Inside CEO Succession: The Essential Guide to Leadership Transition

"One of the most important tasks (some would argue that it is the single most important role) of any board is CEO succession. Inside CEO Succession offers an essential guide to a process that, as the authors point out, is ′fundamental to the success or failure of a company.′" Douglas N. Daft, former chairman and CEO, Coca Cola Company; director, McGraw Hill Companies and Walmart

"An excellent book that highlights, and provides concrete examples of, the importance of managing both the interpersonal and psychological dynamics inherent in succession planning for today′s company . . . a recommended read for anyone who touches the talent succession process." Ajay Banga, president and CEO, MasterCard Worldwide; director, Kraft Foods; former chairman and CEO, Citigroup International Global Consumer Group

"Nothing matters more to a company than the selection of its next CEO. However, too many boards continue to treat CEO succession as a one–time event addressed only in the case of an emergency. Tom Saporito and Paul Winum provide a practical guide to board members by outlining the process involved in developing a seamless, thoughtful, and successful CEO succession program." James M. Kilts, former CEO, Gillette and Kraft/Nabisco; chairman, Nielsen Holdings N.V.; director, Pfizer, Inc., Del Monte Foods, MeadWestavco, and Metlife

?"While other books have been written on the science of CEO succession, Tom Saporito and Paul Winum go beyond the ′how–to′ and capture the subtleties and nuances that turn the process from an academic exercise into a practical art form. Inside CEO Succession is an excellent read and an essential addition to your business library." Robert Morrison, former vice–chairman, PepsiCo; former president and CEO, Quaker Oats;?director, 3M, Aon, and Illinois Tool Works

"Tom Saporito and Paul Winum have taken the discussion in a whole new direction, outlining the process and supporting it with best practices that truly enhance shareholder value by facilitating seamless leadership transition at the top of the house. It′s these kinds of insights that Tom and Paul bring, making Inside CEO Succession a must–read for boards, chief executives, and future CEOs." Robert Lawless, former chairman, McCormick and Company; director, Exelon Corporation and The Baltimore Life Insurance Company

Foreword: Douglas R. Conant, former CEO of Campbell Soup Company xv

Introduction 1

Part I: Why CEO Succession Is More Critical than Ever 5

Chapter 1: From Checkers to 3–D Chess 7

Chapter 2: Success or Failure The Cause and Cost 21

Chapter 3: Whose Job Is It, Anyway? 39

Chapter 4: RHR s Essential Point of View 55

Part II: The 10 Key Dimensions of Effective Succession 71

Chapter 5: Establish Board Ownership, Involvement, and Oversight 73

Chapter 6: Set Succession Time Frames 89

Chapter 7: Prepare for Emergencies 105

Chapter 8: Align on Strategy and Profile 119

Chapter 9: Build the Talent Pipeline 131

Chapter 10: Source External Talent and Manage Search Firms 145

Chapter 11: Select the CEO 157

Chapter 12: Proactively Manage the Transition 169

Chapter 13: Measure Performance and Improve Process 187

Chapter 14: Manage the Dynamics in CEO Succession 197

Epilogue: Perspectives on the Future 205

Appendix: Ten Questions a Director Should Ask 213

About RHR International 219

References 221

Index 229

Dr. Thomas J. Saporito (Chicago) Ed.D., is chairman and CEO of RHR International. Widely recognized as an expert in CEO succession, he has specialized over the past 30 years in consulting with CEOs, boards of directors, and senior management on succession planning and top management leadership. He works closely with chief executives and senior management on accelerating business strategies by strengthening individual leadership and team–based performance. A former member of the NACD Blue Ribbon Commission on CEO Succession, his career has taken him throughout the United States, Europe, and Asia.

Dr. Paul C. Winum (Atlanta, GA) Ph.D., is a senior partner with RHR International and serves as global practice leader CEO Succession. He is a regular contributor to articles published in the Wall Street Journal, Fortune, and Forbes. In 2007, he was awarded specialty board certification in Organizational and Business Consulting Psychology by the American Board of Professional Psychology and was elected as a Fellow of the American Psychological Association.