<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=456359911403087&amp;ev=PageView&amp;noscript=1">
Many Businesses Don't Have a Succession Plan Blog Feature

By: America's Credit Union on February 22nd, 2019

Print/Save as PDF

Many Businesses Don't Have a Succession Plan

Insider | Life

Change management is always a major concern for organizations, but few challenges are more disruptive than an executive departure.

In a new survey from Robert Half Management Resources, only 52 percent of chief financial officers said they have identified a successor for their position.

The research suggests small businesses (20-49 employees), in particular, may be less prepared to deal with potential leadership changes, with only 37 percent of financial executives at those companies citing they have an heir apparent.

Robert Half Management Resources identifies the potential pitfalls for organizations that lack a succession plan:

  • Business disruption — Productivity and operational efficiency are at risk without a contingency plan. An orderly succession ensures that a leadership departure remains a manageable event rather than an organizational crisis.
  • Legacy loss — A company that doesn't engage in executive mentoring and knowledge-sharing can struggle with retention and potentially lose institutional expertise.
  • Strategy standstill — High-level executive absences and departures can put strategic decision making on hold and impact long-term projects and initiatives.
  • Succession ambiguity— The lack of a defined advancement protocol can hinder internal promotions and undermine organizational confidence, impacting everyone from the CFO aspiring to a CEO role to executives and staff throughout a company.
  • Protracted leadership void — Companies faced with an unplanned departure frequently appoint an interim leader to fill the gap while a search is conducted, but it's prudent for executives to anticipate such circumstances to ensure a smooth transition and graceful exit from the role.

 

Get Yours Now!

 

Membership in America’s Credit Union is open to anyone who lives or works in Dallas, Rockwall or Collin Counties, Texas, and their family members. Employees of select employers may also be eligible. See our Membership page for details.