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KPMG 12th People Management

Symposium
Internal Successions:
The role of HR

Marshall
Goldsmith
Marshall@MarshallGoldsmith.com
www.MarshallGoldsmithLibrary.com

Goals for today


Review the human challenges in top
executive succession.
Discuss the role of key stakeholders
in the succession process.
Share ideas on how executives can
effectively coach or unconsciously
sabotage their successors.
Share ideas for preparing the
successor for the succession
process.

Publications
Succession: Are You Ready,
Harvard Business Press,
February 2009.
How Not to Lose the Top Job,
Harvard Business Review,
January 2009.

CEO succession
a human process
Self interest
Ego
Emotion
Involving many key
stakeholders

Passing the baton


of leadership
The relay race
It is hard when you are
winning
It is harder when you are
losing

Creating a great rest of your life


Three sessions, 24 executives
Frances Hesselbein, Alex Von Bitter and
me
No formal structure, 1 days
What am I going to do for the rest of my
life?

Letting go is hard to do

Wealth
Status
Perks
Power
Relationships
Happiness
Contribution

Key learnings
No one to talk with
Three key success factors:
Meaning
Contribution
Happiness

Success and failure stories

The three roles


in the final year
A. Running the business
B. Developing your successor
C. Creating a great rest of your life
Start with A go toward B
finish with C

Why developing internal


successors is worth the effort
The cost of external failure
Leadership development by
example
Leaving a legacy
Supporting key relationships

Key relationships
in CEO succession

The CEO
Peers
Direct reports
Analysts / shareholders
Customers
The Board

The CEO
The lame duck issue
If the CEO doesnt like you it
probably wont happen
Managing the complexities of the
CEO successor relationship
The panic at the end of the process

Peers
The competition factor
The need to continue the
companys leadership team
The balance between not leading
and being too pushy

Direct reports
The unique challenges of the COO
The balance of turn around and
treat people with respect
When your direct reports are the
CEOs friends

Analysts - shareholders
How analysts can impact
succession
New activism
What about Carl or Kirk?
Balancing go for it and
honest projections

Customers
Transactional or relationship
How they can impact succession

The Board
The final vote
How miscommunications
occur
The Board member who
wants to be CEO

The CEO as coach


When it can work
Why some CEOs dont want to be
coaches
Working with an external coach
The CEO as coach facilitator not
coach know it all

Summary and discussion


What are your succession
challenges?
Final questions