SMOOTH TRANSITIONS John Stewart knows how to make a succession plan succeed.
Anyone who works at The John Stewart Co. has inevitably heard this line: “You work with Jon Stewart? I love ‘The Daily Show!’” Uh, no, it’s actually the other John Stewart, the affordable housing legend.
But this Stewart does have his own share of one-liners. When asked why he hasn’t retired, he says, “The idea of staying home and watching ‘As the World Turns’ doesn’t do it for me.”
Still, Stewart, now 72, knows he can’t lead his company forever. After heading up the firm for nearly three decades, Stewart in 2001 entrusted the president role to Jack Gardner, with whom Stewart had worked briefly in the past. (Gardner later added the CEO title.)
It has proven to be the right choice for the firm. The succession plan, with Stewart staying on board as chairman, has gone smoothly, Stewart says, thanks to the following strategies
- Train your successor for several months to a year. While Stewart was still running the company, he and Gardner worked side-by-side in adjoining offices for a year. This gave Stewart a chance to teach Gardner everything the apprentice needed to know.
- Involve the management team in your decision. Stewart selected a relatively new hire to take over the company; a decision which could have easily created animosity among the company’s long-time employees. But Stewart avoided such a situation by involving them in the decision and asking them to “interview” Gardner individually and as a group.
- Know your boundaries. The executives carefully divvied up their responsibilities, making sure Stewart does not get involved in projects where he’ll step on Gardner’s territory.
- Keep up your connections. Stewart, who has strong name recognition in the affordable housing and multifamily worlds, maintains relationships with the financial community, city agencies, and other powerful groups.