Leadership succession planning "affects commercial success": Chief executives crucial to developing high-potential employees

Author：

Publisher： Emerald Group Publishing Ltd

ISSN： 0967-0734

Source： Human Resource Management International Digest, Vol.13, Iss.1, 2005-01, pp. : 36-38

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Abstract

Purpose - To help organizations to identify and develop future leaders, to highlight good and bad practices in development, to specify areas for improvement and to build on previous research in this area. Design/methodology/approach - The article is based on a survey of 115 respondents - 46 percent of whom report an annual turnover in excess of $1 billion - from 19 industries. About 90 percent of respondents are based in the US, with the remainder being located in the UK, France, The Netherlands, Switzerland, Canada, Russia and central and eastern Europe. Findings - Careful planning for leadership succession at major organizations has a significant impact on their commercial success. Conversely, there is a corresponding significant negative correlation between an organization's need to hire outside leaders and its confidence to meet future growth needs. Practical implications - Chief executives and other senior managers need to commit time and energy to on-the-spot development of high-potential individuals. Originality/value - The article is of value to organizations seeking to identify and nurture talented employees for future leadership positions.