Israel Business Management

With Haim Shani being named to a post in the Ministry of Finance, there is no clear successor to the CEO post at NICE Systems. Globes reported that there has been no right-hand man to Shani, so there will be many candidates mentioned over the upcoming months.

This has highlighted the importance of succession planning in a corporation for its executive management.

Companies have spent millions on plans in case of a disaster hitting their networks on business continuity. If so, why do companies not spend more time on planning what happens if one of the key executives is lost.

Sounds far-fetched...

Let me give you two examples:

One, the driving factor behind disaster planning for a lot of companies was September 11, 2001. When the planes crashed into the Twin Towers and into the Pentagon, there was a loss of business continuity. That led to disaster planning. But, companies, like Akamai, also lost key executives. What plans were in place for replacing those executives?

Two, we were on track to hit our quarterly number and all that was left was a signature of the CFO, which he assured us he would give after the weekend. The CFO died in a tragic para-gliding accident that weekend. I wonder if they had a plan in place for succession.

These are just two examples that highlight the need for succession.

Succession planning is needed for both large and small companies alike.

Obviously, succession planning allows companies to identify the replacements in case of an executive departure or loss.

But, it allows for preparation. Coaching and mentoring should be an integral part of the succession process. This can be formally (for example, management courses) or informally.

It needs to be part of the annual review process in HR. This will allow the plan to always stay current.

Make sure the identified successors are involved in the process. Too often, companies feel that they do not want to involve the successor. I am not sure what the fear is. But, if the successor leaves because he/she does not see their career path, you will have to start the process again.

There are many other factors and details to succession planning.

Haim Shani was an Israeli CEO held in the highest regard. I find it disappointing that he seems to have missed out on such a key strategic mission, like succession planning.