BT broadband office

In your company, who's really irreplaceable?

Posted 25 July 2008 at 11:34AM by Ian Betteridge in Doing business online

Is there such a thing as an irreplaceable CEO? That's what some investors in the US appear to have thought after Apple declined to answer questions about the health of its iconic founder, Steve Jobs.

After a conference call to talk about the company's results (which were outstanding), its share price fell in part because of speculation over Jobs' health and the company's refusal to discuss it. Jobs, who recovered from pancreatic cancer last year, has recently looked thinner than usual, something which has lead to speculation over potential further health issues.

Some commentators have speculated that should Jobs have to leave, the company could lose 25% of its share price - the kind of figure that makes any investor nervous.

But the real issue, and one which is relevant to every business, is simple: succession. Sooner or later (and hopefully in perfect health) Jobs will leave Apple, and the company will have to go on. Who replaces him? At the moment, there appears to be no successor who could inspire the same level of confidence in investors.

Planning for succession is one of the key challenges that a growing business faces. Every company likes to pretend that "everyone is replaceable". In reality, every company has certain key employees who it would struggle to replace - and, in the case of many small businesses, the departure of a founder could easily signal the end of the company.

So how do you handle succession planning? According an excellent article in Businessweek, the key is to "evaluate the skills and attitudes of everyone in the organization who is a candidate for a leadership position. Everyone? Yes, because the CEO isn't the only position that requires succession planning."

It's rare that you know when a key member of your team is going to leave, and it's vital that you have multiple candidates ready to step into a wide range of roles. Don't be seduced, though, by wishful thinking: you may have favoured employees you think might make it, given time, but if unless you have the time to groom them don't put them in the role without them being ready.

The key thing is to make sure there is a clear plan, well in advance of you needing it. For the head of a company, planning who follows them should be a key element of the job - not an afterthought. No one, even the best leaders, can go on forever.

Tags: apple, bt, bt broadbandoffice, jobs

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