The Lessons of JC Penny: How Bringing in New Blood at the Top Can Lead to Substantial Bleeding
For company founders and sitting CEOs, the decision to pass the CEO seat to another is a big, risky decision. This article talks about how critical boards are– especially for closely held companies.
This Forbes.com article has been getting about 2,000 reads per hour. It uses JC Penney’s problematic CEO transition as an example of what can happen when the board isn’t strong enough during a transition, and suggests ideas about how private companies can do much better. Read this Forbes article, then submit your comments.
Tags: board of directors, business acumen, closely held, governance, ownership transition, succession
Robert Sher is founding principal of CEO to CEO, a consulting firm of former chief executives that improves the leadership infrastructure of midsized companies seeking to accelerate their performance. He was chief executive of Bentley Publishing Group from 1984 to 2006 and steered the firm to become a leading player in its industry (decorative art publishing).