Survey reveals major impact of leadership succession planning on commercial success
New research, published by global management psychology firm RHR International, provides clear evidence that careful planning for leadership succession at major organisations has a significant impact on their commercial success.
The research, consisting of the findings of a survey entitled Practices in developing future leaders? finds there is a significant, positive correlation between a company's ability to develop senior executives internally and its confidence in its ability to meet future growth needs.
The research indicates that organisations enjoying the great benefit of having a good selection of highly able executives who are definitely senior management material are frequently those organisations which have a strong, well-organised programme to develop high-potential? employees.
According to survey respondents, the two activities that have the greatest positive impact in developing these high-potential employees are developmental stretch? assignments within a company, and the personal involvement of the chief executive. Many organisations appear to underestimate the importance of the role of the chief executive in developing a high-potential employee? says Dr Robert Kovach, managing director of the UK office of RHR International.
?Recent succession scrambling and embarrassing early departures of externally-recruited senior executives at many UKorganisations illustrate the trauma that an organisation can suffer when it is inadequately prepared for leadership succession.