Increasing Focus on Leadership Development and Succession Management.

Brandon Hall Group’s Study, 2015 State of Succession Management Survey, based upon a survey conducted between December 2014 and February 2015 completed by 164 executives, chief human resources officers, vice presidents of talent, and other business leaders representing 24 countries from all significant global regions across 29 industries, Key Findings:

  • 84% of respondents suffer from an unhealthy talent pipeline.
  • At least half of those respondents recognize the business impact of a weak pipeline and plan to formalize a succession management strategy across all parts of the business as an imminent succession management priority over the next 12 months.
  • Organizations are starting to step up to defining and implementing succession management that includes a focus on all leader levels.
  • 52% are prioritizing employee development today and more than 68% plan to prioritize it over the next 12 months.
  • Organizations cite leadership development as the number one talent differentiator and they acknowledge the critical link between preparing leaders and having them ready to assume next-level roles.


Additionally, anecdotal evidence suggests that formalized leadership succession plans are being requested by lenders and financial buyers of businesses to minimize the risk to enterprise value in the event of an unforeseen or unplanned for transition event.


THE ROI:

Financially Outperform the competition.

  • Organizations with high levels of leadership quality and leader engagement/retention are 9x more likely to outperform their peers financially.
  • Organizations with higher leader quality were 6x more likely to be among the top 20 financial performers of all organizations.


                      Source:  Global Forecast; Ready-Now Leaders:  Meeting Tomorrow’s Manufacturing Talent Challenges, The Conference Board DDI                                       2014/2015 report.

                      http://www.ddiworld.com/resources/library/trend-research/global-leadership-forecast-2015

  • Organizations with leadership transition programs are more likely to financially outperform organizations without such programs and be in the top 20% of financially performing organizations.


                  Source:  Development Dimensions International survey results.

                 http://images.insight.ddiworld.com/Web/DDI/



“As the data pours in about the undeniable role of succession management in helping organizations achieve significant business targets, organizations are planning to invest more time, money, and headcount to help ensure their approach to succession management builds the talent skill and know-how necessary to lead into the future and outpace the competition.”

- Brandon Hall Group’s Study, id.


©2015 by Adaptive Knowledge Institute.  All Rights Reserved.

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