In this article, Kenneth W. Freeman, the retired CEO of Quest Diagnostics, discusses his recent handoff experience to Surya N. Mohapatra in May 2004, and describes his approach to succession planning. He says it falls squarely on the incumbent CEO to put ego aside and initiate and actively manage the process of selecting and grooming a successor. Aggressive succession planning is one of the best ways for CEOs to ensure the long-term health of the company, he says. Plus, thinking early and often about a successor will likely improve the chief executive’s performance during his tenure. Ultimately, Freeman argues, a CEO’s true legacy is determined by what happens after he or she leaves the corner office.
The literature on CEO succession planning is nearly unanimous in its advice: Begin early, look first inside your company for exceptional talent, see that candidates gain experience in all aspects of the business, help them develop the skills they’ll need in the top job. It all makes sense and sounds pretty straightforward.
