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Organizations routinely spend thousands of dollars in recruitment / executive search fees, intent upon finding the perfect candidate. Yet far fewer do enough, if anything, to maximize the return on that investment by thoughtfully planning for a successful transition. Best practice organizations address this issue and create competitive advantage with transition plans designed to quickly and efficiently ramp up new leaders to full productivity. The stakes are high and the odds are uninspiring. A commonly cited statistic is that turnover among newly hired executives within the first three years of taking a new job is as high as 50%. (1) Reducing that rate even by half is fertile ground when you consider the costs of filling an executive position, often cited as at least a full year’s salary. In his highly acclaimed book, “The First 90 Days,” Michael Watkins introduces the concept of a breakeven point, the point at which new leaders have contributed as much value to their new organizations as they have consumed from it. Initially, new leaders are net consumers of value; as they learn and begin to take action, they begin to create value. Hopefully, from the breakeven point forward, they are net contributors of value to the organization. (2)

As companies reimagine what the future of work requires, meaningful succession planning is a competitive differentiator.

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