Global survey demonstrates the importance of succession planning

Other succession planning missteps identified by recruiters were no formal evaluation process (27.4 percent), subjectivity in selecting internal candidates (17.4 percent), no buy-in from the board of directors (3.5 percent) and position specifications that are too rigid (2 percent).

When asked what percentage of organizations today have a capable CEO-in-waiting should the current CEO unexpectedly depart, the majority of recruiters (60.8 percent) answered "40 percent or less."When asked what percentage of organizations have a capable CEO-in-waiting, fewer than half (48.9 percent) answered "40 percent or less."

"Succession planning is one of the major yardsticks of a Chief Executive Officer's success. Said Metin Mitchell, Managing Director of Korn/Ferry International, Middle East. "Ideally an organisation should grow the next generation of leaders internally. And when it has to go outside it should do so with a view to acquiring a well-defined competency or set of experiences."

"Appointing an external CEO can be highly desirable when the organisation has identified that it needs specific bench mark talent. In the case of the Middle East, there can be a compelling case to bring in someone from a mature market, assuming that he has the personality traits necessary to be effective in the Middle East," added Mitchell.

The survey also looked at who should drive an organization's succession planning. The most common response was a succession planning committee of the board of directors (42.8 percent). The next most common response was the board of directors (41.3 percent), followed by the incumbent CEO (11.4 percent).

Methodology
The Executive Recruiter Index is based on a quarterly survey of 201 Korn/Ferry International consultants, who serve the world's largest corporations and not-for-profit organizations. This survey was conducted online within the Americas, Europe, Asia/Pacific and Middle East & Africa between April 6 and April 22, 2005.