A List of Names Is Not a Plan
Inc.'s Scott Hutcheson shows that General Dynamics' next CEO was developed through a sequence of widening roles; a replacement list asks who could fill the chair, a development plan asks what experience that person needs first.
Prompted by “General Dynamics Just Named Its Next CEO. The Real Story Started Years Ago”, Inc. (Scott Hutcheson).
When General Dynamics named its next CEO this month, the announcement was the least interesting part. The story started years earlier.
Inc.'s Scott Hutcheson points out that Danny Deep, who takes over January 1, isn't an outsider. He ran Land Systems, then Combat Systems, then Global Operations before becoming president last December. Each move widened what he was responsible for.
Hutcheson is upfront that the company hasn't said how it designed that path, but the lesson holds. A replacement list asks who could fill the chair. A development plan asks what experience that person needs first, and who is going to give it to them.
If you were out for six months, who would make your calls?
Whether you're a CEO or an owner-operator, you don't need a committee to do this. Your likely successor is probably the best technician or salesperson you have, and being great at one job doesn't prepare anyone to balance competing priorities across the whole company.
If you're the owner-operator, you probably make every cross-functional call yourself, which means nobody else has had the practice.
Test it out: pick one decision that only you make today and that crosses departments, like pricing, a major hire, or a capital purchase. Hand it to your most likely successor for next quarter. Let them make it while you advise from the side. And say the successor's name out loud to someone this week.
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Originally posted on LinkedIn ↗