Transitions 101.

• Author: Kristie, James
• Position: EDITOR'S NOTE

SUCCESSION PLANNING is not a market," but if it were we could easily say that the crisis in the credit markets this past year instigated a companion crisis in the succession planning market.

It's shocking how unprepared certain organizations were for both crises. When you see companies of the prominence of Citigroup and Merrill Lynch oust their CEOs and then scramble around for a replacement, with every step (and stutter step) played out in the press, you have to wonder how rigorously those boards were taking their Succession Planning 101 accountabilities.

Granted, it's not easy for a board to force the succession issue on a CEO. A past DIRECTORS & BOARDS author, one whose name would be instantly recognizable as a preeminent authority on how boards function, told me the story of how he suggested at a board meeting that the CEO begin to formalize a succession plan. The suggestion was not received warmly. In fact, it caused an icy frost to develop between that director and the CEO and made their boardroom interaction strained for some time. But the frost was followed by a thaw. A succession plan eventually was forthcoming.

It seems that some boards still need a lot of inspiration and perspiration to advance succession on the agenda. To that end, DIRECTORS & BOARDS is always on the lookout for experts who can provide guidance.

Joseph Bower's new book on succession, The CEO Within, fills that bill. Bower is a Harvard professor, leadership maven, and public company director, a perspective invaluable to tackling this topic. It was tough to select an excerpt from such a trove of fresh and...