Appointing a CEO does not solve everything!
The Hürriyet article, "Appointing a CEO does not solve everything!" quoted Russell Reynolds Associates Consultant Burak Gorbon on family businesses and leadership. A translated excerpt from the original Turkish article is below.
Turkey Country Manager of Russel Reynolds, Burak Gorbon says institutionalization, which is a must for the growth and longevity of companies, is sometimes misunderstood: “Appointing a CEO does not make your firm institutionalized by itself. You need a functioning, independent board of directors and recruit the staff to support them.
Burak Gorbon, Turkey Country Manager of Russell Reynolds, a firm that provides leadership advisory and executive search in 40 countries including Turkey has underlined the fact that successful completion of generational succession is the most critical process in front of today’s companies. Gorbon pointed out that companies that manage this critical process best are the ones that are well institutionalized: “When you talk about institutionalization, appointing a professional executive to lead a company is the first thing to come to everyone’s mind. In fact, appointing a CEO by itself is not enough for institutionalization. Institutionalization and generational succession need to be a well-planned process that needs to encompass the whole company in the long run.” Gorbon has mentioned the role of well-established companies in stable growth and deepening of Turkish economy: “Just like in any other country, we need well-established companies that succeed from generation to generation in Turkey more than any other time. Companies that are cognizant of this need take important steps towards institutionalization. In this context, they occasionally consult us for professional executive recruitment. We recommend to them an institutional management system based on the needs of the company and the expectations of the founders.”
A CEO FROM WITHIN THE FAMILY
Gorbon, who leads Russell Reynolds’s operations in Turkey and the Middle East, talked to Hurriyet about the steps that family firms need to take for generational succession and institutionalization, latest trends in leadership advisory, and the international popularity of Turkish executives. Gorbon said in Turkey they have on average placed 50 to 60 high-level executives to national and international corporations annually and that this is an excellent figure for the sector: “Our operations are not limited to executive search. We also provide leadership advisory to the companies. It is not easy for a founder to entrust the business that he has brought from scratch to a certain size with much sacrifice to someone else. For that matter, institutionalization of the firm should have been planned a long time ago and it has to reach a certain level before a professional executive is appointed to lead. By the way, the professional executive does not have to be someone from outside. A member of the family can become the company CEO as well. There are many, very successful companies both in Turkey and around the world where, besides independent members of the board, all the management is composed of family members. The key here is to create a well-functioning board, top management and the staff that support them.
To read the full article, click here.