The tenure for static CEO’s is nasty, brutish, and short. A CEO must be dynamic, and an organization must prepare for the next CEO.
49% of S&P 500 companies replaced a CEO in 2011, and 80% of those were promoted from within. For public companies, the position that supplies CEO’s are: 72% finance, 71% operations, 67% sales, 51% marketing, 35% engineering, 20% HR, 20% R&D, 6% IT.
IBM’s CEO study showed that most think and talk the same, but it is what they do that matters. Outperformers are decisive; value openness above control; partner externally for innovation; and successfully manage change (i.e., IT integration with business).
In order to develop high potentials to progress up the career ladder, an organization should provide:
- internal professional networks,
- good management (career plan, visibility to upper levels),
- quality of direct reports.
Are you ready to replace your CEO?
