Spencer Stuart: Succession Planning For the Board
Industries constantly undergo some form of transformation, whether it is due to regulation, market disruption, innovative technology, new business models, or other forms of competitive pressure. For this reason, boards should evolve in similar ways to provide effective leadership when heading in a new direction or entering new regions. A recent article by Spencer Stuart considers how boards can welcome the opportunity to change through succession planning.
Among the findings:
- Embracing Change. There is growing recognition that boards with a good mix of age, experience and backgrounds foster better debate and decision-making. Spencer Stuart’s research revealed that there is a positive correlation between some amount of board turnover and company performance.
- Composition & Makeup. Boards should regularly review the makeup of their company and compare it with the company’s strategic plan to identify the capabilities that would be valuable to add to the board.
- Dealing With Risks. Assessment involving the creation of a skills matrix that helps stimulate a conversation about whether the optimal mix of skills, expertise and experience is available on the board and, if not, what needs to be done about it.
- Holistic Approach. Planning further ahead allows boards to widen their candidate pool and secure the very best talent. Instead of addressing succession on an as-needed basis.
The full article is published on Spencer Stuart’s website. Read the full report.