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Until Michael Pinchbecame the first chief in-formation security offi-cer at the University ofRochester MedicalCenter eight months ago,protecting the institu-tion’s computer networksand all the data they con-tain was left to informa-tion technology workersin various departments.
But Medical Center executives,aware of numerous high-profile com-
puter hacking incidents and growingconcerns about the strength of their de-fenses, recognized a need for a morerobust computer security effort.
“I came in with a budget to hire six toeight staff immediately and reallybuild the department from the groundup. We’ve had excellent security herein the past, but never through a dedicat-ed department. It was kind of dissemi-nated throughout operations,” saidPinch.
The commitment to computer secu-rity at URMC is just one example of aworldwide trend as businesses, public
Democrat and Chronicle Sunday, February 17, 2013
Len LaCara Business Editor (585) [email protected]
Len LaCara
Last week Pope Benedict XVI an-nounced he would resign his position atthe end of February. This form of pontif-ical succession has not happened in near-ly 600 years; typically popes die on thejob. For the next month and a half we willobserve how the world’s oldest existingbureaucratic organization selects a newleader and transfers power.
These events led me to ruminate onthe importance of succession planning inorganizations, and the critical fiduciaryrole the board must play in insuring theinstitution and its stakeholders suffer aminimum amount of disruption and fi-nancial risk. Rochester has seen its shareof successful leadership succession plan-ning, most recently the Xerox CEO tran-sition from Anne Mulcahy to UrsulaBurns. A more difficult succession proc-ess is when there is a sudden loss of lead-ership resulting from the death or perma-nent incapacitation of an organization’sleader, and in many circumstances its
founder.So, how should board members go
about carrying out this responsibility? Afirst good step is full recognition that theboard works for the stakeholders andwith the CEO and senior managementteam. This fundamental principle of aboard member’s responsibility can be-come blurred as personal relationshipsdevelop and financial benefits and posi-tional veneration dull the inherent tensionaccompanying this fiduciary obligation.
Successful boards focus a significantamount of time and energy analyzing thecurrent conditions of the business, in-cluding its strengths and needs for fur-
ther development. They dispassionatelyseparate personality from competencyand inventory what additional compe-tencies would further strengthen themanagement team and embed a perfor-mance-driven culture. They establishdevelopment plans with timelines fortheir high-performing executives andcreate a continuous flow of organizationaldevelopment, with a productive feedbackand evaluation loop. In addition, theymaintain robust scenario planning thatresponds to a sudden loss of leadership.The result is a dynamic team environ-ment united around the mission of theorganization, not steering the board forpersonal gain.
I have seen where this can be over-whelming for boards and they become abit too complacent and “hopeful” thatthings will be OK. This approach intro-duces many risks that are not good forthe stakeholders. Some of the early warn-ing signals are dominant executives who,
based on their business success to date,adopt a “master of the universe” personathe board refuses to confront. One thing Ihave observed over the years is that“what got you here won’t get you there.”The more senior the position in the or-ganization, the greater need for skills ofinfluence, persuasion and collaboration,not the misguided view that positionalpower can compel cooperation.
Another trouble sign is when a boardadopts what is referred to as the “Messi-ah Complex,” as in, “We are only onegreat hire away from everything beingperfect.” Hope-filled wishful thinking isnot a strategy, no matter the disguise.Boards suffering from the Messiah Com-plex trap are usually at the beginning of aperiod of prolonged difficulty.
In the end, a board of directors thatapproaches succession planning withvigilance and vigor will continually primethe well of success.
So let’s get to work.
Succession planning critical to business success
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Click on this story atRochesterNext.com toview a video aboutcybersecurity.
Local firms,RITrespond togrowingneed toprotectcritical data
Bennett J. LoudonStaff writer
The key to
c y b e r s e c u r i t y
See CYBERSECURITY, Page 5E
MichaelPinch
PHOTO ILLUSTRATION :: DANI CHERCHIO
