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Chief executives crucial to developing high-potential employees
Keywords:
Succession planning, Management development, Senior managers, Chief executives
Careful planning for leadership succession at major organizations has a significant impact on their commercial success.
Research entitled Practices in Developing Future Leaders reveals that there is a "significant, positive correlation" between an organization's ability to develop senior executives internally and its confidence in its ability to meet future growth needs.
The research, by global management-psychology firm RHR International, indicates that organizations with a good selection of highly able executives who are definitely senior-management material are frequently the organizations that also have a strong, well-organized program to develop high-potential employees.
The two activities that have the greatest impact in developing these high-potential employees are developmental "stretch" assignments within a company, and the personal involvement of the chief executive.
Dr Robert Kovach, managing director of the UK office of RHR International, said: "Many organizations appear to underestimate the importance of the role of the chief executive in developing a high-potential employee. Another problem is that it is not until stock prices are falling because of a gap in senior-management succession that organizations realize how important a good reserve of quality potential senior managers is to their bottom line".
The survey also reveals a corresponding significant negative correlation between an organization's need to hire outside leaders and its confidence to meet future growth needs.
How to identify and nurture talented employees
The survey highlights what respondents consider the most effective methods of identifying and nurturing talented employees who have leadership potential. The most effective techniques are considered to be:
* defining leadership abilities based on the strategic challenges confronting the organization;
* one-on-one...