Far too often, corporate boards fall into the trap of selecting chief executives based predominantly on past triumphs and historical data. While a stellar track record undoubtedly offers reassurance, it provides an incomplete picture of a candidate’s prospective leadership, particularly in navigating future challenges. This backward-looking approach frequently leads to misaligned expectations and, in some cases, premature departures.

To circumvent these pitfalls, boards must integrate a forward-thinking element into their CEO selection process: the growth plan. This compels candidates to articulate their vision for the company's future, moving beyond generic assurances to provide a structured and precise outlook. A well-crafted growth plan outlines the candidate's proposed business, organisational, stakeholder, and personal leadership impact, specifying measurable successes within a 12-month timeframe.

The process of developing a growth plan offers several benefits. It encourages candidates to prioritise the company’s needs over their individual aspirations and provides valuable, comparative insights for the selection committee. Furthermore, it can highlight potential misalignments between a candidate's strategic inclinations and the board's direction, such as a preference for organic growth when the board envisages M&A as the primary driver. The growth plan thus serves not merely as an assessment tool but as a foundational document for a transparent and accountable board-CEO relationship from day one.

Image Recommendation: An illustration depicting a single figure standing at a crossroads, with multiple clear, distinct arrows pointing in various forward directions, symbolising strategic pathways. The arrows should be well-defined, in contrast to the current image where they are tangled and chaotic.