During a recent Leaders Ought To Know retreat, I had the good fortune to sit down with the President & CEO of Helena Chemical Company, Mike McCarty. We discussed a number of leadership development issues. Here are excerpts from our conversation on the importance of organizational succession planning.
Phil: Mike, you were asked a number of questions a few minutes ago, but one of the questions that intrigued me was what’s it like to be the president of a $1.3 billion multinational company, primarily, in the United States, but serving countries around the world. How do you answer a question like that?
Mike: Well, I think the question was what is my biggest challenge of running almost a $4 billion dollar corporation and the response I gave to the individual was people is probably the biggest opportunity and challenge. When you have that many folks out there, you’re going to have a tremendous amount of opportunities. You’re biggest asset in the company are people, but your biggest opportunity are also people because with people, it also leads itself to change with companies. We’re in a constant state of change in our personal live, professional lives and we need to help, I need to help, guide that and lead that, which then creates the opportunities on the people side of the business and why we need to do these things.
My job in the company is to look out at where we’re going to go in the next five or ten years. I’ve got all the confidence in the world that all our managers and all our employees are going to take care of the day-to-day business and the annual business. We’ve got to look and I’ve got to look at the management team for the future. So the challenge, again, comes back to where do we go, how do we change and how do we communicate that change.
Phil: You mentioned just a minute ago the importance of the people and also the challenge associated by people. Talk to me a little bit about succession planning within Helena Chemical. You know that most of the people that will be watching this are people who are focused in on leadership and leadership development, so on and so forth. First of all, how do you identify leaders within the organization both current and future and then how do you develop them so that you can prepare them for the challenges that are to come, as well?
Mike: That’s a good question and a timely question for us because we’re in the process right now with my executive team. We’re going through a new strategic plan for our next five years. One of the things that has surfaced and we knew this is the area succession planning and it goes back to my generation of the company when we joined the company. I jokingly say we’re a bunch of young kids. We’re a bunch of 25 year olds that joined the company. We’ve all been here a long time now and we’re starting to see the retirements take place.
This is something that Helena will experience that we’ve never really experienced before and that’s going to be more of a mass retirement staggered over the next five years. Now, that leads itself to the opportunity of who replaces everyone in the company and succession planning. I’ve asked all of them to start to identify the next generation of who has that opportunity, of who may want to move to different geographies because, again, being a nationwide company, I think that, again, is a different opportunity. The younger generation I see today is not as prone to move as what we were when I was coming up in the industry.
Well, we’ve done a relatively good job of identifying those individuals. Now, it’s going to be creating the opportunities for them and as that takes place and we’re in the process of doing that right now. One of the things I’m trying to do is get that next generation in here to the corporate office because when you move to a corporate office, it’s a different environment from when you’ve been out in the field. We’ve all experienced that, but until you’re here, you really don’t know. My wish would be that we would have a very seamless transition of individuals and that’s what I’m trying to accomplish right now where we have staggered retirements of the executive team where they don’t all go at one time.
We’re starting to lose them now and if I just look at it for the 20 or 25 people that we have in that group, I feel we’re in very, very good shape. Where we’re going to have our opportunities, it’s kind of like the domino effect. As people move up into management and then they move up into the senior roles at the field level, who takes the place at the sales rep level and our branch manager level? That means we’re going to have to do a higher level of recruiting. So we’re going to need more people. We’re going to need more of that younger generation coming in, which is contrary to what’s really going on with the business in the U.S. today when we look at unemployment. We’re going to be out there actively recruiting at universities right now to try to take care of this issue that you had talked about with succession planning.
I’ll share more from this conversation in the coming days.
Phillip Van Hooser