Granted, I was on the receiving end of a succession pass. And as hard as it was for me to assume the responsibilities of my new job, I can’t imagine having to prepare for the passing of the reins. In my case, my day-to-day management responsibilities were made easier by the preparation of my predecessor, who created dozens of primers and manifestos on the magazine’s various practices. And she established an open-door policy, encouraging me to call with questions or if I was in need of guidance—and also deferring any calls from her former staffers to me, reinforcing my authority.
Indeed, the one thing I learned about successful succession and transition planning is that it’s a two-way street. Effectively preparing for the power pass-off is as important as having a plan to implement the new era of management. Which is why this issue’s theme, Succession Planning, is particularly important to me: It’s too often an overlooked area of corporate management. Sure, apartment firms worry on a daily basis about how to push revenue, maintain occupancies, get the right sales price for an asset. But who will take over when the company founder or CEO nears retirement age? That question, unfortunately, gets too little attention.
That being said, there are plenty of companies that have their house in order. Take Essex Property Trust, which transitioned from outgoing CEO Keith Guericke to incoming chief Michael Schall over the course of a nine-month period adorned by a clear plan of action and guided by expert HR consultants. (For more on Essex’s well-executed transition, see senior editor Chris Wood’s story “A Natural Fit,” on page 32.) And if yours is like so many companies that aren’t sure where to begin when it comes to thinking about how to transfer power in the executive office, we offer a step-by-step guide to the process. (See “Transfer at the Top,” by senior editor Les Shaver, on page 38.)
The sad truth is that not all succession stories have happy endings. Many don’t pan out the way the company’s founder or board or employees had hoped. Yours doesn’t have to be one of them. Take it from someone who knows.
CORRECTION: In a profile of Security Properties (“Multifaceted Growth,” February 2011), we noted that the company owns more than 40,000 units. In fact, the Seattle-based firm’s current portfolio comprises approximately 17,000 units. Since its inception, Security has acquired or developed nearly 64,000 housing units. Multifamily Executive regrets the error.