Q010
how do you build
A deeper Bench?
our take .
When we think about developing a leadership bench, we think about Mike Norvell. He knows – and teaches – that you’re only as good as the assistants you hire, that everyone in the program should be given outsized responsibility, that people up and down the line should be pushed into the spotlight, and that every person should be encouraged and expected to treat their jobs like they’re the head coach.
So, the why: The deeper your bench, the stronger your organization and the more prepared it is to take advantage of opportunity. The more employees who think like owners, the better the stewardship. Plus, the more you can attract talent who also shares the same mentality.
And, the how: Give people outsized responsibility (as long as there is an organizational safety net); cede the spotlight and talk up your high potential performers; demonstrate growth paths so you attract top talent.
on paper.
character to consider: Mark Hurd
When the bench is empty
Hewlett-Packard (HP) was riding high under the leadership of CEO Mark Hurd, who had significantly improved the company's financial performance since taking the helm in 2005. Given its size and influence, HP was expected to have a solid, well-thought-out succession plan in place, especially around transition at the top. The ideal (and the expectation) was that the board would develop internal candidates, preparing them for a seamless handover of the CEO role in case of an unforeseen event. In 2010, Mark Hurd resigned abruptly following allegations of misconduct. The rapidity with which he stepped down revealed that HP’s succession plan was poorly planned – and impossible to execute well. Instead of promoting a well-developed internal candidate who was familiar with HP’s culture and business operations, the board hastily appointed Leo Apotheker, an external hire with a background primarily in software, not hardware (the core of HP’s business).
And the next guy doesn’t last
Apotheker’s tenure as CEO was short-lived and chaotic. His lack of experience with HP’s hardware business led to strategic missteps, including the ill-fated acquisition of Autonomy, a deal that resulted in an $8.8 billion write-down. Moreover, HP lost significant shareholder value, and the company struggled with leadership instability. Apotheker was removed after just 11 months, and HP was left reeling from the consequences of a poorly handled transition while facing yet another change in the top spot.
People are messy, so succession plans are (usually) nuanced, with many moving pieces and interlocking parts. The absence or failure of any one of them can make or break a transition. Not having an internal candidate prepared to step into the CEO role certainly counts. Apotheker, a panic hire, is far less likely to result in a successor who’s aligned with the core business, prepared to step up, and able to execute on strategic needs. Develop your leadership pipeline, have a contingency plan, and, while it can feel daunting, make sure the key elements of your business’s succession plan are in place.
Works Consulted
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