Navigating a Complex Succession at a Multinational Fortune 500 Company

Situation

A multinational Fortune 500 Company had experienced record growth and success under a highly effective CEO with strong board support. However, during the succession planning process, the Company faced an unexpected challenge after tragically losing its lead internal CEO candidate. With no other viable internal options identified, largely due to an overreliance on external senior executives who failed to demonstrate potential, the Company found itself in a precarious situation. TMG was engaged to assess and identify potential internal candidates and to coach and develop the identified talent to reach their full potential.

Approach

TMG began by interviewing each Board Director to gain a deep understanding of the skills, characteristics, and experiences necessary for the CEO role within the context of the Company’s unique business and cultural dynamics. This process allowed TMG to develop a highly tailored CEO Key Selection Criteria to assess potential candidates against. By aligning the Board on selection criteria, TMG uncovered internal, viable leaders who had previously been overlooked.

Through a thorough assessment process, TMG identified an internal leader who had demonstrated strategic and visionary success and strong leadership capabilities. TMG developed a comprehensive written report detailing the candidate’s viability, strengths, development areas, and ratings against the Key Selection Criteria. These findings were presented to the Board of Directors.

TMG then coached the identified internal candidate, focusing on meeting the Board’s expectations for the CEO role and creating a robust, focused narrative highlighting the candidate’s viability. Once the Board selected the recommended candidate, TMG provided strategic advice on managing the risks associated with the transition. TMG also offered onboarding coaching for the new CEO to support a successful transition.

Outcomes

After assuming the role of CEO, the recommended candidate successfully grew the Company’s revenue by a record amount and effectively navigated the challenges of the COVID-19 pandemic by implementing a long-term strategy with buy-in from the Board and major shareholders. As a result, the Company’s stock price increased by over 50%.