02-08 Succession

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“Tell staff jobs OK.” Those were the final words my father uttered before he died in 1980 at age 71. His early death was a shock but a lesson to prepare an organization for the succession of its principle players early in the game.
The CFIB succession story began in 1982 even though I was not planning to step down until our 25-year anniversary in 1996. And it was a process enthusiastically embraced by the Board, because each individual Board member was equally concerned with their own succession as owners of medium-sized enterprises.
We started by designating three possible successors and enrolling them in a US-led leadership training program that covered a period of 10 years. Having the training conducted in the US was a security issue. We just did not want to make my succession a news story in Canada. Putting all the key players through an exhaustive process together was designed to ensure they would work as a team in the future regardless of who was chosen as the new President and CEO.
Succession then became part of the many key functions of the organization’s Board of Governors. It was always difficult for Boards over the years to appreciate how specialized CFIB had become with a membership renewal rate of 85%. At other voluntary advocacy organizations around the world, it would be hard to find renewal rates over 80%. So, the more specialized you evolve as an organization, the more important it is to replace leaders from within.
Succession is equally important for other leadership functions. Over the years one of our weaknesses was developing future leaders within our field operations. The system of Division Managers handling the recruitment, selection and training function by themselves led to District Managers of the same age and temperament as their bosses. Only centralized HR led to the development of younger, better educated salespeople who could be developed as future leaders.
And early in the game, I looked for legislative people who seemed to be able to easily move from policy into politics, something that is not natural for policy wonks. Senior cabinet ministers have this skill and that is the skill demanded of CFIB leaders. I recognized Dan Kelly as a future leader, three months after he was hired in 1993.

Lessons Learned

It is a danger to the future of CFIB if a future Board has its own agenda and wants to hire from outside so that they have their own President and CEO who put their agenda into effect. The CFIB module is unique in the world, and changes in the model cannot be made without massive consequences. Succession from within protects the future.