Leader Transitions: From Risky Business to Uncovering Opportunities

A change in leadership is a time of flux and change for everyone – the leader and the team. These transitions create potential risks at every level of the organization and profitability, productivity and morale can be negatively affected. In fact, research has shown that nearly 50% of leader transitions fail.

It is crucial that businesses look at decreasing and preventing key challenges leaders in transition are facing.

Leader transition research conducted by Kathleen Ozmun and Marielle Gauthier, found a number of opportunities to ultimately lower the risks, increase productivity and quality of work, and foster better stakeholder relationships, all of which impact the bottom line.

Businesses that enhance their support for these transitions position themselves to gain benefits such as:

  • Reduce risks and costs
  • More resilience as a business
  • Business continuity
  • Maintain revenue stream
  • Better relationships with key stakeholders
  • An engaged and informed workforce
  • Maintain productivity and high quality work
  • Consistent excellent customer service
  • Smoother organizational changes

Gauthier and Ozmun recommend a comprehensive multi-faceted approach for a successful business leader transition. Initial actions as a starting point are:

  • Create a leader transition support team to accelerate role effectiveness
  • Equip leaders to nurture and build strong stakeholder relationships
  • Develop a cross-training program aimed at building the skills of employees in the company

These articles will help you assess your current business situation, the risks and impacts of your leader transitions, and ways to support leaders in transition.

Find out more about the risks of leader transitions and actions to take at the free ‘Leader Transition Is Risky Business’ Lunch and Learn, January 27, 2021.

Register Now.

 

Unsupported Leader Transitions: A High Stakes Game

The struggles faced by leaders in transition have immense impact on the business. These struggles can reduce the productivity, performance and engagement of the new leader which can ripple out into the organization. This can potentially jeopardize whole programs and services.

Businesses with leaders in transition must be vigilant to identify issues which can impact productivity, morale, relationships, performance and revenue. A focused effort to manage and correct will be required.

Based on our experience and current leadership research, we strongly believe that leadership development supports leaders and their organizations to be more successful.

According to the Center for Creative Leadership, substantial investments in leadership development drive performance and gain competitive advantage in four ways:

  1. better financial performance
  2. better talent management
  3. improved strategy execution and
  4. better change management.

Risks are created as leaders struggle and the stakes are high. If struggles are not addressed, there will continue to be risks to the business.

Here are some questions to help you think about ways to support your leaders in transition:

  • What are your leaders struggling with?
  • What do you have in place to support them?
  • How are you setting up the leader and their team for success?
  • How do you help your leaders quickly develop their skills?
  • How do you help your leaders learn to manage and influence the organization?

For further questions to assess your current business situation and the risks and impacts of your leader transitions.

Find out more about the risks of leader transitions at the free ‘Leader Transition Is Risky Business’ Lunch and Learn, January 27, 2021.

Register today.

 

Leader Transition Impacts: Too Big to Ignore

A change in leadership is a time of flux and change for everyone – the leader and the team.

This leadership transition is really two events in one and each of these events can be challenging. The first event is the transfer of responsibilities including key initiatives and stakeholder relationships from the previous leader to the new leader.

The second event is the new leader establishing an effective leadership style, fostering new relationships and developing value-creating strategies in their new role and with their new teams.

These transitions create potential risks at every level of the organization and profitability, productivity and positivity can be negatively affected. In fact, research has shown that nearly 50% of leader transitions fail.

Leader transition research conducted by Kathleen Ozmun and Marielle Gauthier, found a number of serious risks that can impact your business operations. These risks and impacts include:

  • interruption of business and service
  • financial cost increases and revenue loss
  • staffing challenges
  • work relationship difficulties
  • under-resourced leadership development
  • uncertainty about transition timing and process and
  • the inability to engage in strategic thinking and planning.

Here are some questions to consider the risks and impacts of your leader transitions:

  • What are potential risks for your business?
  • What may interrupt your business and service?
  • What costs may not be factored into the transition process?
  • What key messages do you need to send about the leader transition? To whom?
  • How will you maintain strong relationships with stakeholders throughout the leader transition?

For questions to assess your current situation, read our article on Leader Transition is Risky Business.

Find out more about the risks of leader transitions at the ‘Leader Transition Is Risky Business’ Lunch and Learn, January 27, 2021.

Register Today.