Why succession management is so important to leadership continuity and future enterprise performance; implementing an effective succession planning process; protecting your organization from the risk of management discontinuity.

1. Effective Succession Management
Investing in Leadership Continuity
and Future Performance
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2. Troubling Leadership Transition Statistics
46% of executive departures are unplanned
50% of baby-booming senior managers
baby booming
will reach retirement age in the next
five years
51% of companies do not
have a succession plan in
place
Only 6% of companies have a system
y p y
in place to build “top-flight”
executive teams www.charlesmore.com

3. Why Succession Planning Matters
Management succession is one of the most critical strategic
risks a corporation faces
Failing in leadership transition can
be deadly to even the most
successful of businesses
The faulty integration of a
senior executive can cost a
company 10 to 20 times the
executive’s salary in
opportunity costs
64% of new executives hired from the
outside fail; 40% do so within the first
18 months www.charlesmore.com

4. Effective Succession Planning
Assures that leadership continuity
plans are in place for all key positions
in an organization…
… thereby providing for managed
change in organizational leadership
Allows executive leadership to take a
p
discerning look at leadership
requirements and capabilities, both
now and into the future…
… and build plans of transition,
career development and fill gaps of
consequence
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5. A Model for Effective Succession
Management
Copyright (c) 2012.
Charlesmore Partners
International. All Rights www.charlesmore.com
Reserved.

6. Critical Deliverables
Creates a roadmap for executive
succession and leadership
continuity
Guides development activities of
key executives
Serves to anticipate and manage
issues of responsibility
readiness/career ambition
Avoids transition problems and
premature promotions
Provides the pipeline of
leadership capability necessary to
deliver strategy
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7. Key Components
Key position requirements now and into
requirements,
the future, taking account of likely
organizational architecture shifts
Potential successors (or the lack of) to each
key executive position, together with
development needs, gap assessments and
timelines
Next move readiness assessments so that
opportunities can be identified or
departures anticipated
Actionable plans to prepare current leaders
and high potentials for continuing
performance improvement, capability
development and future career opportunity
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8. Actionable Insights
Succession matches. Situations where the timing of a leaders readiness for
leaders’
new responsibilities coincide with the timing of a successor’s readiness.
Incumbent restrained. Situations where a leader is ready for new
responsibilities, but no successor is as yet identified.
Succession mismatches. Situations where a leader is ready for new
responsibilities, but no successor is ready.
Blocked potential. Situations where a leader is ready for new responsibilities,
p y p ,
but the incumbent in the next-level position is not ready/likely to move on for
2 – 3 years or longer.
Valued leader at risk. Situations where more than one successor is identified.
The
Th unsuccessful candidate will b at risk of l
f l did ill be i k f leaving unless alternatives are
i l l i
found.
Organization at risk. Situations where no successor is present and corrective
action is either a priority or simply judicious.
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9. Tangible Results
Puts in place strategies and plans for leadership continuity
and succession
Defines and personalizes leadership developmental priorities
and investment
Motivates leadership performance and retention
Anticipates and smoothes leadership
transitions
Mitigates the risk of leadership
discontinuity
Builds ongoing leadership and
enterprise capability
Strengthens stakeholder confidence
g
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10. More Information
+1.215.353.6472 ♦ www.charlesmore.com ♦ connect@charlesmore.com
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