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.