It is the desire of those who teach and hold doctorates to become tenured in the educational facility of their choosing. Typically, in Corporate America, The CEO has climbed the ladder of success within an organization. Maybe this individual started in the mailroom, or was hired right out of college. In some cases, the person was hired through a recommendation by another executive either inside or outside the company or a Board member. If the person making the recommendation is trusted, perhaps the one being recommended is a good fit. Time will tell.
Time may indeed tell, but by the time a mistake is discovered, you may be out of time and it will be too late. Mulling over some recent examples of succession nightmares, may help with your succession planning. Bernard Ebbers became a self-made millionaire by investing in motels. Soon he discovered LDDC (Long Distance Discount Company). He invested in this company. While operating WorldCom, it became one of the largest companies in America. Mr. Ebbers was the driving force growing the company through no less than 75 acquisitions. He was also over-zealous in his attempt to have WorldCom as the number one stock on Wall Street. He may have had the talent for making deals, but not so much for managing them into a cohesive, well-functioning and profitable company. WorldCom could no longer bring in the revenues it needed, there were ethical questions, and soon thereafter, WorldCom was no more. While Mr. Ebbers was the founder, there weas no one in place who could have succeeded him. Bear Steams, an 85 year-old, well-respected corporation suffered a similar fate.