Grooming your next CEO.

• Author: Robbins, Christopher
• Position: Brief Article

Of all the things I've done," said Walt Disney in 1954, "the most vital is coordinating the talents of those who work for us and pointing them toward a certain goal."

As much as we desire empowerment, we crave leadership. We want a torchbearer -- someone to show us the way, to mark a clear path. In corporate America, our leaders are CEOs, and the leadership task is simple: increase shareholder wealth. If wealth does not increase consistently, then the CEO is out and another takes his or her place.

Sometimes our CEOs are homegrown, brought up through the ranks, imbued with the company's culture and promoted to continue or strengthen a legacy. Other times, our CEOs are hired from the outside, bringing new initiatives and culture in an attempt to jump-start a company.

At some point in a company's life, leadership changes, and personal and company philosophies dictate how we go about choosing our next leaders. Is one way better than another? What about large companies versus small? How do you choose and nurture a CEO?

Utah is in a unique environment when looking at this challenge. Few businesses in the state are more than 100 years old--old enough to have gone through several leadership changes, but not old enough to set a precedent on how to choose a CEO. Most businesses in the state are only a few decades old.

Kent Murdock, president and CEO of O.C. Tanner since 1997, says, "This company has not had much practice in choosing CEOs. We've only had three in the last 70 years -- Obert, who founded the company: Don Ostler, who served as CEO for 40 years; and myself." Does O.C. Tanner have a philosophy behind choosing their future leaders? Murdock believes they do, even though Don was hired internally and Kent was hired externally. I prefer to look internally for our leaders," says Murdock.

For a small company, needs might be different. Craig Fry, general manager of Symbol Arts, says, "Smaller businesses have to look externally for leadership. They are growing and must add ability and talent that the company does not currently have." Fry says that as companies grow, management realizes that even they don't have all the skills necessary to compete on a new level. "The talent is isolated in one or two people. You have to look outside to gain the necessary skills." What about Steve Case, Larry Ellison and Bill Gates? "They are the exception," Fry says.

But are there any rules? Jim Collins, author of...