| Boards: succession planning for lasting successCompanies adopt careful approach to executive compensationHow to recruit top talent more effectively |
Boards: succession planning for lasting success Directors and Boards
Boards need to focus on finding their own replacements, writes George Davis, Global Co-Leader of the Board Consulting Practice of Egon Zehnder International, in Directors and Boards. With directors now expected to play a more active role and take on greater responsibilities, contributing strategic wisdom and even restructuring experience, finding suitably skilled candidates is no easy task, Davis adds. In his view, boards should begin by assessing their own competences and expertise, and go on to identify potential skill gaps as the company’s strategy evolves. Farseeing boards will even widen their search to include requirements that cover unexpected events and will examine a potential candidate’s fit with the board. According to Davis, adopting this kind of rigorous, proactive approach to board succession definitely pays off in the long term. “As boards go through succession planning, they become far more conscious of their collective capabilities, responsibilities, strengths, and what they require for success. In the process, they not only ensure that they will have the right colleagues in the future but they make themselves better boards in the present,” Davis concludes.
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