Your leadership legacy matters. It motivates people in the way they think and behave, today, and in the future. Lasting legacies set a course: they add value, create positive meaning, and empower others to carry on—with or without you.
I’ve been thinking about this recently. Maybe it’s the change of seasons: our last push into fourth quarter, planning for our future. For some cultures, it’s a time to honor those who have gone before us. Did you know that the early American celebrations of Halloween included sharing stories of those who had passed, with dancing and singing? What a celebration of life and legacy!
Thousands of entrepreneurs have taken early retirement over the last year, many without a clear succession plan. Some of the vacancies have been temporarily filled by former employees or next-generation relatives, while others remain open.
History reveals it is not uncommon for crisis to create or accelerate significant changes at the top. For example, during the 2008-2009 financial crisis, more than 2,000 CEOs of publicly-traded companies were replaced, according to Challenger, Gray & Christmas.
Leadership Legacy at Risk
Based on the succession planning research of Yo-Jud Cheng , Boris Groysberg and Paul Healy, Harvard Business Review (May 2020):
- 63% of private companies do not have a CEO succession contingency plan in place
- 69% of companies with less than $50 million in annual revenues lack a plan
- The need for a succession plan is often more acute in small firms, especially start-ups
According to the researchers, 45% of all the U.S. companies they surveyed do not have a contingency plan for CEO succession, and 46% do not have an effective plan process for CEO succession. The industries most at risk include Health care (61% without a CEO succession contingency plan), Media (61%) IT and telecom (59%), and Consumer staples (53%).
Creating a lasting legacy is no easy feat. Those who succeed develop other executives: they understand what it takes for a successful leader to develop the capabilities to take a complex organization into the future, even in times of uncertainty.
What do you think? What is your leadership legacy? You can reach me here, on LinkedIn, or give me a call: 561-582-6060.
