Succession planning and EO
Why focusing on your EO board’s development is the best investment you’ll make
So you’re employee-owned – or transitioning to it. Perhaps you’re already three, six, 18 months in and sense that your executive team could be more effective. You know your leaders (some with no previous board experience) are struggling with the reality of what being a director of an employee-owned organisation involves – are they it for purpose? What if you’re overlooking the talent you already have?
This is a challenge that Associate Adrian Wheale recognises from the support he provides to employee-owned (EO) organisations through JGA’s Executive Resourcing and Building a stronger board services.
The key, he explains, is to understand that executive resourcing is as much about ‘context’ as it is about ‘content’, because not one but multiple commercial, cultural and personal transitions are set in train when a business becomes EO.
Resourcing for change during change
That’s why Adrian doesn’t just focus on securing high-calibre candidates for pivotal posts such as MD or FD – he also supports ongoing EO board development and delivery as a whole.
‘At JGA, we are recruiting for change during change,’ he says. ‘I’ve always found this exciting because it’s a moving feast.’
His resourcing support enhances the board’s performance, strengthening governance and best practice. Front of mind is securing external or mentoring internal candidates with the right fit for the organisation’s culture, and a clear grasp of a director’s responsibility to comply with all relevant laws. He successfully mentors internal candidates to compete equally and step up to senior level.
As he points out: ‘EO doesn’t work in a vacuum away from the law. Yet, after transition, an EO board might for the first time be managing somebody else’s money (the employee owners’) as legal directors. There can be a gap in knowledge of those who step up.’
Understanding the bigger picture
‘In addition, the company itself is often moving from being product-driven to market-led, so it’s important to know where it is in the business cycle, where its structure is in its EO transition,’ explains Adrian. ‘It’s about the succession plan of individuals and the make-up and upskilling of that senior team. At JGA, we simplify the complexity of recruiting during the ongoing transition stages of EO.’
So where does Adrian start? By clarifying the context. ‘To get the right ‘fit’, I must first understand the bigger picture and where that company is going,’ he says.
‘Knowing that, I can provide an accurate diagnostic to set the scene for resourcing and development. By taking time, I can create the right resourcing ‘recipe’. I identify the ingredients to put in the pot.’
Identifying the right experience – and mindset
Frequently, this requires drawing up a role profile and, beyond that, a job description, taking account of the structural context of the senior team. Adrian will then shortlist candidates with the right mix of skills, experience, character and values to work inclusively and in line with the legal responsibilities of the role.
Psychometric tools help to spotlight leaders who will add value and diversity of thought to the team. ‘I’m looking for executives who can execute,’ he reveals. ‘They must be incisive and make decisions in a way that takes people with them, while respecting the other issues and interests at stake.’
Drive, empathy, IQ, EQ, professional qualifications, technical knowledge and sectoral understanding also usually feature on his list.
Yet the pandemic has created a new challenge for resourcing: the ‘flight of talent’.
‘Everybody wants someone who can lead and drive their transition, especially after the upheaval of Covid,’ Adrian explains. ‘EO is a great social model but other forms of business are more flexible on senior reward, so scarcity of talent and competition, including from existing employers, is our greatest challenge.’
‘It’s about the succession plan of individuals and the make-up and upskilling of that senior team’
Adrian Wheale - Associate
Developing the board in the round
However, in a future-focused EO business, resourcing for pivotal senior roles is only the start of unlocking the benefits of their new ownership model – or at least it should be.
Adrian doesn’t mince his words. ‘The biggest investment most EO businesses make is tomorrow’s MD. The biggest investment they should make is developing their board in the round.’ And the biggest enhancement? ‘Having a critical friend on that board and a framework for board delivery.
‘Curiosity, excitement, urgency, fear – most clients will be feeling one or more of these about their current situation when they start working with us,’ he concludes. ‘We enable them to harness and contextualise each effectively to resource and develop the high-calibre leadership team every successful EO organisation needs.’
Next steps
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At JGA, we are EO specialists. Our Executive Resourcing Service and expertise in Building a stronger board draws on this insight to recruit, develop and build tomorrow’s EO board for you – today. Want to know more about how we can support you?