L-R: Group Chairman, Tony Elumelu, Kennedy Uzoka and Phillips Oduoza during the announcement
6 •
The Lion King
• January - March 2016
CEOs do not last forever, no
matter how good they are.
There comes a day when they
have to say goodbye and
move into retirement or to
new ventures. The number
one priority for the board of
any company is to ensure that
when such a day comes, the
company is prepared with a
successor, who can take over
the mantle of leadership
without missing a bit in
corporate performance.
SUCCESSIONPLANNING
AND THE APPOINTMENT OF A
NEWHELMSMANAT UBA
BY ANTHONY OSAE-BROWN
O
ne company that was recently
criticized for having a poor suc-
cession planning is Microsoft,
one of the most popular corporate
brands in the world. In August 2013,
Microsoft announced that its then
CEO, Steve Ballmer, will be stepping
down within a year. But Microsoft
failed to announce a successor or
give a clear direction on who will suc-
ceed Balmer.
This uncertainty over leadership of one
of the world’s most valuable compa-
nies created anxiety among all stake-
holders including staff, shareholders,
and suppliers. Eventually, almost five
months later, in January of 2014, Satya
Nadella, a longtime employee of
Microsoft was announced as the suc-
cessor CEO to Steve Ballmer.
However, the corporate and invest-
ment world were surprised that a cor-
porate giant like Microsoft did not
have a clear succession plan for its
CEO. Choosing the person to drive a
company’s growth into the future is
one of the most important decisions
any organization makes. Besides set-
ting the strategy and policy direction
for the firm, appointment and firing
of the CEO is the next most impor-
tant decision made by a company’s
board. The outcome of the decision
can make or mar the company.
A good succession plan process is
usually a non-event in the company’s
corporate calendar. The successor
CEO would have been known years
before the announcement is made.
Usually, he/she would have understud-
ied the incumbent CEO and served
in key areas of the organization over
time. The official announcement is
also made well in advance of the
actual succession date to ensure that
stakeholders are not taken unawares
and are ready for the transition from
one CEO to another.
These best succession planning prac-
tices all fell into place when the board
of pan African financial services group,
United Bank for Africa Plc, met on
