Is CEO Succession Planning on Your Strategic Agenda?

on June 11, 2015

CEOs come and go – often sooner than planned. Unforeseen events such as illness, death, enticement by other companies, insurmountable differences of opinion, or corruption scandals can cause a CEO to leave the company more or less overnight. If no adequate precautions for succession were taken in advance, this can cause great uncertainty among investors and employees about the company's future strategic direction and success. The direct and indirect costs of a sudden departure of the CEO can therefore quickly reach astronomical levels. Companies like Yahoo! or Hewlett-Packard, for example, had to learn that the hard way.