For 10 years, CEO back-up strategy has been an increasing trend. As a country struggling frequently with economical crisis, a lot of companies in Turkey have started to making plans for the future of their companies, which surely involves a CEO back-up strategy.
Istanbul, 1st of September, 2008 – President of Boyden Turkey Özlem Ergün affirms that the change of CEO has to be evaluated in two different ways: Regular Process and Urgent Case. These changes affect directly business processes, executive committee, board, employees and shareholders.
According to Ergün, candidates can be from the company or external candidates but it is necessary to construct a plan. “The future has to be planned, and brilliant candidates should be determined in the company” affirms Ergün, she also affirms that the Board of Directors has to manage this process by making a shortlist of 2-3 candidates (from internal and external sources)
“To back up a CEO is a necessity”
“To back-up CEO is a necessity. This process should be planned in a long period and well managed. External sources have to be planned and prepared accordingly with the evaluation of internal candidates. The strategic planning of external sources is the main responsibility of us, Executive Search Firms.” affirms Ergün.
In family owned companies where the family is active in management, in case of the departure of the CEO, the family members are temporarily replacing the place. For multinational firms, the solution is the back-up CEO strategy via internal or external sources. Especially in publicly listed companies, to provide against the effects of the management gap during the replacement period of the CEO.