Why Boards Get C-Suite Succession So Wrong
Would you hire a surgeon who wasn’t trained in medicine or delegate a major financial investment decision to someone who hadn’t studied finance? Of course not.
But all too often organizations leave their most consequential people decisions to board members who may be experts in other business domains but who are woefully uneducated about and inexperienced in evaluating C-suite talent.
The three competencies rated most important in the real world were managing human capital, managing decision-making processes, and managing strategy and innovation. But the researchers found that those three topics were the least represented in required MBA courses: Only 29% of programs offered two or more courses in managing human capital, and a mere 19% had two or more focused on managing decision-making processes. By contrast, 87% gave that same high weight to managing administrative activities.