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Legal Factors Employment Law Health and Safety Law Competition Law Regional Legislation Investment Law Ethical Factors Reciprocal Responsibilities Responsibility to Host Community Good Faith Universal Rules Demographic Factors Household Patterns Ethnic Mix Educational Levels Age Distribution Number of People Within Working Age Group Net Inward Migration Every forward-looking firm must be involved in environmental intelligence activities so as to be abreast with the key indicators of the rapid changes in its business environment, which would facilitate clear identification of appropriate action points for attainment of organisational objectives. “In the last decade, we have witnessed a 59 percent increase in the overall rate of CEO turnover and 318 percent increase in performance-related departures. In spite of these alarming statistics, many organizations lack a strong, viable succession management plan for their top positions.” “Companies with stronger leadership development systems enjoy higher returns on equity and profit than their competitors.” Source: DDI Top 12 reasons to implement succession planning 1. Meet the requirement of the Board of Directors and other stakeholders that a leadership succession planning process is in place. 2. Understand the hidden talents of your leadership team to optimize their utility in day-to-day projects and initiatives. This raises productivity for the entire organization. 3. Optimal deployment of leadership talent creates a competitive advantage. 4. Use this knowledge base to flex the existing organization structure to the changing demands of the marketplace. 5. Extend the process quickly to collect data for organization design initiatives to assimilate new leaders post acquisitions and mergers. 6. Robust “people data” is very useful for downsizing situations - so the right people remain in order to successfully rebuild. 7. Have strategic staffing needs drive the expenditures for executive education, thereby ensuring a s
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