New York Stock exchange problems highlight the need for good succession planning

The New York Stock Exchange's recent leadership crisis stems in part from succession planning failures within its own governance board, according to Cutting Edge Information. Though the board includes some of the county's leading executives, breakdowns in top-level leadership development do not surprise HR experts - only 25 percent of top level companies include formal exit plans for CEOs, and 45 percent of companies that generate $500 million in sales each year never mention the CEO's role in a succession plan.

Progressive companies integrate straightforward succession planning into their corporate growth plans. These forward-thinking companies consider succession planning a strategic tool that aids in growth and personnel transitions while creating principled leadership.

A report from Cutting Edge Information, ‘Succession Planning for Results,’ examines companies with good succession plans to show how businesses transition between each generation of leaders.

"Leading companies manage succession plan implementation as an on going challenge that begins with employee assessments," said Cutting Edge Information's CEO Jason Richardson. "Knowing employee strengths positions companies to communicate and roll out plans for long-term success at all levels."

The key elements to consider when developing and managing a succession plan include:
* Identify corporate priorities and values for leadership development
* Build a succession plan that addresses all organisational needs
* Execute the succession plan with discipline and ongoing commitment
* Focus on top officers to build talented, ethical company leadership
* Conduct in-depth personnel reviews to promote employee development.

•Date: 3rd October 2003 •Region: N.America/World •Type: Article •Topic: BC general
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