Apple names former COO Tim Cook as top leader (photo: official Apple portrait)
What Steve Jobs’ resignation letter reminds company leaders to do
Although Steve Jobs’ seemingly sudden departure yesterday as Apple’s CEO comes as no surprise to technologists and business leaders who have been following Jobs’ health concerns, his announcement continues to leave the global technology world reeling.
Steve Jobs’ resignation letter: “I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple’s CEO, I would be the first to let you know. Unfortunately, that day has come. I hereby resign as CEO of Apple. I would like to serve, if the Board sees fit, as Chairman of the Board, director and Apple employee. As far as my successor goes, I strongly recommend that we execute our succession plan and name Tim Cook as CEO of Apple. I believe Apple’s brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role. I have made some of the best friends of my life at Apple, and I thank you all for the many years of being able to work alongside you.”
The part of Steve Jobs’ resignation that is most striking to me is not the declaration of his intention to resign from his current position. I am fascinated by the immediate launch of the succession plan the company already had in place, in case of emergency, such as the departure of its Chief Executive Officer – former Chief Operating Officer at the company, Tim Cook is already listed on Apple’s website as CEO. Whether it is a health issue, corporate restructuring, or merger and acquisition, the succession plan, if constructed and implemented well, causes minimal disruption to the flow of business. A company like Apple, as the unarguable leader in global technology with the iPad, the iPhone, and iPod, cannot afford the perception of an unstable entity – there are billions of dollars in sales and stocks riding on the organization’s smooth transition.
But, how many companies or smaller nonprofit organizations have taken the proverbial bull by the horns and sketched out a workable succession plan before a major event or upheaval?
By definition, a succession plan encompasses the process for identifying current employees to fill key leadership roles in the event that there becomes a vacancy. The executed plan minimizes a lag in leadership, allays employee worries about corporate uncertainty in the midst of transition, and provides as little disruption to the production of goods and services at an organization as possible.
Following are key issues to consider when developing a succession plan that we have used to aid clients in this daunting task:
SUCCESSION PLAN PRIMER
Elements of a succession plan
- Identify potential scenarios that would require the execution and implementation of a succession plan, such as funding changes, death, illness, corporate reorganization, merger or acquisition, physical move
- Start with internal areas/departments that are most immediately affected by sudden change in the organization, including the executive level of leadership, customer service, human resources, program management, and fundraising
- Assess employee knowledge, skills, and abilities (KSAs) required to successfully handle the position, including technical skills, fiduciary and budgeting skills, knowledge of foreign languages, exercise sound judgment, and oral and written communication skills
- Consult with department heads and employees to develop a list of individuals with promising leadership ability, their skill sets, and performance highlights to begin developing a list of potential employees to fill key roles
- Engage the Board of Directors or Advisory Board and allow them to participate, as appropriate, in the succession planning process
- Review your organization’s training programs and ensure that there is a methodology to capture employees’ KSAs, document them for future reference, and use them in the succession planning process
- Conduct scenarios that enable selected staff to demonstrate skills and make critical decisions prior to transition into a new role, including managing projects, developing complex budgets and forecasts, employee supervision, and organizing a press conference
- Document employees, their strengths, KSAs, and feedback from staff about the prospective leaders in a company database so that it can be referred to as needed to identify internal talent
- Include a standard operating procedure (SOP) in the succession plan, so that if the plan needs to be implemented for a division with little warning, there is a step-by-step guide for selecting the employee, transitioning that person, and acclimating him to the new role
While these elements of a succession plan are not exhaustive, they will help get your organization started on the right track when developing or tweaking the plan. The most important thing to remember is that once the succession plan is cultivated, it should be available to all leadership within a company, and updated as needed.
Does your company have an outstanding succession plan? Leave a reply below to tell us about it.
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