Leadership Succession Management as an Ongoing Governance Discipline

A board’s primary responsibility for the succession of the senior leadership of an organisation is increasingly acknowledged in light of clear evidence that inevitable changes in these positions often cause preventable disruptions to corporate performance. Australia, which previously has been lagging its counterparts in the US and the UK1, has recently tightened its governance guidelines to make boards more accountable for directly overseeing the succession of all key management positions2. As this translates into one of the most ‘hands on’ roles of a board, how can directors ensure that an effective approach is being implemented?