SSION HE TOP LESSON #5: IT IS CRITICAL TO HANDLE POTENTIAL INTERNAL CONTENDERS WELL Handling internal contenders well has a significant impact on how they feel about the company and their ability to still see their future in the organization. Position the entire exercise as a developmental opportunity and provide constructive feedback and specific recommendations for folks who are not selected for advancement. LESSON #6: AVOIDING THE CHALLENGES OF SUCCESSION MAY HAVE A HUGE DOWNSIDE Research from FTI revealed that 43% of CEO transitions are unplanned, with 27% due to either forced resignations or unexpected issues that arise; the rest are voluntary unplanned resignations. Unforeseen leadership changes not only impact the valuation of the business, but banks without good succession management are also proven more likely to sell. Institutions that have survived and thrived over a lengthy time horizon have benefited from the successful execution of strategy, which flows from a continuity of leadership and thoughtful planning. Bank boards of directors and incumbent CEOs must recognize this imperative and regularly focus on succession and talent at the top of their agendas. Alan J. Kaplan is the founder & CEO of Kaplan & Associates Inc., a retained executive search and talent advisory firm based in Philadelphia. You can reach him at alan@kaplanpartners.com or (610) 642-5644. 13 The CommunityBanker
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