Diversity MBA Magazine - Fall 2008 - (Page 38)

It’s commonly understood that one of the essential missions of a forward-thinking company is to preserve the corporate integrity, leadership capability, and financial resourcefulness of the organization in the event something unforeseen happens to one or more key executives. This is why, in firms of all sizes, it’s important to have “key-man insurance” in place, as well as other legal and financial instruments to maintain the continuation and well-being of the corporation. A consulting firm specializing in corporate succession planning (CSP) points out the elements of planning analysis that are especially beneficial for familyowned businesses: Business objectives, family dynamics/ objectives, owner/manager estate plans, key-employee compensation, business valuation, transition financing, tax planning, estate liquidity, active/inactive family-member issues, and senior-generation retirement security. Larger corporations also often consider themselves to be a family. But just like human families, they run the risk of being ill prepared to handle the many contingent circumstances that can jeopardize the well-being of the organization and threaten its very existence. “Approximately 80% of today’s privately-held companies will not survive to the next generation of same-family ownership,” says Peter Handal, president/CEO/chairman of Dale Carnegie Training. “The failure to establish a comprehensive succession plan is a leading cause of this phenomenon. Every successful privately held business needs a corporate succession plan. Even if the business is young, or the next generation has not stepped forward, a succession plan should be implemented in order to avoid the hardships of an unplanned transition or worse, a government-dictated disposition. A good corporate succession plan is “Amid the twofold pressure of pending retirement in senior executive ranks and the increasing value of intellectual capital and knowledge management, it is more necessary than ever before for organizations to plan for leadership continuity and employee advancement at all levels.” -- William Rothwell, Corporate Succession Planning Corporate Succession Planning – How Do You Fit In? By Calvin Bruce, M.A. flexible, and changes as the circumstances of the business and its owners change.” From another vantage point, CSP isn’t merely a proactive means to hedge against major loss by identifying key management figures that can fill any gap in executive leadership that occurs due to death, illness or unexpected departure of someone in the “C” suite (CEO, CMO, CFO, etc.). “Successful companies are certainly looking for corporate succession plans for the C-suite, but they’re also ensuring they have formal programs in place for critical roles within the organization,” says Julie Norquist Roy, vice-president of marketing at Cornerstone Ondemand, a firm that provides solutions for companies concerning matters such as employee learning, performance, and succession planning. An example she gives is project managers at engineering firms: “They’re often responsible for overseeing multi-million or billion-dollar projects. Retaining and engaging these key people would be critical to the success of the bottom line.” In point of fact, CSP can be viewed as an ongoing, proactive program to develop internal talent by grooming key players at all levels to achieve peak productivity, prepare for more challenging roles, and continually prove their worth to the organization. Those who do so capably and enthusiastically will be noticed and considered for w w w. d ive r s it y mb a ma g a z in e. c o m 38 http://www.diversitymbamagazine.com

Table of Contents Feed for the Digital Edition of Diversity MBA Magazine - Fall 2008

Diversity MBA Magazine - Fall 2008 Contents Letters to the Editor In Your Own Hands Editor's View Business Briefs Off the Shelf Diversity MBA 2008 Awards Gala and Leadership Forum "Diversity Next Practices" Illusion of Inclusion Good Is Not Enough Revisiting Your Personal Brand Discover Your Power Voice Authentic Leadership In An Ever-Changing Marketplace Stopping the Brain Drain: How Companies Can Keep Talented People of Color Corporate Succession Planning - How Do You Fit In? How To Manage Virtual Teams Beyond Demographics Recruit, Recognize, Retain, Reinvest – Winning the Talent Acquisition Game Leave Ego at the Door Modernizing Supplier Diversity Taking the Leadership High Road… When You Can Find It Think Boardroom Bound; It’s Happening Who's Who In Diversity Fail to Succeed 4-Star Start-Up, Chris Ward: Character Above All Get Them at Hello – Tips to Improve Your Marketing Kit Sonny Vu, Entrepreneur A World at Your Fingertips Big Brother Wants Your Bank Account Stepping Off The Corporate Ladder HR Focus with Monica Ross A Unique New England Vacation Bold Caballeros y Noble Bandidas Women of Color and Cancer: The Chicago Phenomenon Being Single Isn't Easy International MBAs Flock To U.S. Schools Smart Strategy Gadgets+Gizmos Advertiser's Index

Diversity MBA Magazine - Fall 2008

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