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QUESTION 7A: Succession Planning (25 marks)
Format: Board Advisory Report
BOARD ADVISORY REPORT: FOUNDER SUCCESSION PLANNING
TO: Menu-Craft Board of Directors
FROM: Executive Search and Succession Committee
DATE: [Current Date]
SUBJECT: Strategic Succession Options Following Founder Departure Announcement
EXECUTIVE SUMMARY
The sudden announcement of both founders' departure creates critical leadership continuity risks for Menu-Craft, requiring immediate evaluation of succession options to preserve our 24% market share position and maintain stakeholder confidence across our 500,000 customer base and 600+ supplier network.
SUCCESSION OPTIONS EVALUATION
1. Internal Promotion Strategy
Point: Promote current Chief Operating Officer to interim CEO with Chief Finance Officer assuming expanded commercial responsibilities
Because: Internal succession maintains cultural continuity and leverages existing organizational knowledge
Application: MC's chef-founded culture emphasizes quality and local sourcing expertise, which the COO has demonstrated through 5-year tenure managing our 600-supplier network and four production lines
Point: Establish mentorship transition period with departing founders over 90-day handover
Because: Founder knowledge transfer prevents loss of critical supplier relationships and recipe development capabilities
Application: MC's differentiation through locally-sourced Ayeland recipes requires preservation of founder networks with local farmers and organic suppliers
2. External Recruitment Option
Point: Recruit experienced CEO from food industry with proven scale-up capabilities in subscription business models
Because: External leadership brings fresh strategic perspective and growth acceleration expertise
Application: MC needs leadership capable of expanding beyond current 500,000 customers to compete with Fresheey's 35% market share in Ayeland's 40 million population
Point: Risk mitigation through extensive cultural fit assessment and board oversight during integration
Because: External appointments may disrupt MC's local brand positioning and supplier relationships
Application: New leadership must maintain MC's strategic positioning as high-quality, locally-sourced alternative to international competitor Fresheey
3. Interim Management Solution
Point: Appoint experienced interim CEO with food industry background for 12-month transition period
Because: Interim leadership provides stability while comprehensive succession planning occurs
Application: MC's public listing requires consistent leadership messaging to maintain investor confidence during search for permanent successors
Point: Parallel development of internal talent pipeline through accelerated leadership development program
Because: Long-term succession planning reduces future dependency on individual leaders
Application: MC's 15-year history demonstrates need for sustainable leadership beyond founder-dependent model
CULTURAL WEB TRANSFORMATION ANALYSIS
Current Cultural Paradigm
MC's founder-led culture centers on chef expertise and local sourcing excellence, with organizational beliefs emphasizing quality over volume and community relationships over corporate efficiency.
Required Cultural Shifts
Power Structures
Current State: Founder-centric decision making with 10% shareholding each
Transformation Need: Distributed leadership model with board oversight
Application: New leadership structure must maintain quality standards while enabling scalable decision-making processes
Organizational Structure
Current State: Flat hierarchy with direct founder involvement in recipe development
Transformation Need: Formalized management layers with clear accountability
Application: Succession requires establishing head chef role and formalized supplier relationship management to replace founder involvement
Control Systems
Current State: Informal quality control through founder oversight
Transformation Need: Systematic quality assurance and performance metrics
Application: New leadership must implement robust KPI systems beyond current metrics to maintain MC's industry-leading retention rates
Rituals and Routines
Current State: Weekly founder-led recipe selection and supplier meetings
Transformation Need: Formalized processes with documented procedures
Application: Successor leadership requires established protocols for maintaining MC's 30-recipe weekly variety and seasonal ingredient focus
Stories and Symbols
Current State: Founder narrative of chef-driven innovation and local expertise
Transformation Need: Evolution to professional management while preserving quality heritage
Application: New leadership must maintain MC's brand story while demonstrating capability to compete against Fresheey's international resources
STAKEHOLDER IMPACT ASSESSMENT
Customers (500,000 active subscribers)
Risk: Uncertainty about recipe quality and local sourcing commitment
Mitigation: Clear communication emphasizing continuity of MC's core values and chef-led recipe development
Application: Customer retention critical given industry average of <25% subscriptions lasting beyond six months
Suppliers (600+ local producers)
Risk: Relationship disruption affecting ingredient quality and availability
Mitigation: Formal supplier relationship management system with dedicated account management
Application: MC's competitive advantage depends on maintaining exclusive relationships with best-in-class local suppliers
Investors (80% external shareholders)
Risk: Market confidence decline affecting share price and growth funding
Mitigation: Transparent succession timeline with regular board updates and investor communications
Application: Public listing requires regulatory disclosure and market confidence maintenance during leadership transition
Employees (production and corporate staff)
Risk: Talent retention challenges and operational disruption
Mitigation: Internal communication strategy emphasizing career development opportunities
Application: Specialized workforce knowledge of MC's quality processes and local supplier network critical to operations
STRATEGIC RECOMMENDATION
Preferred Option: Hybrid Approach
Immediate (0-30 days): Appoint interim CEO with food industry experience
Medium-term (30-180 days): Comprehensive external search with internal candidate development
Long-term (180+ days): Permanent appointment with structured cultural integration
Success Metrics
- Customer retention rate maintenance above 70% during transition
- Supplier relationship continuity with <5% partner loss
- Market share preservation within 2% of current 24% position
- Employee retention above 85% for key management positions
Board Oversight Requirements
- Weekly succession committee meetings during first 90 days
- Monthly stakeholder communication updates
- Quarterly cultural integration assessment
- Independent succession consultant engagement for search process
Professional Skills Demonstration:
- Evaluation: Systematic assessment of succession options against strategic criteria
- Analysis: Cultural web framework application to transformation requirements
- Communication: Clear stakeholder-specific impact analysis and recommendations