The most important—and difficult—decision a hospital or health system board of directors can make is choosing the next CEO. Planning for a change in leadership involves usually two, even three years’ effort, and it includes a candidate search and selection process; creating a deliberate, well-communicated, and well-understood transition plan; and delivering a positive message about the organization’s future direction.

Boards tend to regard CEO succession planning as less than critically important until the CEO is near retirement age, but turnover is unpredictable and often occurs before retirement age. In order to be prepared for a sudden, unexpected change in leadership, succession planning should always be on the board’s agenda. This Elements of Governance^® is intended to help boards create a leadership transition plan that facilitates an orderly transition to new leadership.

Members click here to download the ePub version.