ABSTRACT
Succession planning has become more imperative than ever because great leaders are scarce and competition for them is strong and almost vicious. The turnover rate of business leaders is so high, particularly among chief executive officers (CEOs) that organizations which do not plan for succession may face a crisis when they lose their executives unexpectedly. According to Paese (2008, 19), ‘over the last decade, CEO turnover has increased by over 50 per cent, and performance-related departures by over 300 per cent.’ Many organizations recognize the gravity of the situation. Research conducted by the Society for Human Resource Management (SHRM) Foundation in 2007 revealed that three out of four executives in the United States said that succession planning was their most significant challenge for the future. Furthermore, about 71 per cent of the respondents also said that the next most pressing problem was providing leaders with the skills they needed to be successful. Paradoxically, few organizations seem to be taking appropriate actions towards addressing these challenges.
