According to a recent Korn Ferry (NYSE: KFY) survey of C-suite
executives in companies across the globe, there is a shortfall
issue, with 77 percent of respondents saying there is not an
internal ready-now successor for their role.
Korn Ferry surveyed executives across several C-suite roles,
including CEOs, CFOs, CHROs, CMOs and CTOs. Nearly half (42
percent) of respondents say their organization does not have a
comprehensive succession plan for their role.
“Often organizations are so busy trying to outpace the
competition and provide value for customers and shareholders that
they don’t take the time needed to plan for the future,” said John
Petzold, Korn Ferry senior client partner and leader of the firm’s
CXO Optimization Practice. “An exodus of a senior leader could be
unplanned and swift, which could leave organizations vulnerable if
a ready-now successor isn’t already identified and developed.”
Following is a breakdown of results by role:
Role Percent who say there’s not a
ready-now successor for their role Percent who
say there is a comprehensive succession plan for their role CEO
76 Percent 40 Percent CFO
80 Percent 38 Percent CTO 71 Percent
41 Percent CMO 84 Percent
41 Percent CHRO 76 Percent 52 Percent
Chief Executive Officers (CEOs)
Of the 222 CEOs who participated in the Pulse Survey, 76 percent
say there is not a ready-now successor for their role, and only 40
percent believe there is a comprehensive succession plan for their
position.
“Identifying and developing a CEO who can drive performance and
transformation doesn’t happen overnight. It requires companies to
move from just-in-time transition planning to ongoing progression
planning,” said Jane Stevenson, global leader of Korn Ferry’s CEO
Succession Services. “As soon as a new CEO takes the helm, he or
she, along with the Board, should begin the process of creating a
plan to identify and develop not only the next company head, but a
team for future success options for key senior leadership
positions.”
Chief Financial Officers (CFOs)
The 2019 CFO Pulse Survey of 222 chief financial officers found
that, when planning for a successor, only 38 percent of CFOs
believe they have a comprehensive succession plan, and 80 percent
do not feel there is a ready-now successor for their role.
“The number of CFOs who don’t feel they have a formal succession
plan or a direct report ready to replace them now should raise
concern. And yet, despite the lack of perceived readiness,
approximately 60 percent of appointed CFOs are still sourced
internally,” says Bryan Proctor, senior client partner and Global
Financial Officers practice lead at Korn Ferry. “It’s critical for
organizations to understand their talent balance sheet, have a
pipeline of potential leaders, and develop a thoughtful succession
strategy that provides transparency on potential and offers
experiences necessary to fully prepare CFO successors.”
Chief Technology Officers (CTOs)
The Korn Ferry Technology Officer Pulse Survey of 194 technology
officers found that 71 percent say they do not feel there is an
internal ready-now successor for their role. In addition, 41
percent of technology officers do not feel they have a
comprehensive succession plan.
“Technology officers are increasingly becoming an integral part
of the C-suite and essential to an organization’s business
success,” says Craig Stephenson, managing director of Korn Ferry’s
North American Technology Officers practice. “It’s critical that
organizations identify and develop a strong pipeline of successors
across the technology function. It is an important aspect to ensure
the rapidly evolving technology function continues to play an even
greater role in helping organizations set and execute their
business strategy.”
Chief Marketing Officers (CMOs)
Korn Ferry’s survey of more than 200 marketing leaders found
there is a looming leadership crisis facing the function, with 84
percent of CMO respondents saying there is not an internal
ready-now successor for their role and only 41 percent believing
there is a comprehensive succession plan. Compounding those issues
of lack of successorship is the historically short tenure of
CMOs.
The survey also found that 41 percent of CMOs see strategic
thinking as the top capability gap they are focused on developing
in their direct reports.
“Given the proliferation of specialists in the marketing
function, and the fact that there is not often enough focus on
developing those specialists into strategic generalists, is likely
why strategic thinking is a gap and is one of the reasons there is
a challenge finding successors in the ranks,” said Caren Fleit,
managing director, Korn Ferry Global Marketing Officers
Practice.
Chief Human Resources Officers (CHROs)
The 2019 CHRO Pulse Survey of 193 chief human resources officers
found that CHROs are concerned about who will succeed them, with 76
percent of respondents saying they do not feel there is an internal
ready-now successor for their role, and only about half (52
percent) reporting they have a comprehensive succession plan. In
addition, when asked about the capability gap that they are most
focused on developing in their direct reports, 44 percent said
strategic thinking.
“Grooming CHRO successors is a difficult challenge, because the
greatest skill gaps we see in potential successors—board exposure,
managing the compensation committee relationship, and executive
compensation knowledge—are also the most difficult areas for a CHRO
to delegate,” says Joseph McCabe, vice chair of Korn Ferry’s Global
Human Resources Center of Expertise.
About the Survey – The global Korn Ferry survey included
responses from nearly 900 chief executive officers (CEOs), chief
financial officers (CFOs), chief technology officers (CTOs), chief
marketing officers (CMOs) and chief human resource officers
(CHROs).
About Korn Ferry
Korn Ferry is a global organizational consulting firm. We help
clients synchronize strategy and talent to drive superior
performance. We work with organizations to design their structures,
roles, and responsibilities. We help them hire the right people to
bring their strategy to life. And we advise them on how to reward,
develop, and motivate their people.
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Tracy Kurschner612.309.3957Tracy.Kurschner@kornferry.com
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