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Leadership Transition Institute Launches to Address Multi-Billion Dollar Challenge of Ineffective Leadership Transitions

Leading Academics and Business Leaders Join Forces to Tackle Growing Issue in Public and Private Organizations


News provided by

CEB

Jun 17, 2013, 08:55 ET

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WASHINGTON, June 17, 2013 /PRNewswire/ -- Today, leading academics, business leaders and CEB (NYSE: CEB) announce the launch of The Leadership Transition Institute. This new organization is a nonpartisan think tank with the mission of improving the economic and human outcomes of leadership transitions at private, public and governmental organizations globally. The Institute, with offices in Washington, DC, London and Singapore, will create a platform for collaboration among top researchers and business practitioners.     

As organizations face rising complexities and performance pressures, leadership transitions - changes in the executive management ranks - are occurring more frequently and with greater costs than ever before. Recent CEB research reveals that, while spectacular failures draw the most attention, nearly half of all leadership transitions struggle quietly. Similarly, while costs such as executive compensation draw attention, the true costs of ineffective leadership transitions are much more far reaching, from declines in organizational effectiveness, productivity and key talent retention, to negative career impact on affected leaders and employees. By strengthening transition management, many organizations have an opportunity to boost revenue by as much as three-to-five percent, while reducing costs and operating risk. 

"Despite being a widespread challenge at most corporations and having a potentially negative impact on corporate performance, leadership transitions remain a significantly under-researched area," said Randall S. Peterson, professor, London Business School. "Organizations typically approach this critical business event without the proper processes in place, leaving the new executive with the burdensome task of trying to navigate their new environment alone."

The Institute's initial research partners include among others, Randall S. Peterson, professor, London Business School; Mansour Javidan, professor and founding director of the Najafi Global Mindset Institute, Thunderbird School of Global Management; Katherine Klein, the Edward H. Bowman professor of management, Wharton School at the University of Pennsylvania; and Konstantin Korotov, professor and director of the Center for Leadership Development research, European School of Management and Technology.

The Leadership Transition Institute is focusing its agenda on three areas related to leadership transition effectiveness:

1.    Understanding the costs and causes of leadership transition failures

2.    Assessing and selecting the right leadership talent 

3.    Establishing proven processes and innovations for transition management 

"Across our network of thousands of organizations globally, we are seeing an increase in leadership transition challenges and growing awareness of their hidden costs. Driving effective leadership transition management is relevant for even the strongest organizations and leaders across all sectors," said Steve Meyer, group president at CEB, who also will serve as Chairman of The Leadership Transition Institute. "We are excited to collaborate with a tremendous set of academics and executives to address this challenge. By coupling rigorous academic study with insight from world-class practitioners, The Leadership Transition Institute holds great potential to improve both organizational productivity and the careers of thousands of the world's best and brightest."

To learn more about The Leadership Transition Institute visit www.leadershiptransitioninstitute.com.

SOURCE CEB

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