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Advice & Counsel - Transitions: For Designated Successors

There is good news and not-so-good news for the person in the #2 spot expecting to move up to the next job.

The good news is that being at that point is recognition of the hard work it took to get there. Also it says that the CEO & directors think she has what it takes to be at the front of the succession line. The bad news is the success rate of designated successors is dismal. The benchmark research on this topic done in the late 1990s* showed that only 25% of those hired from outside the organization are successful in winning the top job or, once there, stayed for more than 18 months...and, while better, being promoted from within proves to be hardly a sure thing with only a 50% success rate.

How to be on the winning side of these odds?

Dan helps by:

• A political map. The higher one goes toward the CEO spot, the more important it is to master the political facet of the company. A key part of the culture (made up of relationships, alliances, and coalitions), it determines who has influence & how decisions are made. It is often opaque when hired from outside, but also difficult to read when promoted from within. In either case, the designated successor has only a brief period of time to understand the rules at the top. Dan lays out the political landscape to make more clear the promising as well as the treacherous paths.
• An Era Management Plan for operations, organizational, and personal improvement. For designated successors who usually have one chance to make the most of their time in the #2 job, it has proven essential to post the results necessary for promotion. Dan co-developed this approach in the early 1970s and has applied it since then with leaders in various types of organizations as they have implemented new agendas.
• Counsel on making the most of the time as #2. Whether it's for 6 months or 36, this period is the most important in one's career...and the challenges most significant. Expectations by self and others are highest, competition from those who also want the top job is toughest, and the spotlight is brightest. Current performance of what reports to him has to be flawless, requiring attention to the short-term. But at the same time, the #2 must display the strategic, long-term view expected of a CEO in order to be promoted to CEO (one of the few jobs where high potential alone is not enough for promotion)...and all the while he must be a good team member and remain loyal to the current leader. All this means that the pressure is high and the pitfalls numerous. A sounding board to help navigate this complex terrain can make all the difference.

* See Right From the Start, Ciampa & Watkins, Harvard Business School Press, 1999

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