In business, succession planning isn’t just about the unknown and unforeseen. After all, retirements generally arrive with plenty of advance notice. It’s also not confined to the top levels.
While 70% of C-suite executives in a Deloitte survey are “seriously considering quitting,” a Society of Human Resource Management (SHRM) report shows only 21% of organizations have a succession plan in place.
Worse, while Forbes found 9.6% of CEOs left their position in 2021 — most likely stayed to guide their organizations through the COVID-19 pandemic — executive resignation has rapidly risen throughout 2022. According to Harvard Law School, CEO succession has risen to nearly 12% among companies listed in the S&P 500 and Russell 3000 as of July 2022.
Even those of us who didn’t ace math can see the potential problem waiting to become a full-blown catastrophe.
As Bridgewater Associates founder Ray Dalio noted, “Any organization run by a 60-plus-year-old that says it isn’t in transition is either naive or disingenuous.”
Where does your business stand?