale for assessing internal CEO candidates.
The chief developer of this process was Richard Gould, who served as a resource to the original NACD Blue Ribbon Commission on CEO Succession, chaired by Jeffrey Sonnenfeld and convened in 1998.
Succession Planning Process
- Determine criteria or qualifications for the CEO’s successor.
a. Envision challenges facing the company’s CEO in the next 5 to 10 years.
b. Identify qualities and skills needed to meet those challenges.
c. Develop rating process to evaluate candidates against the criteria.
- Identify possible candidates for succession.
a. CEO and board agree on individuals to be considered as possible successors.
- Assess the capability and potential of possible successors.
a. CEO and board members complete assessments of each candidate.
b. Tabulate ratings for collective view of candidates.
c. Board members review assessments and share views.
i. Seek consensus about the candidates: specific and overall conclusions.
ii. Identify the points of difference that need to be reconciled.
iii. Identify what needs to be learned about candidates.
- Complete development action plans.
a. To prepare the candidates for promotion.
b. To further test their viability as successors and readiness for promotion.
- Review progress.
a. Update assessment and conclusions about promotability.
i. Identify what has been learned about candidates.
ii. Consider if experiences have improved readiness.
iii. Identify additional developmental actions.
b. Reconsider availability of viable candidates.
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