Few events carry greater risk to shareholder value than a change of leadership. So why do so many boards have an ineffective succession planning process or – even worse – no process at all for finding and preparing the next generation of leaders?
Our Succession Management team provides world-class companies across all industry sectors with objective, evidence-based management practices to help ensure the right leaders are ready, when and where they are needed – now and in the future.
Why companies struggle with succession management.
Securing a smooth succession for CEO and board-level roles is more than good governance; it’s sound business sense. That’s why the expectation among shareholders, regulators, financial analysts, and others is that boards will plan for it effectively. But in reality, very few do.
We have identified the two most common stumbling blocks:
- A lack of agreement on strategic direction: discussions about future business leaders will stall if everyone on the board has a different perspective on the future of the business.
- A lack of a coherent formal process for evaluating internal and external talent, or for linking the competencies and capabilities needed by the CEO to drive the business strategy.
A complete view of talent
A proper succession strategy extends beyond the C-suite. Our approach creates a more complete view of the internal and external pipeline, and reveal how the organization’s succession planning is—or is not—producing the leaders it needs. We then help clarify, enhance, design, and build a more sustainable process.
Korn Ferry analytical tools provide the macro level view of the talent supply to give organizations insight into whether they have the talent they need to fuel growth and drive business performance, and identify any weak spots in the future leadership pipeline.