Leaders Unlimited, the strategic partner of Korn/Ferry International on the Africa continent, today commented that the lack of preparation was the most common succession planning mistake that organisations make.
This view is confirmed by 50% of recruiters who completed the seventh edition of the quarterly Executive Recruiter Index, released recently by Korn/Ferry International, the premier provider of executive search, outsourced recruiting and leadership development solutions.
Other succession planning mistakes highlighted by recruiters in this survey were no formal evaluation process (27.4%), subjectivity in selecting internal candidates (17.4%), no buy-in from the board of directors (3.5%) and position specifications that are too rigid (2%).
When asked what percentage of organisations today have a capable CEO-in-waiting should the current CEO unexpectedly depart, the majority of recruiters (60.8%) answered `40% or less`. While responses were fairly consistent from region to region, North American recruiters were slightly more optimistic about organisations` succession planning efforts than other regions. When asked what percentage of organisations have a capable CEO-in-waiting, fewer than half (48.9%) answered `40% or less`.
"Finding a successor for the CEO role is one of the most important activities an organisation and its board have to undertake," commented Joe Griesedieck, vice-chairman and managing director of the CEO practice at Korn/Ferry International. "Corporate scandals and bad-apple CEOs, though clearly the anomaly, have monopolised the media and put ever more scrutiny on today`s corporate leaders. In this environment of transparent leadership and increased regulation, companies are recognising that succession planning is a never-ending process that begins long in advance of a CEO`s decision to move on, voluntarily or otherwise."
The survey also looked at who should drive an organisation`s succession planning. The most common response was a succession planning committee of the board of directors (42.8%). The next most common response was the board of directors (41.3%), followed by the incumbent CEO (11.4%). By region, Latin America and Asia/Pacific appear to be the biggest proponents of succession planning committees, with the majority of recruiters in those regions (63.2% and 53.3% respectively) saying that committees should drive an organisation`s succession planning.
"The situation is even worse when it comes down to looking at a CIO position," added Lesley Mawhinney, Head of the ICT Practice at Leaders Unlimited. "Not only do we have few `true CIOs` in this country, succession planning is virtually non-existent, even though the filling of these positions is often a more difficult task than that for a CEO position."
"Organisations today are looking for CIOs who have the thinking capability of a CEO, the operational capability of a CFO and the delivery capability of a COO," continued Mawhinney, "a rare combination to find."
"Thus, succession planning for either a CEO or CIO is a strategic necessity and also happens to make long-term economic sense," concluded Mawhinney. "The business `hiccup` caused through the failure to have a nominated successor in place can be extremely damaging and exposes the organisation to market risks that are unplanned and can easily be avoided."
For further information, please contact Lesley Mawhinney, Leaders Unlimited: telephone (011) 722 1600, fax (011) 722 1611, e-mail Lmawhinney@leadersunlimited.co.za.
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Leaders Unlimited is a leading global provider of recruitment solutions. Its portfolio of services includes senior-level executive search, specialised skills, middle management recruitment and leadership/management assessment.
Leaders Unlimited`s unique value proposition combines the synergy of many years of experience and expertise in international executive search with extensive regional networks and knowledge of the local business environment. It provides its clients with the highest quality, most innovative and professional counsel and services in a collegial, stimulating work environment.
Leaders Unlimited is the strategic partner for the Africa continent of New York-listed Korn/Ferry International, one of the leading global providers of executive human capital resources.
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