Ceo Tenure

5. Tenure of CEOs in the current day has become shorter than what it used to be a decade ago. This short tenure does not offer enough time to CEOs to groom their successors. Leadership succession also becomes a problem when organizations don't consider it an important issue worth years of preparation. These family businesses throw up some unique challenges for succession planning. Often the family firms are founded by an entrepreneur with a strong personality and tremendous determination.

Leadership succession was a problem for Bob’s company in the following way:

When Jack and the firm were in a critical juncture CEO, the founder of the organization, was not happy to appoint any outside person who is not a family member. Hence, Bob chose his son as the successor for his company. But Bob did not have time to groom his son, Jack.

Jack was not informed to many of the decisions and financials associated with the company information that would allow him to make an objective decision about his future role in the firm and no plan existed to manage the transition. These are the very attributes which make him a successful leader. 

If Jack and the firm did not make a mutual commitment to each other in the next year or so, Jack would likely pursue alternative career options, closing a window of opportunity. 

Jack and Bob's personal relationship had grown unfriendly and both had a tendency to intense emotional responses to work and personal issues.

Betty felt that Jack did not accord her appropriate respect in her role as COO, and was therefore concerned about her professional future as COO under Jack's leadership. She was anxious that any transition be smooth to enable her continued personal relationship with Bob. 

The emotionally-charged relationships between the three key players resulted in both personal and professional command-and-control conflicts, preventing the three from working together to develop a smooth transition plan.

Bob's existence did not reflect his...