CEO Succession – Selecting the CEO of the Future vs. Managing the CEO of Today
At Wells Onyx, we understand that CEO succession planning is one of the most critical responsibilities for any board. It’s a complex and often uncomfortable process that involves balancing immediate organizational needs with long-term strategic goals. Too often, boards focus on managing the CEO of today, leaving the organization vulnerable to uncertainty when the time for transition arrives.
Start Early – Long Before the CEO Is Ready
The key to successful CEO succession is to start early, long before the current CEO indicates an intention to step down. The goal is not only to find a successor but to ensure that the leadership handoff aligns with the future vision of the organization. This process takes time, and waiting until the current CEO is close to leaving can limit your options.
The earlier you start, the more time you have to identify and cultivate internal candidates. Early planning allows organizations to groom leaders who are already embedded in the company culture, reducing the disruption of bringing in an external hire. It also helps ensure continuity, particularly if internal candidates can be gradually given more responsibility to prepare for the transition.
Get Clear on Priorities
Before you begin the process of finding your next CEO, it’s important to align as a board on what the future looks like for the company. Does your CEO of tomorrow need to be someone who can drive digital transformation? Are you entering a period of growth that requires a leader with experience in scaling organizations? These priorities will shape your decision-making process and ensure that you’re selecting the right candidate for the long-term health of the company.
A Market Scan – Not a Formal Search
In some cases, conducting a market scan can be more beneficial than launching a formal search, especially when you’re in the early stages of succession planning. A market scan helps you understand the external talent landscape without fully committing to a search process. This approach allows the board to make informed decisions about potential internal and external candidates, providing insights into talent gaps, emerging leaders, and the market’s readiness to meet your future needs.
Our offering at Wells Onyx provides a tailored market scan, including leadership trends, competitive benchmarking, and a clear understanding of the talent landscape for your next CEO. Our fee structure is straightforward: a 1/3 retainer that will be credited to a full search should the board decide to move forward. This gives you the flexibility to start the planning process early, gather critical insights, and make the right decision for your organization’s future.
