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Early retirements, down-sizing and short-term maximization of profits have dire side effects - there aren't enough middle managers in the wings ready to take the lead. Many companies who face the decision of whether to “make or buy” their next generation of leaders, are finding that there aren't a lot of ready-made leaders on the market at any price.
According to a McKinsey study, the war for top talent will be fierce, affecting companies and industries new and old. The time for action is now—before top leaders have retired or been recruited away.
Without succession planning, production suffers because key positions take too long to fill, and high-potential candidates often leave the organization. Matt Paese, practice leader of executive development at DDI says “Seventy-five percent of executives are currently marketing themselves in some active way.” In times of down-sizing, mergers and acquisitions, the risk of losing top talent is even higher. Companies with foresight prepare their next crop of leaders, which keeps morale high, reduces turnover, preserves excellent performance and assures continuity of leadership.
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People are known by the company they keep. Companies are known by the people they keep.
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