Thursday, January 13, 2011

Where will the next set of CEO shoes drop?

The New Year is barely two cold weeks old, and already, brand name CEO changes have been occurring at a rapid clip. Newell Rubbermaid, NPR, Fox Networks, fallout from AMD. Name it to claim it.

The flurry of activity underscores a trend that started last fall: Turnover reflects companies need to change from a low to zero growth climate to a more aggressive posture in a slowly improving marketplace. Leadership tends to fall at the top of the change list, proving once again the chicken and egg battle facing boards. Do we need a star performer to create a winning strategy, or do we need better systems, process and culture/people to ensure sustainable performance? The answer is both but unfortunately far too many remain enamored with the savior mentality. We'll keep watching for exceptions to this conventional rule and will ask you do the same here.

Here's a prediction: After several years of declining turnover, this year will see more executive exodus than the previous two combined. Of course we said the same thing when the Great Recession was gathering steam back in 2009 and nothing really changed. Many boards decided the devil they know was better than the devil they didn't know. Guess that's how predictions go sometime. Some stick, others fail -- proving once again that trying to determine a new new normal future is a lesson in futility. It might just be better to enjoy the moment?

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