Global executive search firm IIC Partners released the resultstoday of a survey of 1,270 senior-level executives. Mostrespondents occupy the C-suite—41 percent in the Americas; 30percent in Europe, Middle East, and Africa; and 27 percent in theAsia-Pacific region. Across all geographies, the survey found thatmany companies have implemented formal succession plans, but themajority of those plans are not very effective.

More than half of the survey's respondents said their companyhas a succession plan in place, but only one in five said theorganization could replace them immediately if they left. (SeeFigure 1.) “No matter the location or the industry, there remains agap in succession planning by many organizations,” says Paul Dinte,chairman of IIC Partners. “It is one thing to have a writtensuccession plan, but quite another to be prepared for the departureof a C-level executive.”

When asked about the impact that an unexpected senior-executivedeparture might have on their organization, the largest proportionof survey respondents (38 percent) said an unforeseen departurewould have a negative impact on the corporate culture. Nearly onein five (18 percent) said it would lead to the delay or loss of anew product or service, and 14 percent said it would lead to lossof revenue. And one in six (16 percent) said departure of oneexecutive would lead to the departure of another executive.

IIC Partners projects that challenges around succession planningwill be exacerbated in the coming years. “The findings of thissurvey point to a gap in succession planning at many companies,”Dinte says. “This oversight will likely be worsened with thecontinued exodus of Baby Boomers from the workplace, as well as thedifferent relationship with work that many younger employees have.Gen-X employees tend to change jobs more frequently. As thisgeneration moves into C-suite positions, corporate expectations forlength of service may have to be adjusted.”