Leadership Succession Planning
May 22, 2007
Strategy, at its most basic level, involves people and their ability to execute a plan. A business must have a strong leader in place that can drive the strategy to a successful conclusion; otherwise, the business could potentially fail. You must also have a contingency plan in case that leader is unable to perform his or her duties. This is succession planning.People in positions of power need a succession plan that covers contingencies, and they shouldn’t wait for a crisis to begin the process. A power vacuum leaves a firm rudderless and shines an unwanted spotlight at the company’s poor performance and planning.
The U.S. Navy has a good succession model, one that I’ve successfully applied to my businesses. Naval leaders are responsible for grooming their personnel for command. For example, the commanding officer (CO) serves a tour of 18 months to two years. His second in command, the XO, is typically responsible for the management of day-to-day activities, such as personnel and logistics, freeing the CO to concentrate on strategic, operational, and tactical issues and execution. The XO also takes charge of the squadron in the absence of the CO.
The XO is the chief operating officer and chief financial officer rolled into one. The XO’s four direct reports include the department heads of operations, maintenance, administration, and safety. In turn, the CO’s only direct report is the XO. They maintain a “good cop/bad cop” relationship, with the CO playing the role of the “good cop.” Halfway through the CO’s tenure, an impartial Navy selection board begins to look at candidates to replace current XOs when they become CO’s. The board looks at the aviators in the current squadron as well as Navy-wide in other Hornet squadrons. The current XOs’ opinions carry a lot of weight since the people the board selects will eventually be serving under them. This process creates a smooth and orderly succession routine.
Succession planning is a way of life in the military. It has to be. In the days of sailing ships, if the CO died in battle, someone had to step up immediately to take command. That person had to be trained and ready to go at a moment’s notice or chaos and defeat would ensue. The model works for the Navy and it works in business as well.
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