Organizations typically have development and training plans for their executive team (C-Level) to identify their strengths and opportunities for improvement. This allows them to have an increasingly competent and well-prepared team, should the need arise for a CEO succession plan or a promotion to a similar position in another organization or subsidiary (in the case of groups or holding companies). However, based on our recent experience these development plans, while they allow for the improvement of some of the skills required for the executive level, fall short in developing the leadership capacity that would allow the organization to more effectively rely on those “second-in-commands” who are ready and willing to replace the CEO and the organization in key spaces with its stakeholders or other interested parties. They not only possess an expert functional vision of their respective areas of responsibility (for example, the CFO, in financial matters, or the CHRO, in human talent matters) but also possess a broader knowledge and understanding of the organization as if they were its CEO. It should also be kept in mind that the CEO can step aside at any time, and therefore it is crucial that the organization (led by its board of directors) promote this initiative, especially considering that in more than 70% of S&P 500 companies, the successor comes from within the organization, according to How the Best Boards Approach CEO Succession Planning – 2021, Harvard Law School on Corporate Governance.
This is an increasingly pressing need in today’s organizations, as the CEO has on his/her agenda: the organization’s own operations, the board of directors (increasingly demanding due to issues of corporate governance, compliance, ESG, among others), the interaction with other stakeholders who also require special time and attention, such as government representatives, associations or unions, shareholders and investors, among many other responsibilities. The truth is that the CEO doesn’t always have the time to attend to all these responsibilities and must often start to delegate his/her participation to these “second-in-commands” either on a one-off or recurring basis just as the CEO him/herself ensuring that objectives are achieved in each case and the organization’s reputation and culture are safeguarded.
So, what else can be done to keep these “second-in-commands” ready?
- The first thing to remember is that development plans with a traditional approach won’t always and effectively allow these candidates to be “ready” when the organization needs them
- Then, the CEO or the organizational must identify the key and specific skills (not general or traditional ones) that “deputies” should have, their current level or base line and their expected/needed level
- The CEO, as the main leader, should consider on his/her agenda to develop those specific candidates that can be part of this subset. At this point, it’s important to recognize the possibility that the best candidates for “deputies” can also be found below the C-Level, who are known as Leapfrog CEOs, according to Finding the Right CEO, 2022, Harvard Business Review highlighting the importance of a planned and well-structured talent map.
- In addition, the CEO and the CHRO should promote awareness-raising opportunities for this need with their executive team (and perhaps some candidates below the C-Level). Unlike traditional development plans, these programs do not only seek to improve their management skills, but also explicitly emphasize the need for these “second-in-commands” who are willing and ready to face these challenges and exposure on behalf and benefit of the organization.
How can we support you?
Our team structures “Senior Leadership Workshops” specifically aimed at raising awareness of this need. These workshops typically include:
- Understanding the specific need
- Context of current organizations
- Experience of headhunters and executive coaches with international experience in the search for “senior executives” and/or “second-in-commands”
- Reflective activities and/or surveys
- Other activities depending on the specific needs of each of our clients.
