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In today’s job market up to thirty percent of C level replacements come from an external hire, while forty years ago, this number was only ten percent. Additionally, it is found that up to forty percent of new CEOs fail to meet the organization’s performance expectations in the first year and a half. While there is no way to guarantee a causal link, we, at our RSI Honolulu Succession Management Firm, are willing to guess that a general lack of succession management planning is an underlying or contributing factor. Without the forethought to ensure success from an employee level, an organization is not setting itself up for longer-term operational success.
When an organization, corporation, business or board find they need to replace a high-ranking member due to retirement, resignation or other reason they are typically left with only two options. Either they can promote someone internally, or they can turn to an outside hire to fill the role. While both may have their benefits and indeed a plethora of drawbacks, an organization which has partaken in proper succession management planning will find themselves in a much better position to fill the role than they would have otherwise.
Without succession management planning, a company would find themselves in the position to promote someone from within who is unprepared, under qualified or generally ill-suited for the job at hand. On the other hand, the company could turn to an external hire, a process which is not only time consuming and potentially expensive. Still, it may conclude with a new employee who does not fit well with the existing team or does not have the desired qualities despite being qualified on paper. In either situation, the organization is not in a position to move forward without a capable and confident leader.
This is where the process of succession management planning comes into play. Succession management refers to the long-term strategic process of ensuring a company has employees who meet their full potential to take over critical executive roles within the organization as the need arises. Potential replacements are identified long before the need arises; they are then guided and developed according to company needs and values to be the replacement of high-level executives. However, one of the critical considerations for this process is the length of time it will take to successfully and adequately prepare a successor, possibly years before the need arises, not only months.
The Succession Management Specialty Team provides services for clients in the Accounting, Advertising, Aerospace and Defense, Automotive, Banking, Biotechnology, Construction, Consumer Products, Computer Software & Hardware, Education, Energy and Utilities, Finance, Government, Human Resources, Healthcare, Insurance, IT, Industrial, Legal, Marketing, Manufacturing, Medical, Non Profit, Pharmaceutical, Sales, Technology, Telecommunications and Transportation industries.
We, at Reaction Search International Honolulu, understand the process of succession management planning, the challenges it presents and how overwhelming it may seem to get started. This is why we want to help you get a head start in identifying and developing internal candidates to take on key leadership roles as they become available. Our Honolulu succession management planning team has the capacity to work with your organization to determine and implement the best succession planning strategies to meet your distinct needs and goals.
Contact us today to find out how we can help you develop your next leader.