The majority of companies today do a haphazard job of identifying and developing successors for key positions. A survey of more than 500 human resources professionals conducted by RHR International revealed that succession planning is neglected or done poorly by most. Less than one-quarter of the respondents said their company has a well-developed management succession system. Less than one-third said their organizations link succession planning to strategic business needs. And slightly more than one-third incorporate succession planning as part of a broader management development effort. Almost half the respondents said their companies are not prepared to replace key executives when faced with a sudden departure.
The fact is, not preparing for the inevitable exposes a company to significant risk. And, after all, everyone will eventually leave a job, whether through natural progression or unusual occurrence. Succession planning, therefore, should be systematic, ongoing and practiced throughout the company, especially for critical senior management positions.