I am a partner at a small company and last week the CEO of 50 years stated it is his intention to step down. He has tasked me and the other partners with his replacement and has given us 6 months to do so. Thankfully he will remain on to coach and mentor his replacement. While it feels like the sky is falling, we know this is probably a good thing. I am seeking input as to things we partners should be thinking about and considering when looking for a replacement.
To the extent it helps guide responses, here is what we are talking about so far:
What are the goals and values of our firm.
Should the replacement be from within the company or outside.
Should the replacement be from our field or outside.
Our CEO is our top rainmaker so if we replace him from outside the field, how do we fund the CEO. (Cash flow is probably a problem that would crop up a year or two down the line after our current CEO retires completely.)
If we pick someone from outside the field, how do we determine an appropriate benefits package? If we hire internally, should the CEO receive any additional compensation?
Thanks for any responses, we are doing a tremendous amount of brainstorming right now.
Big Question -- One Aspect
Hi there,
wow, what a big -- and great -- question, very thought-provoking, I hope you will get many responses and will eagerly watch the thread.
One thing that immediately came to mind is a "life-cycle" consideration. How old is your company? What trajectory of growth or saturation are you on?
I've worked in environments from a start-up (5-25 employees), a mid-range international company (ca. 5.000 employees, ca. 10-15 countries) to a global player in the financial industry (100.000 employees, 70+ countries). The leadership skills required in each scenario differ widely.
Say, if you want to take your company to the next level, I mean SIGNIFICANTLY, like double/triple/quadruple earnings/revenues/headcounts and via acquisitions/expansions you will certainly require very different CEO material than if you are rather happy where you are in the market and just want to make sure you capitalize on your current position, cut cost here and there, e.g. through outsourcing, and then seek out opportunities organically.
I'm sure this is one of the considerations that you alredy imply with your question, "what are the goals and values of our firm", but just wanted to emphasize this specific aspect based on my specific experience.
Good luck with your thread, and of course, your search>
Jochen