CEO succession is without a doubt one of the most important events in any corporation. Yet a large fraction of CEO successions fail with often detrimental effects on all parties involved. Billions in shareholder value can be destroyed, thousands of jobs lost, and the high-flying career of the appointed CEO potentially destroyed too.
While corporate leaders are used to conducting post-mortems on failed projects, seldom does anyone make an honest review of what went wrong with a CEO succession and therefore mistakes are often repeated.
Here are five aspects of succession failure to look out for.