Benefits for the Organisation The most obvious benefit lies in the reduction of high-stakes placements and the subsequent cost entailed by misjudged hires. Executive level mishiring carries a substantial financial burden, estimated at a staggering up to 30 times the executive’s salary. Research by the Corporate Executive Board (CEB) further demonstrates that successful CEO transitions forecast a remarkable outcome: 90% of leadership team members led by CEOs who navigated successful transitions go on to achieve their three-year performance objectives. Within these teams, attrition risks decline by 13% compared to counterparts. A prosperous transition signifies the organisation’s skilled utilisation of the CEO’s unique talents and potential, serving as a potent testament of its commitment to executive development. Furthermore, when a new CEO is tasked with reshaping the organisational culture, a structured transition facilitated by an executive transition coach proves instrumental in fostering the adoption of a new, supportive organisational culture and leadership ethos. It also lowers organisational mistrust by sending a signal of proactive and thoughtful leadership. Benefits for the Stakeholders The RBL Group, a prominent human resources consulting firm, unveiled compelling findings in their ‘Leadership Gap’ study, surveying 430 portfolio managers and institutional investors. This research underscored the top three investment criteria: company performance (38.5%), industry favourableness (33.1%), and leadership quality (28.4%). Notably, the study also assessed the confidence levels of the same investors in evaluating these criteria. the risk of derailment by as much as 50% (Wheeler 2009). An orchestrated and supported CEO transition simultaneously mitigates critical transition hurdles and associated perils, resulting in heightened role satisfaction for the CEO. Equally noteworthy is the rapid attainment of baseline productivity levels, a phenomenon welldocumented in numerous studies. These findings underscore an accelerated transition, often up to 50% faster than peers who lack structured transition support. Moreover, it becomes evident that fruitful CEO transitions yield dividends in uncharted territories, such as propelling the CEO towards an enhanced likelihood of an internal or an external promotion following one or more successful transitions. a meticulously structured CEO transition process, often bolstered by external support. This process leverages internal resources and deploys innovative tools and systemic approaches to guide the newly appointed CEO through an impactful transition. Extensive research has diligently probed the advantages of effective onboarding and executive transitions, typically concentrating on the benefits accruing to the transitioning CEO. However, the advantages extend across three distinct stakeholder groups, each warranting detailed exploration. Benefits for the CEO A successful transition has been empirically demonstrated to curtail CEO Today Executive Coaching Awards 2023 - GLOBAL - - 10 -
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