Without a clear succession plan, CEO exits can stall strategic initiatives, and this lack of preparedness is often felt throughout every layer of the organization, according to a Nov. 1 article from executive coaching firm Challenger, Gray & Christmas.
With hospital CEO exits climbing nearly 12% year over year, healthcare organizations can facilitate smooth leadership transitions through succession planning that prioritizes alignment and stability.
Proactive succession planning addresses the uncertainty that can come with unexpected — or even planned — moves at the helm. Responsibility for this planning typically falls to human resources and the board, with input from the current CEO when possible.
Here are five best practices to strengthen CEO succession planning, according to Challenger, Gray & Christmas:
1. Establish early alignment between human resources and the board to define leadership criteria. The board can offer insight into external expectations and long-term goals, while HR can provide perspective on organizational culture.
2. Continuously identify and assess internal talent with an emphasis on their ability to adapt and lead through ambiguity.
3. Support internal candidates with executive coaching. One-on-one development can deepen the leadership bench and signal investment in future leaders.
4. Provide employees with opportunities to lead cross-functional initiatives, helping build their confidence and offering insight into their readiness to step into top leadership roles.
5. Reevaluate succession plans regularly. Hold consistent stakeholder check-ins to ensure the plan reflects current priorities and that identified candidates remain strong fits.
