Two weeks ago, Steve Jobs resigned from Apple, setting off a flurry of laudatory articles about his tenure and achievements. The whole thing had the sort of flash, glitz, and stage management we’ve come to expect from Apple and from Steve Jobs.
People had wondered, often very loudly, if Apple had a succession plan at all and many articles on the succession dissected the way Apple did it. Industry Week ran an article headlined “Steve Jobs’s Departure Puts Spotlight on Succession Planning” with this teaser paragraph.
“When Steve Jobs resigned as Apple Inc. CEO last week, the iconic leader and innovator left behind a legacy that would seem difficult, if not impossible to replace. But John Challenger, CEO of executive outplacement firm Challenger, Gray & Christmas, says Apple’s ability to attract top-notch talent and groom next-generation leaders should benefit the company moving forward. Tim Cook, who served as Apple’s COO, took over Jobs’ position.”
Meanwhile, in another part of the economy, Costco slipped the announcement of James Sinegal’s retirement and the appointment of COO Craig Jelinek as CEO into the middle of a news release on August sales. The Wall Street Journal article on the succession was titled “Costco CEO to Step Down.” Here’s the lead.
“James Sinegal, chief executive of Costco Wholesale Corp., is stepping down at the end of the year from the company he co-founded in 1983 and helped build into the country’s biggest member warehouse chain.”
Both companies held their succession plans close to the vest. In both companies, a COO with a good track record was promoted to CEO. Tim Cook joined Apple in 1998 as a VP of Operations. Craig Jelinek started out as a Costco store manager in 1984 when he opened the company’s sixth warehouse. They both follow an iconic founder who will remain on the board.
What’s different about these two successions is the style. The Apple succession was dramatic, in keeping with the company’s style. At Costco, the succession announcement was low key, the Costco way. That’s the lesson.
Succession planning is not a dry, follow-the-recipe process. In the companies that do it well, most of the basics are the same, but still true to the company’s values and style.
