There are many reasons for leader transition – new position, retirement, promotion, development, and unfortunately death. The majority of transitions create significant challenges for business continuity, financial stability, and business growth.
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 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 that the financial costs to the businesses if the transition failed were significant – from tens of thousands to more than $3 million dollars.
Here are some questions to consider regarding your current situation:
- How prepared are you to manage the leader transitions in your business?
- How much risk is there for your business if you were to lose key leaders?
- How urgent is it for you to have a plan to successfully transition your leader?
- What might prevent you from putting a plan in place to support your transitioning leaders?
- What can you do today to prepare?
Find out more about the risks of leader transitions at the ‘Leader Transition Is Risky Business’ Lunch and Learn, January 27, 2021. Register Now