Failure to succession plan may result in business demise
The cost of replacing Key Talent, particularly those in C –suite roles, is assumed to be the equivalent of between six months and two years annual remuneration (if you are lucky). This is without mentioning the negative impact on business performance that results from a lack of formalised succession planning. Given that it takes most organisations an average of two years to identify, on board, appoint and acclimatise a suitable successor, businesses need to consciously invest in developing succession plans to ensure business continuity, effective transfer of knowledge and retention of institutional memory.
Transformation, whether organisational, diversity driven, or to meet changing client demands requires effective leadership. The most effective leaders are those who have been identified and groomed to take up these roles within the organisation.
A recent article that talks about the flurry of top executives resigning in South Africa organisations highlighted the need for businesses to ask themselves if they have conducted systematic talent analysis and risk assessments that would provide an effective capacity building plan. To ensure long-term survival and sustainable growth, succession planning is essential in any organisation.
Mindcor ensures that they assist organisations in identifying talent and developing a strategically aligned succession plan, ensuring our clients have access to top talent whilst saving against long term costs.