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Action Points The CEOs from Avaya, Kaon Interactive, OtterBox, Jupiter Medical Center,
and Wayfair on:
I. During Succession Planning, What Challenges Can

Mind the Gap:

Leaders Face?
Given the ever-evolving business climate, your company
may need much different leadership tomorrow than it
enjoys today. This, of course, begs the question: what
precise qualities will be necessary? Where will you locate

Identifying the Next

them? Among your current staff — assuming they are
interested — or externally? And how will you find the time
to look?

Generation of Company
II. The Bottom Line
Because the quality of your organization’s leadership is
reflected directly in results, your board of directors and
shareholders will be able to continuously assess whether
your company has the right leaders. Is the company grow-

Leadership
ing? Are productivity rates improving? Are employees
staying? How many have been developed into leadership
roles?
III. Must-Have Leadership Characteristics to Drive
Success in the 21st Century
When it comes to effective leadership, the old adage
applies: the only constant is change. There is no one set Kevin J. Kennedy, Ph.D.
of qualities that will best serve your company in the years President and Chief Executive Officer, Avaya
ahead. Rather, you must develop people with the expertise
to run today’s business and the courage and vision to
shed the old and embrace the new as conditions require.
Gavin Finn, Ph.D.
IV. The Golden Rules for Developing the Next President and CEO, Kaon Interactive, Inc.
Generation of Leaders
Generally, leadership development requires three sets
of activities: opportunities for employees to learn on Brian Thomas
their own, natural exposure to the full range of company
activities, and formal education programs. While the mix
Chief Executive Officer, OtterBox
will vary depending on the company’s size and culture,
leaders agree that any program should include on-the-job
experience.
John D. Couris
President and Chief Executive Officer, Jupiter Medical Center
V. Essential Take-Aways
When it comes to identifying the next generation of lead-
ers from within your ranks, assessments need to take Niraj Shah
place both “on and off the field,” i.e., through informal
observations as well as performance reviews. Who per- Chief Executive Officer and Co-founder, Wayfair
forms their job expertly? Who models company values?

Who shows an ability to lead even if not in a position of
power?
Contents
About the Authors. . . . . . . . . . . . . . . . . . . . . . . . . . . p.2
Kevin J. Kennedy, Ph.D. . . . . . . . . . . . . . . . . . . . . . . p.3
Gavin Finn, Ph.D.. . . . . . . . . . . . . . . . . . . . . . . . . . . . p.8
Brian Thomas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p.11
John D. Couris. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p.14
Niraj Shah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p.16
Ideas to Build Upon & Action Points. . . . . . . . . p.18
T
here are all kinds of reasons to be concerned about succession planning
today, and most do not revolve around the mass retirement of baby boom-
ers. Fueled by the relentless evolution of technology and global competition,
the business environment is changing more rapidly than ever before. To tackle
upcoming crises, rebuild organizations, and create new business models, multiple
skill and character sets will be required. This ExecBlueprint discusses how today’s
CEOs can address these upcoming challenges. First, you must discern what type of
leader will be necessary to lead through the next phase, and hire accordingly. You
will need to continually assess your employees: Who shows leadership potential
through their actions, skills, and expressed interests? Nurture these people, not
only through formal development programs but also real-world exposure to dif-
ferent functions and problems. And remember: new circumstances will continue to
arise and confound your process. As such, your leadership development process is
never finished. The need for the right leader at the right time remains constant. n

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About the Authors
K
evin Kennedy, Ph.D., is the president and
chief executive officer of Avaya Inc., a
global provider of next-generation business
collaboration and communications software and
services, providing unified communications, real-
time video collaboration, contact center, network-
ing, and related services to companies of all sizes
around the world.
Dr. Kennedy currently serves President Obama
as a member of the President’s National Security
Telecommunications Advisory Committee. In 1987,
he was a Congressional Fellow to the U.S. House
Gavin Finn, Ph.D.
President and CEO, Kaon Interactive, Inc.
G
avin Finn, Ph.D., is president and chief
executive officer of Kaon Interactive, Inc., a
provider of interactive sales and marketing
solutions for Global 1000 industrial companies. He
is responsible for the company’s strategic, financial,
product, and customer relationship strategies.
He has transformed the company’s busi-
ness model and marketing strategy, and has
led the company’s innovation process, resulting in
the introduction of several award-winning solutions
Brian Thomas
Chief Executive Officer, OtterBox
O
tterBox CEO Brian Thomas is the chief
visionary, positioning the company as an
innovative technology company and a
global leader in the consumer electronics industry.
Prior to joining OtterBox, Mr. Thomas served as
the lead account manager for the Honda Manufac-
turing account at global automotive giant Magna
International. Seeking a way to impact community
John D. Couris
President and Chief Executive Officer, Jupiter Medical Center
J
ohn D. Couris serves as president and chief exec-
utive officer of Jupiter Medical Center (JMC) in
Jupiter, Florida, a not-for-profit 283-bed medical
center consisting of 163 private acute-care hospital
beds and 120 long-term care beds. Comprised of
an ambulatory care division, acute care division,
post-acute care division, a multi-specialty physician
group, and a foundation, Jupiter Medical Center
provides a broad range of services. Specialty con-
centrations include oncology, imaging, orthopedics
and spine, lung and thoracic, women’s health,
and cardiology. Under Couris’ leadership, Jupiter
Medical Center has forged strategic relationships
Niraj Shah
Chief Executive Officer and Co-founder, Wayfair
N
iraj Shah is the CEO and co-founder of
Wayfair, the leading online home goods
retailer. Before Wayfair, Mr. was CEO and
co-founder of Simplify Mobile and Spinners,
and was also an Entrepreneur-in-Residence at
Greylock Partners.
© Books24x7, 2014 About the Authors   ExecBlueprints   2
Kevin J. Kennedy, Ph.D.
President and Chief Executive Officer, Avaya
of Representatives Committee on Science, Space,
and Technology.
He is the author of Devil in the Details,
published in 2012, and a co-author of Going the
Distance: Why Some Companies Dominate and
Others Fail, published in 2003. He has published
more than 30 papers on computational methods,
data networking, and issues of technology manage-
ment. Dr. Kennedy also holds two patents, one for
the “Induced Flow Heat Exchanger” and the other
for “Flexible Security Requirements in an Enterprise
Network.”
that have revolutionized the way that Kaon’s cus-
tomers bring their products to market. Dr. Finn is
also a lecturer at Tufts University, where he teaches
Entrepreneurial Marketing & Sales, and Engineer-
ing Management.
He has a track record of innovation in
entrepreneurial companies in a variety of indus-
tries, including digital marketing, engineering,
and automation. He was president and chief
operating officer of Bluestreak, Inc., an Internet
through mentorship, he also taught at an at-risk
high school in Northern Colorado.
Mr. Thomas joined OtterBox in 2003 and has
held positions including sales representative, direc-
tor of sales and marketing, chief operating officer,
president, in addition to currently serving as CEO.
His leadership abilities, dedication, and strate-
gic vision have been integral to many OtterBox
with Miami Children’s Hospital and Vaccine Gene
Therapy Institute.
Prior to his position at JMC, Mr. Couris served
as chief operating officer/administrator for Morton
Plant North Bay Hospital, part of the BayCare
Health System in Tampa Bay, FL. In his role,
Mr. Couris was responsible for both the strategic
direction and operations of the organization and
overall market, which included inpatient services,
outpatient services, psychiatric care, and physician
strategies. He also served as vice president of ambu-
latory care and president of Morton Plant Mease
Mr. Shah has been included in Fortune maga-
zine’s 40 Under 40, and has won the Ernst and
Young’s Entrepreneur of the Year award. He is also
on the board of MITX and the Cornell University
Council.
Prior to joining the Avaya in December 2008,
Dr. Kennedy was president and CEO at JDS Uni-
phase Corporation for six years, chief operating
officer at Openwave Systems, Inc., for two years,
and served in various executive positions at Cisco
Systems for eight years. Earlier in his career, he spent
17 years with AT&T Bell Laboratories.
☛ Read Kevin’s insights on Page 3
advertising and marketing infrastructure software
company, and president and chief executive officer
of Prescient Technologies, Inc., a software company
that provided data quality solutions for engineering
and manufacturing. Dr. Finn was previously the
senior vice president of Stone & Webster Advanced
Systems Development Services.
☛ Read Gavin’s insights on Page 8
milestones such as entry into the smartphone
accessories and consumer electronics industries, the
company’s international expansion, recent acquisi-
tions, and its rapid growth trajectory. OtterBox is
now a $1 billion company and employs more than
1,000 worldwide.
☛ Read Brian’s insights on Page 11
Health Services, one of the largest ambulatory care
organizations within the state of Florida.
Mr. Couris began his career at Massachu-
setts General Hospital (MGH) in Boston, Mass-
achusetts. While at MGH, he held several positions
within the organization, including human resources,
materials management and radiology, where he
directed operations and research activity and
co-founded an international consulting organization
focused on operations management and technology.
☛ Read John’s insights on Page 14
☛ Read Niraj’s insights on Page 16
Kevin J. Kennedy, Ph.D.
President and Chief Executive Officer, Avaya

Company Transformation transition process upon arrival can

and Succession Planning vary. There is recognition of a cri-
sis, followed by a period of triage.
The purpose of this article is to
The rest of the journey depends
describe the importance and prac-
on the extent of the illness and can
tical advancement of succession
include any number of options,
planning in the somewhat extreme
from hospitalization to acute rehab
situation of a company transfor-
to outpatient therapy, but the end
mation. In today’s markets where
goal is the same: the journey back
competitive forces — new and
to a normal, healthy, and hopefully
old — are many, where alterna-
thriving life.
tive technologies replace ­existing

We have trained our hiring managers to hire for

the future state rather than follow the traditional,
old-school thinking of “filling the open requisi-
tion” or hiring a candidate whose skills map
most closely to the requirements of the current
open position.
t­ echnologies with greater fre-
quency, and where corporate con-
solidations in the industrialized
market require instant improve-
ments for efficiency, transforma-
tional change is not uncommon.
This transformational change often
begins with a sense of crisis and a
call for intervention.
The end goal of such an inter-
vention, of course, is a surge of
business model health and growth.
In this article, we assert that leader-
ship- and skills-based succession is
a constant priority for the journey.
Succession: An Imperative
for Driving Transformation
Have you ever experienced or
known someone who found them-
selves in the emergency room due
to a physical injury or illness and
needed immediate attention? The
Kevin J. Kennedy, Ph.D.
President and Chief Executive Officer
Avaya
It is safe to say that the skills
required from the doctors and
nurses as the patient moves from
one stage to the next will vary
greatly. It goes without saying that
an emergency room doctor has a
much different skill set than a spe-
cialist or general practitioner. In
fact, the triage at the beginning
of the journey involves the work of
stabilizing the patient. Much later
in the process, doctors are focused
on identifying the right pace of
recovery and the appropriate pro-
cedures to increase strength and
avoid a subsequent step backward.
Using this analogy in the con-
text of Avaya, the same process has
prevailed as we have progressed
through our own transformation.
As we examine and identify what
was required for legacy leaders,
what is required for current lead-
ers, and what will be required for
Kevin J. Kennedy, Ph.D.
President and Chief Executive Officer
Avaya
“I expect our leadership team to ana-
lyze their leadership qualities and
those of their teams; I believe this is
the cornerstone that enables proper
succession planning.”
• With company since 2008
• Member, President Obama’s National
Security Telecommunications Advi-
sory Committee
• Member, Board of Directors. of
Avaya, KLA-Tencor Corporation,
Digital Realty Trust, L.P., and Canary
Foundation
• B.S., Engineering, Lehigh University
• M.S., Ph.D., Engineering, Rutgers
University
Mr. Kennedy can be e-mailed at
kevin.kennedy@execblueprints.com
leaders who will follow in their
footsteps, the stakes are high.
Avaya’s Phases of
Transformation
We are in the midst of a signifi-
cant transformation, reinventing
our products, business model, and
segmented customer base. It is not
for the faint of heart or the quick-
change artist. It demands courage
and risk taking.

© Books24x7, 2014 Kevin J. Kennedy, Ph.D.   ExecBlueprints   3

Kevin J. Kennedy, Ph.D.
President and Chief Executive Officer, Avaya (continued)
As companies face dramatic
change, they need to invest in a
certain leadership culture and suc-
cession philosophy that aligns to
the unfolding phases. And, much
like the emergency room analogy,
different leadership cultures serve
different purposes, especially as a
company transitions through its
phases. A hierarchy of culture and
leadership exists and as it advances
through its transformation, it must
be in alignment with the estab-
lished vision and strategy. With-
out alignment and awareness of
what is needed, gaps will appear
in the individual leadership skill set
and in the organization’s collective
leadership capability. This can be
detrimental to the metamorphosis
that must occur. To put this in the
context of Avaya’s business, let me define a new destination and lead support the foundation that has
share our documented phases that for what is in front of them while been established. The leaders of
we have gone through and are cur- simultaneously creating a com- the future must drive initiatives
rently experiencing. pelling future. These leaders must of improvement, restructuring, and
Crisis: Phase One — A com- build a call to action for change and reinvention. They are, in a word,
pany arrives at this phase either significant improvement. Unfortu- innovating for the future. They
because they are internally moti- nately, they must not be held hos- must inspect their own organiza-
vated to change or external cir- tage to legacy beliefs. If they persist tion and ask themselves, “Does
cumstances have forced them into a to stay in the status quo, old way my organization have the right
serious dilemma. We faced both. At of thinking, old processes, and/or skill sets to advance forward?”
this phase, introspection is critical archaic systems, they will not be They must possess a global mind-
to recognize that change is required equipped to lead in this phase; a set and move from working up and
and leadership behaviors must successful transition to the next down their function to collaborat-
align to a new business model. In phase is mandatory. They must ing cross-functionally and across
this vein, leadership must be capa- possess the capability to disman- the global enterprise.
ble of difficult decision-making and tle the past and build the systems Developing current talent while
smart execution. In the simplest for the future. Unfortunately, this seeking new talent for succession is
terms, transformation requires a ambidextrous quality is rare in critical in phase three. Leaders in
company to reduce past complexity leaders. Leaders tend to foment this phase do not have the luxury
for which the market ascribes little and be recognized in a particu- of failing. It is the rare leader who
or no value, and reinvent products, lar growth area but few are ever has the finesse to continue to drive
services, and processes which cus- tested in a period where they grow change for the future while keeping
tomers need and will confer value. while simultaneously letting go their eye on the multitude of short-
Hence, making choices is an impor- of the past. Leaders in this phase and long-term goals. When I con-
tant skill for the leadership team. must establish clear initiatives and duct my own talent search during
prioritize. this phase, I have found that inter-
Leadership: Phase Two —
Leadership starts to drive change. Improvement: Phase Three — nal candidates now tend to rise to
Minimally, these leaders must Operational excellence must now the top after having been largely

© Books24x7, 2014 Kevin J. Kennedy, Ph.D.   ExecBlueprints   4

Kevin J. Kennedy, Ph.D.
President and Chief Executive Officer, Avaya (continued)
suppressed during the old regimes.
However, as I stated before, it is Expert Advice
the extraordinary leader who finds Human Resources: A Strategic Business Partner  In addition to our list of
long-term success in this phase characteristics, we have created various tools so that emerging leaders will under-
when leaders are asked to drive stand what is required to lead a dynamic organization. Our Human Resources
many initiatives and relentlessly organization is a critical and strategic partner that helps build tools to support
inspect for progress. When prog- the company’s long-term vision and strategy. Below is an example of a framework
ress is not made, they must inter- that managers and above use as they identify their pipeline of future leaders. It
vene and remove the obstructing illustrates the skills and competencies we need to build in people.
assumptions or people.
Phase three is a difficult phase
of “managing work.” Scrutinizing
and improving details is an enor-
mous challenge when you’re also
sorting out and upgrading tal-
ent. On the positive side, generally
some of the new initiatives begin
to show progress; important met-
rics begin to trend favorably. Fur-
ther, the organization begins to
take notice that new methods and
models can deliver benefit. While
far from best-in-class, there is an
emerging sense of confidence that
a deliberate and new set of exe-
cution models will transform the
company.
Metrics: Phase Four — The chart below reinforces the behaviors and competencies on the Success
Numbers do not lie: evidence Profiles shown above. In other words it is the “how.” I challenge my leadership
dictates that progress is being team to find two potential successors who would be ready to step into leader-
achieved. That is the beauty of ship roles within 24 months to help the organization in case of unforeseen events.
measuring everything that moves. This will allow us to build deep bench strength as we continue to shift and change
The new business model begins with the demands of our customers, employees, and partners.
to show promise and year-over-
year improvement. Leaders within
this phase continue to seek new
talent to assist in measuring the
new business model, inspecting
the existing systems, and auto-
mating and improving cycle times.
Special attention is given to devel-
oping organizational infrastruc-
tures, evaluating human capital,
and making the necessary adjust-
ments. The ability to continuously
anticipate and adapt to critical and
strategic shifts becomes an increas-
ingly important driver for future
competitive advantage. While these

© Books24x7, 2014 Kevin J. Kennedy, Ph.D.   ExecBlueprints   5

Kevin J. Kennedy, Ph.D.
President and Chief Executive Officer, Avaya (continued)
responsibilities seem obvious, it
becomes crucial to establish the
patterns of recruiting and succes-
sion planning that create repeat-
able processes.
During this phase, numerous
functions will begin to deliver best-
in-class metrics. Additionally, a
number of cross-functional met-
rics will begin to trend in the
top 25 percent. Examples of such
metrics might be our customer
Net Promoter Score (NPS), quality
measures, revenue per employee,
and earnings before interest, taxes,
depreciation, and amortization
(EBITDA) percentage. However,
it is likely that challenges will
continue to exist, such as sales-
force productivity or year-over-
year growth.
Benchmark: Phase Five — Now
that the business model has been
formed and achieved stability, sus-
tainable growth is being enjoyed.
However, the demands of expan-
sion will require continued replen-
ishment of talent which will in
turn drive diversified leadership,
increased customer focus, and the
belief that developing both supe-
rior individual leader capacity and
organizational leadership capabil-
ity will remain critical compo-
nents to a successful outcome. In
phases four and five, the leaders
find themselves focused on mea-
surable improvement and growth.
Their time is less focused on dis-
mantling and reshaping and more
focused on optimization for best-
in-class external measures. In
essence, as the leadership team
transitions to phases four and five,
they are focused on managing the
business, versus managing the work.
This transition is about maximizing
health, not stabilization or recov-
ery. Leaders who work well across
© Books24x7, 2014 Kevin J. Kennedy, Ph.D.   ExecBlueprints   6
functions and think systematically
are highly valued.
The Methods to Enable the
Transformation
As we continue upward in our jour-
ney, it is logical that certain tech-
niques and methods will support
our successful transition from one
phase to the next. To refer back
to the hospital analogy, phase one
represents the emergency room and
phase two represents the transi-
tion from emergency room to hos-
pitalization. The leadership skills
required in phase one differ from
those needed for phase two. The
removal of legacy leaders during
these two phases needs to be sur-
gical, efficient, and swift.
Phase three represents acute
rehab while phase four represents
the move to outpatient. In phases
three and four, leaders are required
to find successors that move from
managing the work to managing
the business. As stated previously,
they must adopt the global mind-
set and work cross-functionally. A
world-class leadership team is in
place and innovating with an eye
towards the future.
Phase five represents the tran-
sition to a thriving business or
(to again evoke the medical anal-
ogy) a return to health and vital-
ity. Throughout all five phases,
numerous systems evaluate the cur-
rent and future talent pool. Exam-
ples of this include intense global
training to determine that we have
the right set of leaders to execute
against the strategy and move into
our aspirational vision. Interna-
tional ­rotational assignments and
nine box reviews have become
part of our DNA. And, early in
their career, college recruits are
given exposure opportunities such
as shadowing and mentoring to
prime them as they grow in their
careers.
Our Pirate’s Code +
Successful Hiring =
Better Business Results
Front and center in all of our hiring
decisions as well as our succession
planning is a list of eight leader-
ship traits that we have coined our
Pirate’s Code. Hiring the right tal-
ent can be a daunting task and if
not done properly, can have seismic
consequences. During our transfor-
mation journey, we learned what
works best for us and clearly what
does not.
As we have moved from legacy
leaders who could only manage the
past work to those who can drive
the business as a future maker, we
have made our share of hiring mis-
takes. But we have made significant
strides toward building a world-
class leadership team over the last
two to three years. Because of this,
we are cognizant and sensitive to
the notion that when a manager
seeks to hire externally or identify
an internal candidate for a new or
more challenging role, certain attri-
butes must be present. According
to a recent report from Glassdoor.
com, of the most rigorous hiring
companies, Avaya ranked num-
ber 15 out of the top 25. In addi-
tion, we tied with Rolls-Royce in
the number-one spot for creating
a positive interview experience for
candidates.
To garner this reputation, we
looked inward and identified a set
of leadership attributes so that we
could avoid the pitfalls of hiring
internal and external talent that
fell short of our expectations. The
Kevin J. Kennedy, Ph.D.
President and Chief Executive Officer, Avaya (continued)
eight leadership characteristics of
successful leaders (which are only
partially present in unsuccessful
leaders) are as follows:
• Extreme Domain Experts
• High Courage/Low Ego
• Relentless Inspection
• Marathon Runner
• Board Accountability
• Extreme Ability to Hire
• Bias for Outcomes/Action
• Teamwork + Attitude
We have incorporated the Pirate’s
Code into our executive evaluation
and assessment processes. Candi-
dates for senior management roles
are assessed using a number of
tools and techniques, yielding data
that map back to specific Pirate’s
Code dimensions. The resulting
scorecard — and supporting data
— is used for decision making
and, for those candidates who are
hired, to accelerate on-boarding.
In addition, we have trained our
hiring managers to hire for the
future state rather than follow
the traditional, old-school thinking
© Books24x7, 2014 Kevin J. Kennedy, Ph.D.   ExecBlueprints   7
of “filling the open requisition” or
hiring a candidate whose skills map
most closely to the requirements of
the current open position. When
looking at our transformation jour-
ney and the five phases, we know
we need to hone in on candidates
for the future, which is especially
critical for navigating the company
successfully through phases three
through five.
Strategies for Surviving the
Crisis and Beyond
One thing I have learned is this:
transformation is not a short-term
process; it can take two to three or
upwards of five years. However,
it certainly does not take decades.
And, without processes and sys-
tems in place, it can take on a life
of its own and spiral in the wrong
direction. Much like how snakes
shed their skin and start anew, we
have done our own share of molt-
ing within Avaya. And, through this
process, one thing is clear to me: a
crisis, after everything is said and
done, is a terrible thing to squander.
Ask any change agent; the lessons
learned are priceless. The ability to
shift from insight to action could
be the difference between winning
and losing. Company transforma-
tion requires precise and focused
leadership transformation and suc-
cession planning. When done cor-
rectly, it can require courage to
properly inspect the parts that may
not be working. The leadership
teams know that I would never ask
them to do something I would not
do myself. I, too, go through my
own introspection and ask myself
tough questions on a daily basis
to ensure I am equipped to be of
service to our board of directors,
our employees, customers, part-
ners, and stakeholders.
Transformational journeys
require courage, specifically the
courage to change. As a leader-
ship team, we conduct a semi-
annual 360 feedback. The point is
to ensure alignment and a process
for active listening. As Winston
Churchill wrote, “Courage is what
it takes to stand up and speak.
Courage is also what it takes to sit
down and listen.” We also recog-
nize that building an extraordinary
bench of leaders for Avaya’s future
will be recognized by our custom-
ers as our journey continues. This is
our obligation and commitment. n
Gavin Finn, Ph.D.
President and CEO, Kaon Interactive, Inc.

Current Age Range of many years. Because we are a rel-

Leadership and Employees atively small company, our rates
of retirement are also low. In our
Our senior executives range in age
industry, because there are high
from mid-30s to mid-50s. In the
percentages of younger members
technology arena this is reason-
of the workforce, retirement rates
ably typical, although there are a
tend to be generally lower than for
significant number of other com-
most industries.
panies with senior executives in

Rather than being subjected to a top-down man-

agement hierarchy, individuals are empowered
to select tools, determine approaches, and experi-
ment with new ideas to solve problems.
younger age groups as well. Our
executive management team has
trended more to the younger age
groups over the last several years,
primarily because of the availabil-
ity of talented professionals in that
segment of the population with
experience in advanced interactive
technologies.
Our management ranks include
professionals ranging in age from
their late-20s through to mid-50s.
In every department (including the
management teams) from all func-
tional areas in the company we see
a broad spectrum of experience lev-
els and ages. We have not seen a
real shift or trend in this age/demo-
graphic for our management team
over the last several years.
Our attrition rates have been
relatively low. Typically we see
employee turnover of less than 10
percent on an annual basis, and
we do not anticipate any changes
over the next one to three years.
This low attrition rate also holds
true for our senior executives who
tend to stay with our company for
Gavin Finn, Ph.D.
President and CEO
Kaon Interactive, Inc.
Succession Planning
Strategies
We are constantly working together,
ensuring that all members of the
management team have frequent
exposure to the full range of oper-
ations, functions, and activities
within the company as a whole.
We hold collaborative manage-
ment planning sessions at regular
intervals where organizational roles
and boundaries are less important.
Because of the organic nature of
growth in our company, individual
managers have the opportunity to
express interest in different oppor-
tunities for advancement and, in
addition to senior executives, play
a role in organizational develop-
ment. As such, the senior executive
team collectively reviews a variety
of employees for their potential for
advancement with the leaders in
each functional area and makes the
final decisions about management
appointments to specific roles.
Candidates for advancement are
identified both for their skills and
capabilities within their focus or
Gavin Finn, Ph.D.
President and CEO
Kaon Interactive, Inc.
“From our creative services teams, to
our technology groups and marketing,
we have a culture of creating manage-
ment opportunities for people with the
right qualifications, motivation, profes-
sionalism, and values regardless of
their age.”
• Responsible for strategic, financial,
product, and customer relationship
strategies
• Previously president and CEO,
Bluestreak, Inc.
• B.S., Civil Engineering, Oklahoma
State University
• M.S., Structural Engineering; Ph.D.,
Computer-Aided-Engineering, Mas-
sachusetts Institute of Technology
Mr. Finn can be e-mailed at
gavin.finn@execblueprints.com
specialty area, as well as for how
they model the values, culture, and
business philosophy of the com-
pany as a whole. Specific individu-
als are identified both on the basis
of their demonstrated interest in
advancement to management roles
as well as for their potential that
executives recognize, even if they
have not expressed such a desire
or interest.
For such candidates, knowledge
of the company is important. Why

© Books24x7, 2014 Gavin Finn, Ph.D.   ExecBlueprints   8

Gavin Finn, Ph.D.
President and CEO, Kaon Interactive, Inc. (continued)
is our company different from
others? What value do we bring
to the market and to specific cus-
tomers? What are our core com-
petencies? Knowledge of how the
company operates, what the pro-
cesses and capabilities of the var-
ious departments may be, and
how the company can address cus-
tomer challenges are all key aspects
of company information that any
manager must master.
It is also important that job per-
formance in current and past roles
be exemplary, as a precursor to any
advancement. By demonstrating
excellence in core functional com-
petencies, candidates for advance-
ment illustrate the importance we
place on our company’s focus on
excellence in execution.
While demonstrated leadership
(i.e., past experience in leader-
ship at our company) is desirable, it
is not always a key determinant for
Expert Advice
In our company, decisions regarding whether to promote from within versus hir-
ing an external candidate is context-specific. We look at the requirements of the
management role; both in terms of current needs and how we expect those needs
will evolve over time. Generally, if the role is expected to require a growth-oriented
leader with experience in building the organization (as opposed to running the
current team) we tend to consider external candidates. Based on this framework,
any internal candidates are evaluated for potential promotion, but if none meets
the current/future expectations, we bring in seasoned managers from external
organizations.
candidates’ advancement because in candidates for advancement
our management team is commit- because our relatively small orga-
ted to mentoring, nurturing, tutor- nization requires that every team
ing, and coaching team members. member have a high degree of com-
This focus on helping employees petency in all aspects of their job
learn to be managers expresses our functions.
management team’s professional
development mindset and instills
a culture of consistent manage- Challenges in Developing
ment strategies and values in our the Next Generation of
company. Leadership
We do place a heavy empha- With respect to organizational
sis on knowledge and skill sets and leadership development, the

What Are Essential Attributes for Advancement at Kaon?

Knowledge of the company: Exemplary job performance: Demonstrated leadership or

• How does the company • Demonstrated excellence in interest in being mentored
operate? core functional competencies
• What are core
competencies?
• What are the processes and
capabilities of various
departments?
• Why is the company different
from others?
• What value does it bring to
the market and to specific
customers?
• How does the company
address customer
challenges?

© Books24x7, 2014 Gavin Finn, Ph.D.   ExecBlueprints   9

Gavin Finn, Ph.D.
President and CEO, Kaon Interactive, Inc. (continued)
greatest challenge a small and grow-
ing organization faces is to allocate
sufficient time and resources to
these important tasks. We feel this
challenge acutely, since our man-
agement team, and the employ-
ees in general, are constantly
engaged in delivering products and
solutions to customers, and with
a lean management team, time
and attention to ensuring customer
success is at a premium. These
challenges are universal across our
industry, and companies in
our market all face a similar set
of circumstances. Even if manage-
ment were able to allocate a per-
centage of its time to leadership
development (which happens spo-
radically, at best) the ability for
candidates within the organiza-
tion to devote time and energy to
tasks unrelated to their functional
roles is extremely limited. The drive
to deliver financial performance
that meets or exceeds expectations
requires that hiring is based on a
short-term horizon of visibility, so
that human resources always seem
to be stretched to capacity, leaving
almost no room for dedicated man-
agement training.
Consequently, leadership devel-
opment happens “on-the-fly” dur-
ing the course of operating the
business rather than as a separate
activity, as would be the case in
large organizations. The role of the
chief executive officer in this situ-
ation is to provide personal and
organizational support to mentor-
ing, training, and assisting emerg-
ing leaders as they develop the
skills and judgments they will need
to take on new leadership roles.
Living in the moment and learning
© Books24x7, 2014 Gavin Finn, Ph.D.   ExecBlueprints   10
to lead while immersed in the pro-
cess of operating within the orga-
nization is both a challenge and
an opportunity. True, the time
demands placed on these emerg-
ing leaders (and their mentors)
can be trying, but the rewards of
developing an understanding of
how their roles will be evolving in
a practical and real-world setting
(as opposed to a more theoretical
learning environment) offsets any
of the difficulties.
Anticipated Organizational
Changes
As our culture evolves, so must our
management philosophy and
our leadership approach. Newer
generations of employees have dif-
ferent expectations of the work-
place and their roles in our
organization. As such, the orga-
nization needs to adapt to a more
mobile, flexible workforce, whose
style of contributing and leading
represents a different approach
from generations past.
As new generations of leaders
move into their roles, the organi-
zation reflects their individual and
generational values. Anticipating
these changes and evolving the
way that people are measured,
roles and responsibilities are
defined, and work expectations
are established must be initiated in
advance. In our organization, for
example, individual autonomy to
determine how tasks are performed
has been increasing steadily. Rather
than being subjected to a top-
down management hierarchy, indi-
viduals are empowered to select
tools, determine approaches, and
experiment with new ideas to solve
problems. This increasing auton-
omy, which has naturally resulted
from the entry of younger manag-
ers and leaders, reflects the broader
cultural dynamics and departs from
a more traditional management
philosophy to allow for different
ways to achieve results. By phas-
ing in changes, the company can
move systematically toward a dif-
ferent style, rather than switching
suddenly as new leadership brings
in their approach.
While work–life balance has
always been an issue for profession-
als, the new generation of employ-
ees and leaders has blurred lines
that were previously fairly bright.
On the positive side, employees
have more flexibility, more mobil-
ity, and more individuality in
how they do their work, but con-
versely, the company expects a
greater degree of connectedness
and availability to compensate for
this personal flexibility.
These changes represent a great
opportunity for the company to
continuously engage in cultural
adaptation and progress. Rather
than establishing a firm under-
standing of how things are (and
will be forever) these leadership
changes reinforce the notion that
cultural shifts are a natural compo-
nent of how organizations improve
over time. Being transparent about
what kinds of flexibility the organi-
zation anticipates allows for a great
deal of inclusion across the entire
team, encouraging every voice to
be heard regarding changes and
innovations. n
Brian Thomas
Chief Executive Officer, OtterBox

Current Age Range of We want leaders who

Employees are not threatened
Most of our C-level leaders are in
their 50s; at 41, I am the exception.
by talent, but seek to
This age range is typical of our develop it.
entire management team. Most of Brian Thomas
our C-level leaders have been with Chief Executive Officer
the company for several years. It is OtterBox
a small group, so tracking changes
over time is hard but in general, those processes and systems largely
there has not been a noticeable in place, we are looking more for
change at this level of management. people to run those systems: the
Our middle management team energetic, passionate innovators.
ranges from mid-30s to upper 50s Within the next few years I would
Brian Thomas
and is slightly older, on average, guess that the average age of an
Chief Executive Officer
than the general OtterBox popu- OtterBox employee (or “Otter” as OtterBox
lation. Overall, the average age of we call them) will be a bit younger
OtterBox employees has increased than it is today. “OtterBox core values are integral to
our business success and to profes-
during the last few years. This is sional success. We hire to the values,
partially the result of long-term Succession Planning and we measure employee perfor-
employees aging, but can largely mance against them.”
be attributed to our need to bring
Strategies
• With company since 2003
in experienced individuals for spe- While the last few years of extreme
• $1 billion company with more than
cialized roles. As a rapidly growing rapid growth have made it nec- 1,000 global employees
and increasingly complex company, essary to bring in seasoned pro- • Undergraduate degree, Industrial
OtterBox needed to supplement fessionals for mission-critical and Marketing and Manufacturing Engi-
its historically young workforce specialized roles, we recognize that neering Technology, Western Michi-
with industry veterans. As we con- there is a huge benefit to devel- gan University
tinued to focus resources on our oping our next leaders internally. • Secondary education certificate, Biol-
First, they already know the com- ogy, Colorado State University
international presence, experience
in global expansion and opera- pany and how it works, and there Mr. Thomas can be e-mailed at
is a pretty large learning curve at a brian.thomas@execblueprints.com
tions became more important. We
needed people who had experi- fast-paced, systems-driven organi-
ence with and knowledge of the zation like ours. Additionally, they We are always on the lookout
systems and processes that would are already aligned with the com- for natural leaders, and have sev-
allow the company to continue pany’s core values. Lastly, there are eral programs that help us iden-
its steep growth trajectory with- no talent gaps left during the candi- tify potential leaders, mostly built
out negatively impacting our cus- date search process, which can be around our set of core values.
tomers or consumers. Now, with extremely painful. We look for employees who take
the lead despite the fact that they
do not necessarily have position
Expert Advice power. True leadership is hard to
come by, so when we see it we seek
Benchmarks for Evaluating Company’s Leaderships Development Strate-
to develop it further.
gies  For the last three years, OtterBox has participated in the annual Great Place
to Work survey process. This allows us to see how we measure up in areas such as To identify the future leaders and
credibility, respect, fairness, pride, and camaraderie. This allows us to benchmark critical employees, every manager,
our career development practices against those of other top employers as well director, and executive at OtterBox
as against ourselves, year-over-year. We can then identify areas for improvement. participates in a people-planning

© Books24x7, 2014 Brian Thomas   ExecBlueprints   11

Brian Thomas
Chief Executive Officer, OtterBox (continued)
What Are the Benefits to Developing Leaders Internally?
1. They already know
the company and how it
works.
process twice per year. During
this process, the leaders must iden-
tify an emergency designee as well
as a potential successor. We employ
a multi-tool strategy to assist with
this process and are continuously
adding programs to ensure that
we are ahead of the curve. We use
a six-month performance review
to assess every employee on their
alignment with core values and key
performance indicators, which will
often help managers identify their
talented team members. We use
the nine-block succession planning
process to identify future leaders.
These leaders are then tapped for
formalized development training.
Once a leader is identified
through the nine-block exercise, he
or she is groomed for advancement.
We currently have a leadership
academy in place. Enhancements
are being made to this program to
include a director-level “masters”
tract focused on thought leadership
and a management tract to prepare
Otters with the key fundamental
skills for management. These pro-
grams are relatively new but are
already seeing success. The promo-
tion rate among top performers as
identified by the review and nine-
block exercises is high.
© Books24x7, 2014 Brian Thomas   ExecBlueprints   12
2. They are already
aligned with the
company’s core values.
Challenges Faced
in Developing Next
Generation of Leadership
The tools we have recently put into
place provided a good basis for a
full in-house leadership develop-
ment program but, as with any
new program, there is an element
of trial and error.
We are always adapting our
criteria for leadership positions
because our needs are always
changing. It is a constant process
and not one that should ever be
“finished.” What is constant is the
need for good leaders. People who
are truly good at leading are hard
to find. Many people think they are
leaders, but in truth they are man-
agers or even players. We need peo-
ple who do not drive or push their
team. Rather, we want someone
who will get out in front of a team
and inspire them to follow. We
want leaders who are not threat-
ened by talent, but seek to develop
it. The programs will continue to
evolve as we learn what works for
our employees and organization.
One of our key learnings is
that not every employee invited to
these in-depth leadership-training
programs is going to want to
3. Their advancement
will not result in
painful talent gaps.
participate. It is a big undertaking
that must be balanced with all of
their existing roles and responsibil-
ities. We do not have the luxury of
taking our key team members “off-
line” for the ongoing training.
Best Practices for
Communicating Succession
Planning Concerns and
Strategies
As with many of our programs,
policies, and strategies, succes-
sion planning is an open book at
OtterBox. We want all employees
to understand the opportunities
available to them and to under-
stand how they can advance their
careers, if they so choose. An online
personal portal houses not only
all performance reviews but also
the nine-block succession planning
exercises. This gives employees a
candid look at where they stand in
the organization currently.
Criteria for Selecting Key
Executives for International
Sites
OtterBox began its global expan-
sion in 2011 with an office in
Brian Thomas
Chief Executive Officer, OtterBox (continued)
Cork, Ireland. We had previously
sold internationally through dis-
tributor partnerships but decided
that to truly serve new markets we
needed a physical and cultural pres-
ence there. Cork serves as our sales
and marketing base for the EMEA
(Europe, Middle East, and Africa)
market. We have a similar office in
Hong Kong to handle the APAC
(Asia Pacific) region.
In both instances, we sent a core
group of leaders to the region. We
needed them to set up the office
and bring the OtterBox culture to
the new region. Once in-country,
this group of expat leaders was
asked to build their team with peo-
ple who not only represented the
cultural mix of the region being
targeted, but also embodied the
OtterBox culture. Today, many of
the Otters that were tasked with
blazing the trail for us abroad have
returned stateside and leaders who
are native to the regions now run
their former offices.
Both the core group of expats
and the current “local” leader-
ship for these offices must possess
a wide breadth and depth of talent
because these offices truly are run
as start-ups. They must be able to
understand and manage the com-
plexities of working with many
currencies, a myriad of languages,
and countless variations on taxes,
duties, tariffs, and employment
law. n

© Books24x7, 2014 Brian Thomas   ExecBlueprints   13

John D. Couris
President and Chief Executive Officer, Jupiter Medical Center
Organization’s Age Ranges
I became the president and CEO at
the age of 43. The ages of our exec-
utive team range from the mid-30s
to late-50s. This age range is fairly
typical for our industry, though we
may skew a bit younger, and ages
are spread fairly evenly through-
out the organization. The current
average age for a management-
level ­position is 33. We have a high
retention rate, with only 5 percent
of the staff expected to leave over
the next few years.
Our organization believes that everyone has that
potential to become a leader, based on certain
qualities.
Criteria and Opportunities
for Advancement
For individuals who desire to
move further up in the company,
we use several different indica-
tors to decide whom to groom for
advancement. These include team
member interviews, customer sur-
veys, and results of reviews. We
offer coaching to identify strengths
and weaknesses, and maintain an
electronic filing system. Knowl-
edge of the company, performance
in their present position, and dem-
onstrated leadership capability all
play a role in guiding our decision
to move any given employee up in
the company.
We assess our current and
future needs based on our strate-
gic plan, goals, and objectives and
match these to the capabilities of
our existing workforce. We have
a plan to manage the gaps that
© Books24x7, 2014 John D. Couris   ExecBlueprints   14
may arise when individuals in key
positions retire or are promoted,
based on timing and need of the
organization.
Leadership Development
Strategies
Jupiter Medical Center’s new Lead-
ership Institute was launched with
the purpose of providing educa-
tion and enhancing leadership skills
to address front line and depart-
mental leadership weaknesses.
John D. Couris
President and Chief Executive Officer
Jupiter Medical Center
This ­program was designed to
help support our leaders through
internal education and aims to
advance team members identi-
fied as having high potential for
succession-planning purposes. Our
organization believes that every-
one has that potential to become
a leader, based on certain quali-
ties. We look for those qualities in
employees, and this is what moves
us forward as an organization.
Our best practice for commu-
nicating succession-planning con-
cerns and strategies is to reduce
apprehension and fears among staff
and influence them to support
and participate in our succession-
planning program. We communi-
cate the goals, ensure the definition
of succession planning is under-
stood, and explain the need for
succession planning and how it
will be implemented within the
organization.
John D. Couris
President and Chief Executive Officer
Jupiter Medical Center
“We strive to be the employer of
choice, and recognize the importance
of our team and their valuable insight.”
• 283-bed multi-divisional medical
center
• Previously COO/administrator, Mor-
ton Plant North Bay Hospital (Tampa
Bay, FL)
• Undergraduate degree, Boston
University
• M.S., Management, Lesley University
Mr. Couris can be e-mailed at
john.couris@execblueprints.com
Also, members of our senior
leadership facilitate a newly revised
Team Member Orientation that
takes new team members on “The
Journey” — a special day that
prepares them to navigate new
roads to experience and under-
stand JMC’s culture and its values.
In addition, we introduced a new
Health and Wellness Program for
2014 to help our team members
carry out good health practices.
Engaging Employee
Teamwork
Our team members routinely dem-
onstrate the value of teamwork
John D. Couris
President and Chief Executive Officer, Jupiter Medical Center (continued)
as they perform as a well-oiled
machine together, creating a seam-
less and positive experience for
patients and their families. Each
team member contributes intrin-
sic value to the outcomes of our
patients, and it is their dedica-
tion and commitment to quality
that ensures JMC patients receive
the highest world-class care they
expect and deserve.
Quarterly town hall meetings
provide team members an oppor-
tunity to participate in active dis-
cussions with me, and allow them
to be fully engaged in understand-
ing what’s going on within the
organization and how they can
contribute.
Return on Investment for
Succession Planning
The best way to measure the ROI
for succession planning is through
© Books24x7, 2014 John D. Couris   ExecBlueprints   15
Expert Advice
We continuously re-evaluate our organizational structure and how we recruit and
retain talent. We build cultural awareness and design leadership programs that
develop cultural diversity, flexibility, and people skills. In 2013, Jupiter Medical Cen-
ter was awarded the prestigious ATHENA Award in Business by the Chamber of
Commerce of the Palm Beaches. JMC was recognized for having a long-standing
history of promoting and supporting the advancement of women in non-traditional
roles along with supporting advanced education opportunities through the tuition
reimbursement program.
retention. Are we keeping people? chief operating officer/chief nurs-
Are we developing them? If they ing officer. Our organization’s exec-
are leaving, why? What can we do utive team encompasses the perfect
to stop them from leaving? combination of intelligence, busi-
We are doing well in finding ness experience, and financial acu-
the right talent and moving them men, while driving a social culture
up through the organization. For amongst their staff where happi-
example, our current vice presi- ness and camaraderie are para-
dent for strategy and marketing mount. Our organization is driven
started as a marketing assistant. on our strong culture that we are a
team and together care for people’s
Our chief ambulatory officer came
to the organization as a direc- health and wellness. n
tor of radiology. I have a chief
nursing officer who now is the
Niraj Shah
Chief Executive Officer and Co-founder, Wayfair

Company Leadership For example, we have formal men-

Background toring programs for new hires, a
program for identified future stars,
The majority of our senior exec-
etc. However, I find organic devel-
utives range in age from 30 to
opment to be the most successful.
55, which is typical within our
We also have a variety of events
industry. As the development of
and programs that are particu-
the Internet is a fairly recent (last
larly aimed at leadership develop-
15 years) phenomenon, there are
ment and helping the senior-level
many younger executives in Inter-
employees get to know lower
net companies. Each department in
level employees and assist them in
our company has a similar average
finding a suitable mentor. We then
age and demographic breakdown

We strongly prefer to promote from within when Niraj Shah

possible since we then benefit from someone who Chief Executive Officer and Co-founder
Wayfair
knows the company, our systems, our people, our
culture, and can use that knowledge to help build “We currently have more opportuni-
ties than we can handle. Our theory
the company for the future. is that we can continue to grow quite
quickly, and the more strong leaders
Niraj Shah
that we can help develop, the greater
Chief Executive Officer and Co-founder the growth will be.”
Wayfair • Previously CEO and co-founder,
Simplify Mobile and Spinners
connect those people in a casual • Featured in Fortune’s 40 Under 40
consisting of young lower-level em- • Recipient, Ernst and Young’s Entre-
way through our networking ven-
ployees balanced by our senior preneur of the Year award
ues or evening events at which we
employees who tend to be some- • B.S., Cornell University
present educational or developmen-
what older. Mr. Shah can be e-mailed at
tal panels.
niraj.shah@execblueprints.com
We also have lunch-and-learn
Leadership Development sessions and the like. Most are
Opportunities open; anyone in the company can effective communication. We also
enroll in courses or programs that select people for certain programs,
We have a series of different lead-
are interesting to them. These range such as our Emerging Leaders Pro-
ership development programs that
in topic from training on a certain gram. The program is made up of
help people gain company knowl-
skill or system, to general devel- 18 people who have been iden-
edge and develop their own skills.
opment topics like leadership and tified by department leaders as
strong candidates for future lead-
ership roles in the company. This
Expert Advice group meets regularly with senior
Identifying Development Needs  Our most significant activity related to
leaders to discuss various topics,
employee development is our performance review process, which is based on thereby enabling participants to
a detailed series of attributes that we use to evaluate each employee. The attri- become increasingly well-rounded
butes are specific, and they assist us in identifying an individual’s strengths and in their awareness of the company
weaknesses, as well as identifying areas where we as a company can do more ­operations and in their skills.
to help employees develop stronger skills. There are two main foci: what do we
need to do as a company, and what does this particular person need to develop
to the next level?

© Books24x7, 2014 Niraj Shah   ExecBlueprints   16

Niraj Shah
Chief Executive Officer and Co-founder, Wayfair (continued)
Selecting for Advancement
When we select a candidate for
advancement, we are hoping that
this person will help drive the
company forward. So we deter-
mine: do they have the ability
to lead, do they know how to
train and develop employees below
them, and are they capable of tak-
ing control of the data and anal-
ysis and making good business
decisions based on a combina-
tion of factors? Can they take on
a broader span and additional
responsibilities; do they have the
time and project management skills
to handle multiple priorities at one
time? If we see someone showing
these competencies we move them
along at a fast rate.
Leadership Development
Challenges
The largest development chal-
lenge we face as a company is
to accommodate our fast growth
rate. Growing at such a rapid pace
makes it difficult to develop senior
general managers who understand
the company and how we operate.
While we can hire someone who
can learn what is required, this
learning curve does take time. We
strongly prefer to promote from
within when possible since we then
benefit from someone who knows
the company, our systems, our peo-
ple, our culture, and can use that
knowledge to help build the com-
pany for the future. n

© Books24x7, 2014 Niraj Shah   ExecBlueprints   17

Ideas to Build Upon & Action Points
I. During Succession Planning,
What Challenges Can Leaders
Face?
In today’s marketplace, characterized by rap-
idly evolving technology and global competi-
tion, many companies are encountering tough
choices: undergo transformation or risk extinc-
tion. Such situations call for exceptional lead-
ership that can address immediate crises, vision
a brighter, prosperous future, and inspire oth-
ers to make the journey. When identifying
leaders to successfully grow their organizations
in tomorrow’s ever-changing business climate,
today’s CEOs must consider:
• What combination of qualities will ulti-
mately prove to be the most important?
A CEO that can stanch the flow of red
ink may not be similarly effective in
formulating the next innovative product.
• When is it optimal to develop an internal
employee versus hiring an external
candidate? External individuals can
bring proven track records and fresh
perspectives, while employees know the
company, the systems, the culture, and
the people.
• Even if potential leaders are identified
within the ranks, how can they be
groomed for more advanced roles? Many
companies cannot afford to take key
team members “offline” for intensive
leadership training.
• In the midst of managing the company’s
day-to-day business, how will they find
sufficient time to devote to this concern?
Today’s busy CEOs often end up
resorting to ill-considered spontaneous
solutions.
II. The Bottom Line
Numbers do not lie. If you measure a vari-
ety of indicators, you will know if yester-
day’s succession strategies are bearing fruit in
today’s organizational successes. Is your com-
pany being served by the leaders it needs? Key
markers include:
• What kind of year-over-year growth are
you experiencing?
• What efficiencies have been gained? Have
they resulted in improved cycle times?
• How does your revenue per employee
compare with that of previous years?
• How does your EBITDA compare to the
past?
© Books24x7, 2014 Ideas to Build Upon & Action Points   ExecBlueprints   18
• What is the productivity of your sales
force?
• What shifts have you seen in your cus-
tomer Net Promoter Scores (NPS)?
• What are your employee retention rates?
If they are leaving, why?
• How many are being promoted into
leadership positions?
• What kind of external acknowledgements
are you receiving (such as awards or high
scores on benchmarking instruments such
as the Great Place to Work survey)?
III. Must-Have Leadership
Characteristics to Drive Success in
the 21st Century
Unfortunately, no one person can successfully
lead a company in every situation and phase
of the business cycle. As companies face dra-
matic change, they will need to continuously
evaluate the qualities, skills, and competen-
cies their C-level team will need to align with
prevailing conditions and requirements. Attri-
butes that may prove essential in your envi-
ronment include:
• Possession of in-depth domain expertise
• Accountability to all stakeholder groups
• Capacity to work cross-functionally and
across a global enterprise
• Courage to shed outdated, legacy beliefs
and practices
• Ability to make incisive, potentially
unpopular decisions
• Capability to embrace innovation in
building systems for the future
• Interest in objectively evaluating results
• Able to shed ego-driven attachments
to particular practices and make stra-
tegic shifts to accommodate emerging
conditions
• Capacity to inspire and lead by example
IV. The Golden Rules for
Developing the Next Generation of
Leaders
Effectively developing employees into tomor-
row’s managers and leaders requires not only
professional development opportunities but
also a culture that values and rewards con-
tinuous improvement and learning. Programs
and practices discussed in this report include:
• Hiring approaches that evaluate candi-
dates on the basis of their potential to
meet future needs, in addition to today’s
requirements
• Selection of promising individuals for
immediate and eventual succession
• Mentoring, tutoring, and coaching in
real-world environments
• Job-shadowing opportunities
• Rotational assignments to enable expo-
sure to the full range of the company’s
operations, functions, and activities
• Employee resources that share
succession-planning policies and other
key information
• Tuition reimbursement programs
• Lunch-and-learns
• Leadership academies/institutes
V. Essential Take-Aways
True leadership capability can be hard to come
by, which is why companies must always be on
the lookout for candidates and employees who
demonstrate this potential. While your leader-
ship needs will necessarily change as your com-
pany grows and evolves, you can identify the
next generation of leaders among your current
staff by conducting formal assessments such as
performance reviews and nine-box succession-
planning exercises and also by asking:
• Who demonstrates an ability to lead oth-
ers, even if they do not possess position
power?
• Who is expressing an interest in
advancement?
• Do they possess the requisite core
competencies?
• Do they have a track record of exem-
plary performance?
• Do they know how to train and develop
other employees?
• Have they been shown capable of mak-
ing good business decisions?
• Do they have the project management
skills to handle multiple priorities?
• How comprehensive is their knowledge
of the company?
• Have they demonstrated that they are
aligned with the company’s values,
culture, and business philosophy? n
Ideas to Build Upon & Action Points (continued)

?
10 Key Questions and Discussion Points

1 What is the current range of ages for C-level positions in your company? How is this range
1 typical or atypical from that of other companies in your industry?
2
2
1
What is the current range of ages for management-level positions in your company? How do
3 these ranges vary by department or function? Have there been any changes in this range in the
3 past five years?
2
4
1
4 What percentage of your workforce do you anticipate will leave their positions in the next 1–3
3
5
2
1 years? What percentage of your C-level suite will likely leave their positions within this
5
4
6 timeframe?
3
2
1
6
5
7 What succession planning strategies do you currently have in place to address these
4
3
2
7 changes? How do you identify which candidates to groom for advancement? Under which
1
6
8
5 circumstances are you more likely to seek an external candidate for upcoming positions?
4
3
8
2
7
1
9
6
5
4
How does your executive team decide whom to groom for advancement? What role does
9
3 performance in their present position play? Demonstrated leadership capability? Knowledge
8
2
10
7
1
6 and skill set?
5
10
4
9
3
8
2
7
1
6 What process do you use to identify knowledge gaps between current and future generations
5
10
4
9 of management? Which areas or skill sets do you anticipate will be most challenging? In
3
8
2
7
6 general, which skills are lacking in the next generation of leaders?
5
10
4
9
3
8
7
6
What leadership development opportunities do you provide at your company? What mentoring
5
10 opportunities exist? Structured training programs? How do these solutions help prepare a new
4
9
8 generation of management?
7
6
5
10
9 What organizational changes do you anticipate when preparing for a new generation of
8
7
6 leadership? How will the culture of the organization be affected? What opportunities do you
10
9 anticipate?
8
7
10 What are your best practices for communicating succession-planning concerns and strategies?
9
8
How often do you discuss succession planning? Is this more or less frequently compared to
10
9 five years ago? Why or why not?

10 What benchmarks do you use for evaluating your company’s leadership development
strategies? Breadth and depth of experience? Innovations brought to the company within a
certain timeframe of transition? Comparisons to other companies?

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