Local Business Leader Transition Research Finds that Businesses Could Lose Millions
Saskatoon, November 18, 2020 : The retirement exodus of about 3.3 million Canadian employees over the
next decade will have an impact on business continuity, financial stability, and business
Kathleen Ozmun and Marielle Gauthier, both experienced professional leadership
coaches, conducted discovery research focusing on retiring and incoming leader
transitions in Saskatoon.
“A change in leadership is a time of flux and change for everyone – the leader and the
team,” says Marielle Gauthier, Redworks Communications and Coaching. “These
transitions create potential risks at every level of the organization and profitability,
productivity and positivity can be negatively affected.”
The report found that the financial costs to the businesses if the transition failed were
significant – from tens of thousands to more than $3 million dollars.
“When a transitioning leader struggles, the impact goes beyond individual
performance,” says Kathleen Ozmun, Crossing Point Coaching and Consulting. “The
leaders’ struggles and the lack of a transition support plan can affect the business
services to the point that whole programs are in jeopardy.”
Based on the findings, there are opportunities for greater attention to better manage
the transition for the retiring and the incoming leader and from one leader to another.
It is paramount that businesses look at decreasing and preventing some of the
challenges as stated in the findings, to ultimately lower the risks, increase productivity
and quality of work, and foster better stakeholder relationships, all of which impact the
Ruth Kinzel, PhD, CPHR, Kinzel Cadrin & Associates Consulting says that the research
provides rare insight into the lived experience of local leaders in transition. Kinzel also
states there is a backlog of unaddressed transition issues in every sector, the costs of
which continue to accrue and it is in the best interests of organizations and the people
within them to move forward proactively.
“The stakes are high and the wave is upon us and these research findings can inform
your way forward. Gauthier and Ozmun identify key issues as well as productive ways to
address transition challenges,” says Kinzel.
The study findings included challenges and struggles of the leaders; impacts and
potential risks to the organizations; levels and types of supports in place and the
financial costs if transitions failed.
Business owners can create successful transitions for both their organization and their
new leaders by establishing consistent key practices. Starting in January, Gauthier and
Ozmun are offering interactive practical learning and implementation sessions. Their
goal is to support organizations and individuals to understand their transitions, mitigate
risks and design customized strategies.