Can you replace them?
Companies need a succession plan, just like people need a will
HAVE you ever been in a room full of friends, colleagues or family where you were confronted by the question: "Do you have a personal will?"
What was your answer? If you replied no, then why not? Although you've probably experienced a lot of discomfort, remember, you aren't immortal and you aren't bulletproof. Let's face it, things happen.
Things happen in the business world too. And guess what? Just like many individuals without a personal will, many companies often haven't prepared themselves very well, either. In fact, a 1996 study of human resource professionals found that only 40 per cent of firms had any kind of "corporate will" or succession plan that enabled them to deal with the unexpected departure of a key executive. More than 60 per cent failed to have any kind of succession planning process. On the Canadian scene, a recent study of 1,000 small and medium-size entrepreneurial businesses by BDO Dunwoody and COMPASS Research indicated only 44 per cent had an exit strategy and only 24 per cent had selected a successor.
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By Barbara Bowes
