Fund Manager Succession: It’s Make or Break
Posted on 04/23/2021
Michael Hogg is Deputy Chief Investment Officer and Professor Adrian Furnham is Principal Behavioural Psychologist at Stamford Associates.
Succession management hinges on the psychology of change. The replacement of one person, or team, with another. In the arena of active investment management the issue can be particularly acute. Managed well, it can lead to success for all stakeholders. Managed poorly, it can spell disaster; impaired stewardship, broken trust, and client exodus. As investment consultants, we have seen many approaches to succession over the years. Some succeed. Yet many more fail, or muddle through for want of sufficient attention.
Succession management appears in many different forms across industries. As a common thread to all, it may be thoughtfully analysed and planned over time, as a strategy to minimise risks and maximise success. Or it may be “rushed through” out of necessity, an urgent reaction to a contingency event. No time to adjust, iterate and improve.