In this economy, having a succession plan could be a CEO’s saving grace.
Jason Smolen, co-founding Principal of SmolenPlevy, says that not enough businesses have solid succession plans in place—and waiting until the last minute is the worst thing you can do for your company.
Let’s look at the example of Steve Jobs and Apple. While it may appear as if Jobs’ stepping down as Apple’s CEO in August 2011 was sudden, he had a concrete succession plan in place that allowed for a smooth transition. Over ten years ago, he brought in Tim Cook who was able to grow within the company. Jobs also surrounded himself with a solid team. And according to Smolen, this model is scalable to almost any business. Even after Jobs’ death, the company appears to be running smoothly: their Apple Iphone 4s raked in 4 million in its first week on the shelves.
But then there’s the issue of naming the successor in advance: a situation that is never cut and dry. While planning ahead is essential, giving a blow-by-blow to outsiders is not always the best idea—especially if your company is prominent in the public eye.
To hear more about why revealing your successor beforehand may not be the best idea, watch Jason Smolen touch on these points and more on ABC7’s Washington Business Report.
Business is intricate; plan at least 5 years in advance. You never know what the future holds.
