Succession

Succession: Mastering the Make-or-Break Process of Leadership Transition

By Noel M. Tichy

About the Author

Noel M. Tichy is a noted leadership expert, bestselling author, and trusted advisor to leading companies such as GE, Intel, Ford, and Merck. He is a professor at the Ross School of Business at the University of Michigan and has coauthored numerous business bestsellers, including "Judgment," "Judgment on the Front Line," and "Control Your Destiny or Someone Else Will." Tichy draws on his extensive experience working closely with CEOs around the world to provide a blueprint for leaders who aim to excel in succession planning and leadership transition.

Main Idea

"Succession" provides a comprehensive guide to mastering the leadership transition process, which is crucial for any organization's long-term success. Tichy emphasizes the importance of developing a robust leadership pipeline and presents a practical succession framework that can be applied across various types of organizations. He identifies common failure factors and outlines the roles and responsibilities of key players in the succession process, such as the CEO, the board, and the Chief Human Resources Officer (CHRO).

Table of Contents

1. Getting It Wrong: The Broken CEO Succession Pipeline
2. The Technical, Political, and Cultural (TPC) Context of CEO Succession
3. The Failure Factors
4. Cultivating Transformational Leaders on the Inside
5. Building a Successful Pipeline in Family Organizations
6. Building a Successful Pipeline in Nonprofit Organizations
7. The CEO Role in the Succession Pipeline: The Paradox of Power
8. The Critical Role of Human Resources in CEO Succession
9. The Role of the Board
10. The Insider/Outsider Dilemma
11. Leadership 20/20: Framing and Facing the Future

Getting It Wrong: The Broken CEO Succession Pipeline

Many organizations fail at CEO succession due to a broken leadership pipeline, which often results in the need to hire outsiders as successors. This failure stems from a lack of internal talent development and insufficient planning. Tichy argues that successful succession must focus on the journey, not just the destination, and requires the development of a robust leadership pipeline that considers technical, cultural, and political factors.

"Leadership matters. Continuity of leadership matters." - Noel M. Tichy

Organizations must invest time and resources in building a strong bench of internal talent, ready to step into leadership roles when needed.

The Technical, Political, and Cultural (TPC) Context of CEO Succession

Tichy explains that effective CEO succession planning must integrate technical, political, and cultural dimensions. Over-reliance on technical aspects often leads to failures. Instead, a balanced approach that includes understanding the organizational culture and navigating political dynamics is crucial for a seamless transition.

"Successful CEO succession cannot and should not be conducted in a vacuum." - Noel M. Tichy

A comprehensive succession plan involves a long-term development process that includes preparing leaders to manage cultural and political challenges within the organization.

The Failure Factors

Tichy identifies seven failure factors that often derail CEO successions: