On Monday the 17th of March 2025 we learned that Absa appointed Kenny Fihla as CEO after surprise resignation from Standard Bank. Fihla resigned on the Sunday night and his appointed was announced on Monday morning.
Standard Bank responded with “Whilst this is a heavy blow for us, the group is blessed with a surfeit of talent and deep succession pools.”
THIS ISN’T YOUR AVERAGE RESIGNATION
The resignation tells us a few things about the fluidity of personnel, specifically at the executive level. Any person involved at the strategic level or an organisation will be required to evacuate their positions immediately after their resignation. It also tells us that the organisation itself needs to have a plan to deal with such resignations. Statistics show that on average an executive is expected to stay in an organisation for just short of five years. Of those five years the first two are used to learn the culture and implement their own ideas and the balance to get it right.
MANAGING THE POTENTIAL (OFTEN LIKELY) FALL OUT
RISE’s Corporate University concept is aimed at mitigating the fall out that happens when a key person leaves a company’s employ. A leaderships change comes with all sorts of uncertainty. In the case of listed companies share prices can have an impact as well. In fact Absa’s share price rose by 2.7% to R189.19 in early trade, reflecting investor confidence in the leadership transition. Standard Bank didn’t fare as well.
The intention of the Corporate University is to facilitate the necessary transfer of skills at each level of the organisation. Not only at every level but at multiple levels. It makes sense for the executive to learn from those under them, after those are the people who understand the ins and outs of the organisation.
The Corporate University is at the heart of the company. It is the message that goes to the public that provides the comfort it needs to know your company is able to survive disruptions. If Standard Bank had a Corporate University it would have added a lot more meaning to the words “the group is blessed with a surfeit of talent and deep succession pools.”
You already have a Corporate University. We just need to help you make it real.
We will discuss Corporate Universities in more detail over the next few weeks. If you can’t wait until then please contact us.