Companies CEOs Leave Behind Hold Intrigue

Business journalists flocked to the appointment of Mark Hurd as CEO of Hewlett-Packard last week. With HP in the news following the firing of Carly Fiorina, her successor deserved considerable coverage.

But there is another company affected by Hurd's new position: the technology company he headed in Ohio, NCR. The story of the organization he left behind might hold equal intrigue.

"NCR didn't have a firm plan in place, so the departure of Hurd caught them by surprise," says Jaclyn Giovis, business reporter with the Dayton Daily News. "They weren't necessarily ready to groom someone else."

Amid the typical reporting of why a CEO has left, the natural question business reporters ask is who will fill the void. But many executives are reluctant to give any response because of internal hiring policy and practice.

Instead of asking the obvious question about possible successors, think outside the box.

"What I struggle with is the fact that sometimes you feel like you must have this concrete answer," Giovis says. "When things like this happen, a company has to take care of its own business first. Do the best you can to find a different angle. Ask an earnings question, for example."

Investigate earnings for previous years, and push executives to help readers understand how a new leader would mirror or deviate from past financial results. In her initial reporting, Giovis highlighted the business plan of officials left behind.

Do your homework on the company's background to learn about hiring trends and average tenure. This can lead to stories about stability or shaky turnover at the top of a company.

Also, gauge employee reaction as best you can. Although many corporations will institute policies against talking to the media, not all workers oblige their organization's wishes.

"A few of us went out to the company and flagged down cars to get employee reaction," Giovis says. "Corporate leaders tend to build up a wall of defense, but employees want to talk about this stuff."

Analysts are another good source, but be skeptical of their answers and look for corroboration from outside sources. Giovis suggests that university officials who have seen how the company has grown over the years can provide useful perspective.

Save the executive transition for a follow-up piece, much like the Daily News did for its Sunday feature on NCR. Interestingly enough, another sidebar by Giovis suggested Fiorina as a possible successor to Hurd. The ironies are endless.

Copyright © 2008 Donald W. Reynolds National Center for Business Journalism