Examining the Criteria Used for Selecting Employees for CEO’s Succession Planning in Selected Companies in Ghana

Abstract

Selecting a CEO from a large pool of candidates is a challenge for many organizations. Succession planning ensures that key people are mentored and developed to fill key roles when vacancies arise. This study examines the influence of Chief Executive Officer (CEO) succession planning (SP) on firm growth in Ghana, considering the external environment. Twenty-one participants from ten industries were purposively sampled, and data were gathered through interviews and written reports. The study reveals that prospective CEO successors are prepared by identifying their leadership abilities, management skills, strengths, and formal educational qualifications. Preparation activities include delegation, mentorship, rotation, and training programs. However, the findings indicate that only 10% of businesses have effective SP procedures, while 20% engage in informal SP without a formal strategy. A significant 70% lack SP entirely, leading to instability and growth challenges upon CEO departure. The study highlights the role CEOs play in succession planning, guaranteeing service continuity and considering external environmental forces. Companies with SP strategies in place, such as world-class firms in Accra and Tema, Ghana, have achieved remarkable success due to good leadership and succession planning. This study highlights the importance of Ghanaian companies to prioritize succession planning in order to ensure continuity and long-term sustainability.