The debate over
CEO succession in recent years has centered on the merits of internal versus external recruiting, but this is missing the point, write
George Davis and
Justus O'Brien, both consultants at Egon Zehnder International, in an article for
Bloomberg Businessweek. The real issue is not where a CEO comes from, argue the authors, but whether s/he has the competencies and experience required to do the job. Future strategy and business challenges are the major considerations for boards formulating CEO succession plans. Clarifying short, medium and long-term strategy should enable boards to define what kind of a leader is required in each of these time frames, the authors conclude.
