Sample White Paper: Message To A Future CEO

A letter written to someone Dan has advised, generalized here to maintain confidentiality.

Dear _____ :

You are an executive vice president running one of two major divisions and been told you are seen as a high potential talent on a fast track. You consider yourself to be CEO material and expect to be in the top job in the next few years. Your CEO is 63 years old and a new EVP who is a few years older than you are has just been hired to run the other large division. The rumor is that he was brought on as a backup to the CEO. When we talked about this the other day, I asked "What's your plan?" and told you I'd write you with some thoughts before we get together next week.

Perhaps the biggest mistake made by people in your spot is assuming that the most important key to the CEO's office is beating your performance targets. While that's what got you to this level, the reality is that it is not enough to win the brass ring. You've done a great job in your career and tackled some very tough challenges...your stint as country director in India when no one believed the company could establish a beachhead in an emerging market was worthy of a Lewis & Clark award. And, you deserved all the praise you got when you pioneered continuous improvement in the corporation. But, I'm going on record to say that as impressive as your career has been, all it's done is gotten you almost there.

You're a very competitive guy and can channel all your abilities very effectively when facing a challenge - and the bigger it is the harder you work. But, there has been a cost to the battles you have won. You've heard the feedback: that you're tough to work with, not as good a team player as you are being in charge, and that you're more interested in your own division than in what is good for the whole corporation. I know you believe that all that is just sour grapes from people who lost a fair fight. There may be some of that since no one likes to lose...but what if, in addition, they are right.

Don't misinterpret this...I'm a fan of yours, and I'd like to see you get the CEO job here. You've earned the chance to run this company. And, as I've said to you, you have what it takes to be a very good leader. Almost.

There are three pieces of advice I have.

Put yourself in the board's spot. The company has been on a good run, something the board wants to maintain at all costs as Joe retires as CEO, and as you know, that process will last for the next 18 months. The board will give the nod to the person who can best stay above the detail and maintain a strategic view. But you have been so focused on quarterly targets and yearly revenue growth that the board hasn't really seen your strategic side. Also, the directors want someone who can do a great job of representing the company publicly, with analysts, media, and investors, but you haven't had much experience on that stage.

You believe you can handle these sorts of things...so do I. But, understand that neither of us has an electoral vote in this election. The only people who do are the directors. And, don't make the mistake of thinking that Joe will convince them to make you his successor. In this era, the independent directors will treat him as just another source of information. They are your customers and just like you do with customers of your division, you need to fully grasp their needs, wants, and expectations...and look at this decision from their point of view.

Something I've suggested you consider is becoming a director of another public company. Joe said he'd support that and I'll help you prepare. But, you've said you don't have the time and that it could take your attention away from running your division. I believe that's shortsighted. The benefits are huge for a #2 to be in a director's chair judging the performance of senior management and grappling with the sorts of problems that the board of your company faces.

Be a student of leadership succession. There is not a lot available in the literature on succession at the CEO level. The majority of what's out there is not helpful for people in your spot...more workbooks for mid-level managers to move into the upper ranks, they're not sophisticated enough to be of real help to you. But there is some useful material geared to your situation...find it and study it. Learn the best theory on succession - not in general, but at the very top because succession is different there than anywhere else.

Also, learn why only a quarter of the people hired from outside to CEO, and just about half of the ones promoted from within, are successful. Why did Jack Welch extend the success that Reg Jones had achieved before him at GE but Doug Ivester was gone 25 months after succeeding Roberto Goizueta at Coca Cola? How did Ken Chenault manage a smooth transition with Harvey Golub at American Express? What did Lou Gerstner do in the first six months after being named CEO that caused a faltering, demoralized IBM to line up behind him? Also, in addition to studying these cases, pay attention to other kinds of handoffs. For example, transitions of U.S. presidents are necessarily seriously considered and well prepared for...and much more is in the public domain than with most corporate handoffs.

Help other people succeed. One of the next CEO's most important tasks will be to not only attract new people to meet growth needs but also to retain the talent the company has today. As you know well, two very talented people left when you won your current job, and you've heard the rumors about the top people under the new EVP. And, if you win the top job there may well be more (just as you would think seriously of leaving if you don't get it). But the strategy requires that turnover at the top two levels be kept to an absolute minimum. Why am I saying this to you?

Because you have been a tough taskmaster. It has kept your division performance at the top of the industry, but it's also caused some talented people to leave. And, you hold your peers to the same high standards you have for yourself. Nothing wrong with that...except that it has led to some relationship problems. The people who are your peers now could be your direct reports in a few years; and a few want the same job you want. If you win it, will they follow you and be loyal? Some will if you have helped them be successful.

I know what you're thinking: helping them will increase competition for the CEO spot. Give Joe and the directors more credit...they know a zero-sum outcome at this level would hurt the company for years. Show that you care as much about the common good as you do about your own numbers by going out of your way to help other people be as successful as you are.

So, there is just one person's opinion about getting to where you want to go. You should also be asking the opinions of other people whom you trust. You have some time to figure this out. Use it well, but get started now.

Look forward to seeing you soon,
Dan