Morrisons head hunting fiasco all too typical say experts

Chronic failure of business leaders to execute smooth succession plans is costing UK companies millions of pounds, according to leading executive recruiters.

Supermarket mogul Sir Ken Morrison, 74, has been accused of dragging his heels over the appointment of a new Chief Executive as the Morrisons share price tumbles. Furious non-executive board directors have reportedly issued threats to quit if a new boss isnít found soon.

John Wakeford, of top headhunters Hitchenor Wakeford, says the chaos highlights the danger of bungling changes at the top:

ìFailing to recruit at the right time causes boardroom unrest and unsettles investors. However, too many businesses fall into the same trap.

This particular appointment at Morrisons has been painfully slow and hasnít been helped by Sir Kenís recent announcement that he hopes to be with the company for another two to three years.

The whole affair highlights the importance of succession planning and the need for a smooth transition between senior management personnel.

ìDiscreet head hunting does take time and itís not an overnight task but key stakeholders in the business must remain fully in the loop. A strategy with deadlines and contingency plans should be adopted. In the best cases, planning for the next management team begins years ahead and people are targeted and groomed for particular roles in the future.

ìMany things can stall the appointment of new people. Personal circumstances, renegotiations with existing employers, restrictive contracts and share options all create sticking points that must be carefully overcome.

Wakeford says high street retailer Next got the succession plan right when they appointed their new Chief Executive:

ìAn example of good practice is David Jones the Chairman of Next and deputy chairman of Morrisons. He is passionate and vociferous in his views that executives should not outlive their welcome and have a duty to grow their own successors which he did when he appointed Simon Wolfson as Chief Executive. Other businesses should follow his example.î