A Legacy that Endures

A Legacy that Endures

As a leader, how will your legacy measure up? Your leadership legacy matters. It motivates people in the way they think and behave, today, and in the future. A lasting legacy sets a course: it adds value, creates positive meaning, and empowers others to carry on—with or without you. 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. During the 2008-2009 financial crisis, more than 2,000 CEOs of publicly-traded companies were replaced, according to Challenger, Gray & Christmas. Legacies 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...