Firms ignore succession risks

first_imgFirms ignore succession risksOn 28 Jan 2003 in Personnel Today Comments are closed. Related posts:No related photos. Too many UK organisations are putting the future of their business at riskby ignoring clear succession planning, warns a Work Foundation report. According to its survey of nearly 200 HR professionals, only a quarter identifyand groom internal candidates as successors for senior posts. And nine out of 10 respondents report they would not have a suitableinternal candidate to take over if a key member of staff left. The study also reveals that employers are doing little to try and addressthe white male bias within their senior management tier. Four out of 10organisations do not monitor for sex or ethnic discrimination. Patrick Burns, director of advocacy at the Work Foundation, was disappointedthat so many organisations do not have clear and comprehensive successionplanning policies in place. He said: “Succession planning is a key element of disaster planning. Ifa senior person leaves suddenly, and there is no obvious successor, the firm’sshare price and competitive advantage can be irrevocably damaged.” He added that demographics provide another compelling reason for improvedsuccession planning, with half of all senior posts predicted to become vacantin the next five years as the baby boomer generation retires. Only 13 per cent of organisations have a clear succession plan linked tostrategy, although 78 per cent expect to make it a high priority in the nexttwo to three years. Respondents list honesty, effective communication, encouraging teamwork andstrong interpersonal skills as the senior management skills they most value. By Ben Willmottwww.theworkfoundation.com Previous Article Next Articlelast_img read more