Has it ever happened to you that while you were driving back home from an outstation trip, a speeding car suddenly came from the opposite direction, went out of control, crossed the median, and came almost in front of you? However, you could manage to prevent your car from a collision. Well, you had a narrow escape, yet I am sure the next few minutes must have been quite horrifying. You must have felt as if your heart pounced into your mouth due to an abrupt increase in heart rate. Nevertheless, after some time, when your heartbeat came down and you became normal, you would have resumed driving back home. Do you remember the thoughts that would have come to you at that time?
- What if my car would have collided with the one that lost control?
- What would happen to my family?
- Have I made sufficient arrangements for them to live comfortably after my death?
- Have I informed my spouse/children about all my investments?
And so on. Such thoughts are quite natural. All of us take things around us for granted. Until a tragedy strikes, let alone planning for the worst, we do not even allow such thoughts to persist. I distinctly remember when, in 2001, an earthquake struck Gujarat, located in western India. I ran barefoot with my family down the staircase to get out of the building. I took no money, chequebooks, credit cards or car keys. Even the doors of our flat were left unlocked. On that day, I had thoughts similar to the ones mentioned above.
- What if my building would have collapsed and only I could not have come out of it?
- What would have happened to my family?
- Have I made sufficient arrangements for them to live comfortably after my death?
- Have I informed my wife about all my investments?
Is this situation true to corporate life as well?
- What if something happens to the CEO or a senior executive of an organization?
- Who will replace him?
- Will the new incumbent have the maturity and the desired competence to execute all responsibilities?
- Are people other than him groomed enough to fill the void that would be created by his absence?
It is true calamities do push us to plan for the worst, and that is where the need for a solid ‘Succession Plan’ arises. Is your organization ready with a succession plan to deal with a situation which may arise due to the sudden death of any of its senior executives?
- What is the state of preparedness at your organization?
- Are you ready with what is referred to as the ‘bus crash envelope’?
- Have you named somebody who can replace the CEO, at least on an interim basis, giving you the time to choose their successor?
This is important. The fast-food giant, McDonald’s Corp., did exactly the same. Within hours of the sudden death of its 60-year-old Chairman and CEO, Jim Cantalupo, the Board of Directors announced Charlie Bell, the 43-year-old President and COO, as his replacement. This swift decision by the organization gave immediate reassurance to all the stakeholders: the employees, the franchisees, and the investors. Everyone came to know and rested assured that a knowledgeable leader was in place who would provide continuity of business.
McDonald’s is not the only company that suddenly lost its senior executive; Gillette also lost its 61-year-old Chairman and CEO, Colman M. Mockler, due to a heart attack while at work in his office. Though the name of Alfred M. Zeien, President and COO, was decided a few months back, the question of who would succeed Mockler remained unresolved. The Board of Directors took an entire month but announced the name of Zeien as the new Chairman and CEO…
(Excerpts from the talk delivered at Malaysian HR Congress, Kuala Lumpur)
(To be continued)
(To read the remaining parts, please click on the link – (Activity | Vivek Mehrotra | LinkedIn)
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