The Three Components Of Effective Succession Planning

Succession planning is not a contingency exercise reserved for leadership emergencies. It is an operational readiness practice designed to manage organizational performance and risk. Poor succession planning shows up in cash flow, operations, payer confidence, and staff retention. Boards and chief executive officers (CEOs) need to understand that this connection is direct.

Organizations should not look at succession planning only when a top executive announces a retirement, submits a resignation, or a crisis forces rapid leadership change. Because leadership roles carry strategic consequences, organizations need a succession plan that is either ready to go or continuously being refined so they . . .