CEO Succession: When Boards Consider One of Their Own for CEO
- Marion Heil
- 10. Feb.
- 2 Min. Lesezeit
Aktualisiert: 12. Sept.
Continuing our conversation about CEO succession planning...
After exploring internal candidates and the incumbent CEO's role in previous discussions, I want to tackle another angle we are seeing in succession scenarios: Boards considering one of their own members for the CEO role.
The "Easy Solution" Trap
It often starts innocently enough during succession discussions: "Why look elsewhere when Sally has everything we need – and understands our challenges intimately?"
"Why look elsewhere when Sally has everything we need – and understands our challenges intimately?"
From my experience, board members can indeed bring a unique combination of fresh thinking and cultural understanding to the CEO role. However, I've also seen boards gravitate toward this option as an "easy solution" during turbulent times – rarely with good results.
Creating Safe Spaces for Honest Dialogue
Let me be candid: These discussions are among the most sensitive I handle as an advisor. When a board member is being considered for CEO, they're often sitting right there in the succession planning meetings. Our approach? We always start with one-on-one discussions with each director, then structure group discussions so everyone can speak freely – including sessions without potential candidates present. Creating these "safe spaces" for open dialogue is crucial.
Creating "safe spaces" for open dialogue is crucial.
Two Contrasting Outcomes
Two contrasting cases stand out: In one, a board was evaluating selecting one of their own for the CEO role. We stepped back, ran a comprehensive process considering internal stars, external candidates, and the board member equally. This led to a different – and deemed better by everyone – outcome. In another case, a board member did become CEO and successfully drove transformation while preserving core strengths, precisely because they straddled the insider-outsider balance perfectly.
The Key Learning
The key learning? No succession path should be your default. But equally, no path should be off the table if you're willing to do the hard work of proper evaluation.
For deeper insights on this topic, the Harvard Business Review article "Should Your Next CEO Come From Your Board?" (Nov-Dec 2024) offers valuable research-backed perspectives on this complex succession scenario.
No succession path should be your default. But equally, no path should be off the table.
ABOUT THE AUTHOR
Marion Heil is the founder and managing director of Board+CEO Advisors. She is based in Vienna.
