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Leadership transition management increases performance

Posted on November 27th, 2012 Read time: 1 minutes

Successful leadership transition management helps boosts businesses' financial performance and competitive edge in the hiring process, according to a recent study.

Advisory company CEB found that companies using innovative approaches to transition management don't just focus on the incoming leader. They also work extensively to prepare existing employees and colleagues. According to CEB, these tactics lessen organizational paralysis and employee attrition while increasing employment value proposition and reputation for integrating new leaders.

CEB compiled data from more than 30,000 company leaders, including HR administration heads. The company found at least 90 percent of organizations led by well-supported, high-performing transitioning leaders met their three-year performance goals.

Meanwhile, companies that don't manage transitions as efficiently experience much less success, as nearly half of their leaders underperform during organization head changes.

"A macro-environment of high expectations means leadership transitions now occur in greater numbers than ever before – and with high stakes for all involved," said Steve Meyer, CEB general manager. "The most progressive companies have begun to establish more rigorous and repeatable processes to address leadership transition management."

HR services can lead companies through successful transitions by tailoring to the demands of each leadership change, rather than viewing them as identical processes. It's also a good idea to remember the organization's community should be at the center of all transition activities.

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