Succession planning should be a critical exercise in finance. Too bad so many companies avoid it.
When Oren Shaffer retired from his post as CFO at Qwest Communications earlier this year, controller John Richardson became the new finance chief. Assistant controller Bill Johnston took Richardson's old job, internal-audit head Pat Halbach became assistant controller, and director of financial reporting Mary Mowery moved into the internal-audit slot. No recruiters were called. No tasks languished while the new CFO scrambled to find replacements.
Following a process that is all too rarely practiced, each executive had been groomed for the next job as part of the telecom company's rigorous succession plan.
The plan targets a group of high-potential employees in the finance department, rotating each through different units and functions, where they receive on-the-job experience in preparation for a job at the next level. If you are not doing this, warns Richardson, you are hurting employees and the company.
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