This archive report was first published on 1 August 2019.
The death of Safaricom's CEO, Bob Collymore, in 2019 caught the board off-guard, highlighting the importance of succession planning. Published on August 1, 2019, this article explores the challenges of CEO succession and offers solutions to overcome them.
At the corporate level, succession planning is essential to avoid negative organizational consequences. However, planning for the CEO position is particularly challenging due to the CEO's revered status and the difficulty of finding a suitable successor.
One of the main difficulties is the CEO's 'immortal status,' which makes it difficult for the board to consider succession planning. This mentality can lead to speculation and ignorance when the CEO's position becomes vacant.
Another challenge is the discouragement of internal candidates from pursuing the CEO position, which can lead to the loss of suitable candidates. External interference can also complicate the succession process, as uninformed outsiders may exert influence on the selection of the next CEO.
Additionally, the ethnicity equation can be a factor in the selection of a CEO, particularly in organizations operating in areas with strong community ties. This can lead to the selection of an unqualified candidate who may dismantle existing corporate structures and processes.
Finally, sourcing a CEO from outside the organization can be beneficial, but it requires careful consideration to avoid disrupting the existing culture. The board must exercise its corporate governance to ensure a smooth transition that champions the organization's ideals.
