Organizational strategy, organization development, change management

Executive Insight Thought Leaders showcase our latest thinking on organizational strategy, globalization and talent management. Each issue features one or more articles by Charlesmore consultants or our business friends and colleagues on important management topics. The publication also regularly features the results of our research in specific industries, geographic areas, or topics.

Executive Insight Thought Leaders are published monthly on this website as well as emailed to a confidential subscriber list around the world. Past issues can be found in the Archive section of this website. Subscribe >

CEO Succession and Corporate Governance

We recently co-authored a report for The Conference Board that examined the likely impact of the recent SEC policy reversal on CEO succession planning. In an early review, The Wall Street Transcript called it, “a must read for anyone interested in CEO succession and its implications for corporate governance and corporate performance.”

In its release the SEC reframes CEO succession as a risk management (and policy) issue and places its responsibility firmly in the boardroom. No longer can boards let management run CEO succession planning without tight oversight, including setting more specific standards and requirements, taking responsibility for results, and exercising discernable independence in the process. The policy change heralds a new wave of corporate governance scrutiny, as regulators and shareholders increasingly focus on CEO succession practices.

We invite you to download a complimentary copy and learn how to prepare for the inevitable governance and activist scrutiny ahead. We analyze the practical impact of the new SEC guidance, explain what shareholders need to know and why, and provide a straightforward guide on how to set up and manage CEO succession practices that satisfy stakeholder needs.

We hope that you find the paper of interest and value. Should you, or your colleagues, have an interest in discussing this subject further we'd be delighted to hear from you. As the governance landscape shifts on CEO succession planning, we advise Boards of Directors and company management how to best structure succession practices that mitigate risk, satisfy shareholder disclosure needs and prepare for planned and emergency CEO transition.

Why organizational strategy matters

Top performing companies successfully leverage their organization more effectively than rivals and derive over 64% more profit per employee than next-tier performers.

Few companies though look at their organization as strategically and holistically as they might - which is surprising considering the extent to which organization capabilities and performance drive business value today.

We contend that absent such consideration and definition, gaps and misalignment will frustrate business strategy and desired performance objectives will not be met. It’s as simple as that.

Developed and implemented effectively organizational strategy enables companies to convert strategic intent into sustainable and high performance results.

Client Services: Organizational strategy; Organization development; Talent management; Globalization

So what is organizational strategy anyway?

At a time when business leaders increasingly recognize the importance of organizational leverage and its connection to enterprise value, ironically and disappointingly organization priorities are most often relegated to the operating agenda.

So while most companies develop their business strategy in some formalized, purposeful way that typically translates into strategic plans on market positioning, investment, growth and major initiatives to pursue, the same degree of rigor is rarely applied to the organizational implications of strategy.

This is a mistake, particularly as strategies frequently stall in implementation - not because they are flawed in design, but because the organization is under-equipped to be able to deliver on the strategy.


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