Keeping Friends Close: Planning for Succession in Uncertain Times

Welcome to the March 2020 edition of our newsletter!  In this issue, we’ll examine the importance of vetting new hires, or while promoting from within, during times of extreme uncertainty.

The Importance of Vetting Before Making Promotions

As a pandemic sweeps the globe, fundamentally disrupting livelihoods and business models alike, executives and board members are left with other grim considerations as well.  In addition to considering the welfare of their customers and the proper amount of capital expenditures going forward, officers and directors must now consider what to do if one of their own is incapacitated due to the pandemic.

For most companies, promoting from within, even if on a temporary basis, is the most efficient option: candidates with whom others already have existing relationships, whose skills and weaknesses are generally known to their peers.  But risks still remain.  If someone has spent decades at a firm in a middle management role, and is now considered for a higher position, it’s likely that the last time anyone looked into their background was at the time they were hired – not only were they a different person in many respects, but the technology and resources used to do such work was also very different.

While trust is a critical part of all relationships, understanding how someone’s life has evolved is also important.  Are there family tensions that could affect a person’s performance going forward?  Financial stresses?    Any conflicts that could result in negative press coverage now that this person is in a brighter spotlight?

Succession is an important principle to provide stability through chaos, and is relevant even when the leaders are not octogenarians.  By fully understanding the personal and professional picture of candidates – even those you think you know well – your organization can go forward with greater confidence in difficult times.