A perspective on Government Contracting issues from The McCormick Group.
In a recent Washington Post article, Executive Coach Joyce Russell notes three significant consequences companies can face by not having an effective succession plan in place: 1) suffering major disruptions of work; 2) loss of consumer confidence; and 3) loss of internal talent. Never has the need for a strong succession plan been more important than today as more and more c-level executives are retiring from the workforce every year.
When we asked the Founder/CEO of a twenty year old defense contractor what was most important to him in considering his succession plan, his answer was simple: take the time and effort to thoroughly assess and develop your internal candidates while surveying the external candidate pool. While the process may be more time-consuming, it has helped him consider all of the different possibilities for leadership in his company. It also allows him the opportunity to develop his top internal talent’s executive capabilities regardless of whether they are tapped for the top job.
This approach raises another critical element of effective succession planning – communication. If goals, objectives, plans, and concerns aren’t openly communicated, trouble invariably emerges. By presenting the succession planning process as a training, coaching, and career development exercise for all of his key leaders, the CEO (together with his Board) is enrolling them in the process and confirming his commitment to them as key members of his team. While egos are involved and sometimes companies lose good people who aren’t selected, that risk can be significantly reduced through open and honest communication along the way.
Whether you are the founder, president, CEO, or Division Leader of a company, it is never too early to think about who will lead the business after you’re gone. If handled properly, through a thorough, honest, and sometimes time-consuming process, the right succession plan will allow you to move on with the confidence that the business you have built is in the best possible hands for continued growth.
TMG’s Take is a regular e-mail advisory produced by The McCormick Group. The company’s Government Contracting group combines the expertise of our knowledgeable consultants to help government contractors fulfill all of their recruiting needs. TMG’s Take covers topics across the spectrum of the government contracting industry, including business development, proposals, contract management, cyber security, compliance, R&D, technology, and finance. Please direct all inquiries to Brian McCormick, Executive Vice President at (703) 841-1700 or bmccormi@tmg-dc.com.
