Choosing and preparing the next leader is a challenging but vital move.
The Retail Leader article, "Succession Success," quoted Russell Reynolds Associates' Norm Yustin. He explained that many retailors do not have satisfactory succession plans in place. The article is excerpted below.
When Randy Edeker replaced Ric Jurgens as chairman and CEO of Hy-Vee in 2012, Edeker had already worked at the grocery retailer for 30 years and had held positions at every level of the company. When Jurgens announced his retirement plans about six months prior, he specifically nominated Edeker as his successor.
"I retire with great confidence knowing that we have a strong, talented leader in Randy Edeker, and knowing he is surrounded by an outstanding team of executives at every level who will make Hy-Vee even better in the years to come," Jurgens said in a company statement issued when Edeker took over.
Edeker's rise to the top position at Hy-Vee, which has 240 locations in eight Midwestern states, fit the definition of good succession planning for several reasons. First, he was evidently well-prepared, with decades of experience at multiple levels. Second, he was identified as Jurgens' successor six months in advance, not through a hasty process at the last minute.
PUTTING IT OFF
Norm Yustin, a consultant with Russell Reynolds Associates, an executive search firm headquartered in New York, agrees: "Our experience is that many, if not most, retailers do not have satisfactory succession plans in place and unfortunately keep putting off the inevitable."
To read the full article, click here.