Jetrader - May/June 2008 - 22

CEO Planning Succession A basic guide to finding the right leadership for your company By Susan Thompson, Partner & Head of Aviation Practice, Odgers, Ray & Berndtson It’s wise to consider a number of possible scenarios and various kinds of chief executive in the light of those scenarios. If the picture shows that markets may change quickly, then fresh thinking will be needed. If the future looks rather different from the present—as is increasingly the case for any company operating in global markets—it will make sense to look outside, as well as within the company, for the next CEO. It is little wonder that succession planning is the number one concern for companies worldwide, as leadership uncertainty can inspire lack of investor conﬁdence. The company that makes the right appointment at the top wins a commensurately greater competitive edge. However, it isn’t easy to seize the executive e One leadership advantage. O of the hardest questions is whether to look inside or outside the company insi difﬁ for the next CEO. The d cult choice between inside and outside hiring can be made easier if the process is well managed. succession-planning pr So, how to begin an how to set about it? Leadand ership planning is an evolving process that needs e unforeseen industry changes and to respond to unfores mobility in an increasingly open greater executive mobi and global competition for talent. The thought competitio process should be as long term as strategy planl strategy planning it should be ning itself, and like str company’s changing market. sensitive to the compa The process must be seen to be rational and systematic. Shareholders and the workforce should feel a regular and more or less permathat succession is a reg nent part of the board’s work. The outcome will have a more profound impact on the company’s value than almost any other decision the board can make. decisio P roperly executed planning for the selection and appointment of a new chief executive ofﬁcer is one of the most critical and yet challenging parts of any board’s role. Getting the CEO right is its responsibility, led by the chairman, and it’s integral to the company’s long-term success. Successful preparation for a new chief executive should be long term. Ideally, it should be based on scenario planning. The idea is to identify as far in advance as possible the challenges and opportunities ahead for the company and then design the proﬁles of potential future CEOs around those strategic challenges and options. 22 The ofﬁcial publication of the International Society of Transport Aircraft Trading on

Jetrader - May/June 2008

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