Clearing the Roadblocks - Getting real about leadership and succession planning. As Executive Search Consultants we find there are certain challenges that our clients are faced with, no matter what industries they come from. One of the main themes we come across when undertaking a new search assignment is the subject of succession planning. Even more critical to company survival is the subject of CEO and Leadership Succession. It is not surprising that we touch upon this daily as the subjects of talent acquisition, retention and development naturally feed into each other. There is an increase in turbulence and uncertainty in today’s market, there seems a greater requirement than ever before for strong, stable leadership. There increasingly seems to be a unilateral awareness of this across all levels, not just from the Human Resources team but also across the Board to the lowest ranks of the company. There is a clear anxiety about the line drawn between the company’s future successes and its present leadership contingencies. This new emphasis on the CEO replacement strategy was manifest in 2009 with the US Security and Exchange Commission removing the right for companies to avoid disclosing their CEO succession process to shareholders. The result has been an avalanche in the media of close reporting on the likes of Warren Buffet and his leadership exit strategy from the Berkshire Hathaway which makes headlines every time there is a shareholders meeting. It is surprising therefore that what we have found on our daily tackling of this issue at Logistics Executive that there still seems to be a high level of resistance to the implementation of a succession plan or a leadership exit plan. Perhaps this is due to human nature and the lack of perceived interest in changing the status quo. Perhaps it is due to the overwhelming nature of adding this new task to what is already a highly tasked management function. Whatever the reason, it is still the case that when we ask the question we are met with a lack of information. Our standard practice when we tackle a new assignment is to ask about the succession planning process involved in a new role and more often than not we find that the answer is yes but the outline of this plan is often hazy. The reason for this lack of contingency can be attributed to the many mistakes, obstacles and roadblocks that most companies find themselves navigating when trying to successfully implement a succession plan.

1. CEO EXECUTIVE SERIES! 28 MAY 2012
CLEARING THE
ROADBLOCKS NEWS &
GETTING REAL ABOUT LEADER- EVENTS
SHIP AND SUCCESSION PLANNING
Upcoming Events
As Warren Buffett found out last month at his annual share- 5th Global Logistics and SCM
holder retreat, CEO Leadership succession isn’t just about Summit on 30th May 2012
thinking about the future. Stakeholders and investors now Attended by 250 plus professionals
from 30 plus countries, the summit is
demand detailed plans to cope with future change. More is ex- an intense discussion on strategies for
pected writes Darryl Judd, COO for Logistics Executive supply chain and logistics
Group. management and brings together
many global thought and industry
leaders. This is a must attend summit
by all engaged in supply chain and
logistics industry. Held in Dubai, UAE,
May 30, 2012.
(click here to find out more)
Global Logistics and Cargo
Symposium 2012 - Malaysia
The theme of the symposium
“Economic Transformation,
Leadership success and Integrity” and
it highlights the challenges and
opportunities for supply chain,
stakeholders in the region as well as
showcasing its homegrown best
practices in supply chain and logistics
management. Held in Kuala Lumper,
Malaysia, June 27-28, 2012.
(click here to find out more)
As Executive Search Consultants we find there are certain Logistics Executive
challenges that our clients are faced with, no matter what Global News
industries they come from. One of the main themes we come
across when undertaking a new search assignment is the subject of Logistics Executive’s LINKED IN
succession planning. Even more critical to company survival is Group hits 10,000 members
the subject of CEO and Leadership Succession. It is not Already with a candidate database of
80,000 plus Supply Chain and
surprising that we touch upon this daily as the subjects of talent Logistics professionals globally,
acquisition, retention and development naturally feed into each Logistics Executive’s industry
other. networking group on LINKED IN
There is an increase in turbulence and uncertainty in today’s recorded a key milestone in April by
market, there seems a greater requirement than ever before for becoming one of the few specialist
strong, stable leadership. There increasingly seems to be a groups to exceed 10,000 members.
The Logistics Executive LinkedIn
unilateral awareness of this across all levels, not just from the
Group is quickly becoming the hub for
Human Resources team but also across the Board to the lowest global supply chain and logistics
ranks of the company. There is a clear anxiety about the line experts and is free to join.
drawn between the company’s future successes and its present
leadership contingencies.
© 2012 LRS Group Pty. Ltd. All rights reserved! PAGE 1

2. CEO EXECUTIVE SERIES! 28 MAY 2012
This new and more often than
emphasis on the not we find that the
CEO replacement answer is yes but
strategy was the outline of this
manifest in 2009 plan is often hazy.
with the US Security The reason for this
and Exchange lack of contingency
Commission can be attributed to
removing the right the many mistakes,
for companies to obstacles and
avoid disclosing roadblocks that
their CEO most companies
succession process find themselves
to shareholders. navigating when
The result has been tr ying to
an avalanche in the successfully
media of close implement a
Above: Warren Buffett. Source: Toronto Standard, May 2012- On everyone’s
reporting on the minds is the question of succession. succession plan.
l i ke s o f Wa r r e n Our clients have
B u f f e t a n d h i s “In April, Berkshire CEO Warren Buffett told shareholders that he was di- most commonly
agnosed with stage 1 prostate cancer. Non life-threatening nature of the di-
leadership exit a r t i c u l a te d t h e s e
agnosis notwithstanding, the news led to wild speculations about the com-
strategy from the pany’s fate a&er Buffett’s inevitable passing away. When a shareholder asked road blocks/
Berkshire Hathaway for updates on the succession plan, Buffett replied, “I think we’re going to obstacles with an
which m a ke s come up with a result that you’' be happy with. Though I hope it’s not too emphasis in the
headlines every time soon.” detail of executing
there is a succession plans as:
shareholders
the status quo. Perhaps it is due • Lack of leadership support
meeting.
to the overwhelming nature of – As mentioned above this
It is surprising therefore that adding this new task to what is is not as big an issue as it
what we have found on our daily a l r e a d y a h i g h l y t a s ke d used to be as top managers
tackling of this issue at Logistics management function. Whatever realize the importance of
Executive that there still seems the reason, it is still the case that business continuity. The
to be a high level of resistance to when we ask the question we are challenge here is
t h e i m p l e m e n t a t i o n o f a met with a lack of information. maintaining an ongoing
succession plan or a leadership Our standard practice when we interest and support by the
exit plan. Perhaps this is due to tackle a new assignment is to ask management team. This is
human nature and the lack of about the succession planning achieved through
perceived interest in changing process involved in a new role communicating and
reporting to keep them
engaged and owning the
process.
• Agreement on the criteria
for the talent assessment –
This is a critical step as
providing managers with
talent data that supports
their company and staff
needs makes it easier to
identify and develop talent.
• Lack of reporting - This
area is often considered
quite daunting but can be
simplified by having a good
succession plan as a
foundation. Putting some
© 2012 LRS Group Pty. Ltd. All rights reserved! PAGE 2

3. CEO EXECUTIVE SERIES! 28 MAY 2012
simple metrics Succession plans with confusion.
in place that tie need to be visible if However our aim in Logistics Executive
in with business they are to create asking is to seamlessly www.logisticsexecutive.com
objectives is the credible and respected design the right skill-
ke y t o t h i s . leaders. As a guide for sets and cultural fit in Australia
Integrating succession planning the role we are Sydney
succession the company mission recruiting for, not just Phone: +61 2 8262 9800
planning into statement and for the present need Melbourne
performance business objectives but for the future. It Phone: +61 3 9863 9488
management is need to be clarified. It is also an
Asia
the simplest is critical that the acknowledgement of
Shanghai
approach. current leader must the incumbent leader’s
Phone: +86 21 6427 6697
There are many help the future responsibility to think
Singapore
theories published by successors learn and of their replacement.
lead within the Agreement at all Phone: +65 6818 9745
academia, consultants
and professionals on company. The current levels that a leadership Hong Kong
how to put a leaders must also succession plan is good Phone +852 3125 7654
successful succession super vise the business practice is India
plan and leadership continuing success of paramount to its Phone +91 22 4090 7053
exit plan in place. We the business and success due to
ensure their successor organizations facing Middle East
will not try to navigate United Arab Emirates - Dubai
through these in this understands and is increasing complexity
capable of executing a n d u n ce r t a i n t y i n Phone: +971 4 361 6275
article. Suffice it to say
that succession plans business objectives their operating New Zealand
need to be tailored to and achieving the environments. Wellington
individual company company vision. In In a future that is Phone: +64 4 496 6730
requirements and this sense succession i n c r e a s i n g l y
whilst there are some planning is the unpredictable and
best practice learning tool used by u n ce r t a i n i t i s t h e For a copy of the 2012
guidelines these seem the incumbent to train CEO’s who provide
and direct their Logistics Executive
to be very basic and s u r e t y. T h e y s e e
overshadowed by the successor. opportunity in Global Employment
many contrasting On a basic level volatility and find Report email:
points of view. the succession plan creative ways to darrylj@logisticsexecutive.com
However in terms also safeguards against na vigate problems,
u n l a w f u l or
of best practice there balance the needs of
discrimination. The the company with kimw@logisticsexecutive.com
are two basic
guidelines that need to current leaders avoid social responsibility
be mentioned, as preferential treatment and hold on to
in the succession
Darryl Judd
follows: uncertainty until the
planning stages if they Chief Operating Officer
1. Communication – optimum time to
are seen to use the make a decision. Logistics Executive Group
up and down the With more than 20 years of
line. Leaders within mission statement and It is no wonder
company objectives as that shareholders and executive experience in Aviation,
a business must be Supply Chain and Logistics
not only chosen but his/her guide to executives on the
s e l e c t i n g p o te n t i a l board to ordinar y Transport Industry, Darryl has held
also developed, executive positions within the
mentored, and successors. company employees
As part of our are now showing a airline & aircraft leasing/charter
cultured as well. industry and major logistics
2. Agreed acceptance processes upon taking sharp interest in the
the brief of a new exit plan strategies and organizations.
that the succession
r e c r u i t m e n t talent management of He is regularly called upon to
and leadership exit
assignment at their leaders and why manage key human resources
plan is of critical
Logistics Executive, it is a risk mitigation consulting projects and supporting
importance by the
we a s k o u r c l i e n t s strategy to have a business to drive changes,
whole company and
about their exit strong plan in place for particularly around M&A activity
in particular by the
strategies. This the future. and international executive
incumbent leaders.
question is often met . management.
© 2012 LRS Group Pty. Ltd. All rights reserved! PAGE 3