Every year, between 10% to 15% of corporations require a new CEO. However, many fail to plan for a new CEO causing chaos in the company. This infographic fromlooks at how this issue can be solved.
There is a big difference between succession planning and replacement planning. A replacement plan is generally a stopgap measure and the incoming person will have had very little communication with the outgoing CEO. Succession planning is focused on talent development and the incoming person will have received training in how to perform in the role of CEO and will generally be a long-term solution.
In some companies the CEO has too much power and this means they will be in complete control of any succession plan. Being too reliant on the current CEO is very unwise as who knows what will happen if that person develops a health issue or decides they want to leave the company. Find out more in the infographic.