Delivering a Capability Assessment to Validate CEO Succession Readiness for a Professional Services Organisation
The Brief
Future Leadership™ was engaged by a leading professional services organisation to conduct an independent, evidence-based evaluation of an internal candidate’s readiness for the Chief Executive Officer role.
The objective was to validate succession suitability, identify potential risks or development needs, and ensure alignment with the organisation’s strategic direction and values.
True Cost of Turnover
The Society for Human Resource Management (SHRM) estimates that replacing an employee can cost between 30% and 150% of their annual salary, highlighting the financial benefits of using structured assessments to improve retention. (SHRM, 2019)
Capability Assessment
Research from the University of Queensland found that skills tests combined with structured interviews significantly improve the predictive power of hiring decisions compared to traditional methods.
Well Matched Roles, Lower Turnover
Studies suggest that employees who are well-matched with their roles are less likely to leave, even in high-stress industries.
(Barrick & Mount, The Big Five personality dimensions and job performance: A meta-analysis, 1991)
Structured Interviews Enhance Diversity
Structured interviews and scorecards significantly reduce bias and improve diversity outcomes by ensuring consistent evaluation criteria across all candidates.
(Source: Diversity Australia)
The Process
The assessment process was delivered across several stages:
- Stage 1: Planning and Co-Design
Co-designing with the client, Future Leadership conducted a situational mapping of the context for the assessment and confirmed priority capabilities and critical experiences to develop an agreed assessment criteria and assessment methodology aligned to our proprietary Model of Leadership. - Stage 2: Executive Assessment
A series of executive assessments included a career path analysis, behavioural and reference interviews, psychometric assessments and Global Leadership Profile to determine how they interpret their own and others’ behaviour, maintain power and respond to complexity. - Stage 3: Draft Executive Development Report
Synthesising information and insights from multiple assessments, we drafted Executive Development Report to provide a sound basis for discussion with the leader regarding strengths and development areas and career aspirations. Coaching sessions facilitated deeper understanding of the implications for readiness to the CEO role and a development plan to support readiness for future opportunities and growth within the current role. - Stage 4: Finalise Executive Assessment Report
A triad debrief and walk through of the final Executive Assessment Report with the project sponsor preceded a playback of the report for consideration by the Board Chair.
The Outcome
The Executive Assessment for Succession delivered the following outcomes:
- Validated Readiness
The assessment provided a clear, evidence-based view of the internal candidate’s strengths, leadership style, and areas for development, supporting a confident succession decision. - Strategic Alignment
The process confirmed the candidate’s alignment with the firm’s values, strategic priorities, and cultural expectations, reinforcing the integrity of the internal appointment. - Development Roadmap
The assessment highlighted targeted development opportunities to support the candidate’s transition to the CEO role, ensuring long-term leadership success.
