Leadership succession and speed of development is the primary internal challenge for leaders today.
Mitigate against the loss of critical talent in the future – identification of tomorrow’s leaders is crucial – the biggest threat to the business over the next 12 months.
The urgency to identify and develop future leaders is intensifying.
Yet, only a few (less than 40 percent) are confident that their company currently has the right talent to drive business success. (Lumesse and Loudhouse)
This is a strong indicator that current succession and development processes are unable to guarantee the development of future talent.
You may be unable to effectively deal with top talent attrition in the future. Businesses are finding it difficult to identify future leaders and up-skill them accordingly. May be, HR and business leaders are too preoccupied with other priorities in running day-to-day business operations.
HR professionals must look to develop an advantage ahead of competitors.
Strong and skilled leadership of a business has never been more important. As the global economy recovers from a period of uncertainty, businesses require captains to steer companies to success.
Leadership and succession planning is an area in which HR professionals must look to develop an advantage ahead of competitors.
In light of the topsy turvy nature of the global stock markets, which might be forecasting a coming general worldwide business decline, businesses might need these leaders in 2016 more than ever.
Businesses need to build a long-term strategy for succession planning to ensure that the right people with the right skills are in the right place at the right time to service and develop the business. Businesses may quickly lose competitive advantage and be less able to adapt to future market changes, if this is delayed or given a second priority.
More than 50 percent of companies do not have a strong candidate prepared in the high risk, and not uncommon event, of a CEO transition. One third have not yet identified CEO successors. (AlixPartners and Vardis)
Public companies are the most prepared. Whereas, half of smaller PE portfolio companies (revenues below $100 million) lacked having a successor candidate in the pipeline.
It is difficult to understand why so many organizations continue to under-assess and under-prepare the individuals they plan to launch into their company’s highest role, especially in light of recent high-profile CEO transition failures. Though businesses do realize and recognize that effective leaders are the cornerstone of business success, you do not see much of leadership pipeline planning.
Building a leadership pipeline means being able to spot and develop potential, that helps companies a real source of competitive advantage.
Suresh Shah, Pathfinders Enterprise