Deck 10: Succession Planning

Question 1

A key difference between succession and career planning is the number of individuals involved in the future plan.

Answer 1

True

Question 2

Succession planning is only useful for CEO positions.

Answer 2

False

Question 3

Experts recommend that succession planning should begin four years before a CEO is expected to step down.

Answer 3

True

Question 4

Grooming an internal person to take over has traditionally been considered a key element of not-for-profit sector succession planning.

Question 5

Organizations that hire a CEO from the outside usually require six to 12 months before financial performance regains the level that existed prior to the replacement.

Question 6

Feedback loops in succession planning are optional.

Question 7

A successor should always be available, being groomed and ready to step in.

Question 8

Succession planning should begin to identify a successor shortly before the potential successor is set to take over to allow opportunities for significant developmental assignments.

Question 9

A clear exit strategy should be developed for an outgoing CEO.

Question 10

Developing a succession plan requires time and thought and is a daunting task.

Question 11

Which of the following is least accurate regarding succession planning?

A) Where a successor is not immediately apparent, uneasiness is intensified and may negatively affect organizational performance.
B) Organizations without succession plans are essentially leaving the development of their future leaders to chance.
C) Considerable time and effort may be required for outside persons to understand organizations.
D) Organizations without succession plans are more likely to have smoother leadership transitions.

Question 12

Which of the following statements would be a surprise instruction in succession planning?

A) CEO succession planning should be a board-driven, collaborative process.
B) Succession planning should be one of the governing board's two or three most important tasks.
C) The governing board and CEO should not discuss the process.
D) Any agreements or promises the board makes must be communicated to the succeeding board leadership and honored.

Question 13

Which is least common in grooming a successor?

A) Developmental tasks should be sufficiently diverse to expose the successor to the entire organization and its departments and operations.
B) Grooming an inside person helps an organization ensure that institutional memories will be preserved.
C) CEOs who have personally experienced being groomed support this process.
D) Grooming a successor is costly to an organization

Question 14

Which of the following should receive a low level of consideration in succession planning?

A) Inside candidates may have connections to social networks and psychological ties within an organization that can complicate efforts to change organizational culture if changes are needed.
B) Inside candidates may have inappropriate or limited experiences.
C) Consultants can usurp the succession planning process.
D) The possibility that the credibility of an outgoing CEO and management team is so damaged that only bringing in an entire new regime can sweep an organization clean.

Question 15

Which should cause no concern about adopting succession planning?

A) Developing a succession plan requires time and thought and is a daunting task.
B) Organizations without succession plans often complain of being swamped by more immediate and pressing issues.
C) Governing boards often lack sufficient experience.
D) Governing boards often fail to see how Governing boards often benefits their organization.

Question 16

Over the long term, why does succession planning save organizations money?

Question 17

List some reasons why grooming a successor is advantageous to an organization?

Question 18

What important economic issue must be resolved when grooming a successor?

Question 19

Why do some CEOs avoid discussion succession planning?

Question 20

Identify some myths related to succession planning.