Durham, N.C. (Sept. 6, 2002) -- While many companies commit to succession planning, few follow through with the necessary rigorous implementation, according to a report by research firm Cutting Edge Information.
According to the report, "Succession Planning for Results," 45 percent of the largest companies' boards have no meaningful CEO succession planning process. A summary of the 76-page report is available online at http://www.cuttingedgeinfo.com/FLReports/FL52_Succession_Planning.htm.
The report highlights Five Principles for Succession Planning:
- Build a comprehensive succession plan at multiple levels. Move beyond simply thinking about a succession plan and actually begin building one.
- Execute the succession plan with discipline. According to the report, organizations generally fail at succession planning because they prize short-term gains over long-term growth. Incorporate succession planning into all aspects of the business.
- Ensure that top officers are covered by the succession planning process. Cutting Edge Information reported that less than 30 percent of public companies’ boards even conduct formal written reviews of their CEOs.
- Conduct 360-degree reviews of succession planning candidates, which gather information from an individual’s superiors, peers and subordinates.
- Build an "academy company." The most advanced leadership development and succession planning companies are known as "academy companies." General Electric is the classic academy company, according to the report.
-- Electronic Accountant Newswire staff
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