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NEWPORT BEACH, CA—CRE recruiting firm RETS Associates reports that only 22% of CRE leaders perceive succession planning as valuable. According to the firm, over the next five years, the C-level executives will be retiring, and there has yet to be sufficient planning to know who will fill their positions. We spoke with principal Kent Elliott about why this is dangerous and what you can do about it.
GlobeSt.com: Why don't CRE leaders perceive succession planning as valuable?
Elliott: Succession planning is so incredibly important to any firm. It's scary that leaders really don't put it at the top of the list. What are some of the reasons? 1. It's easier to ignore than it is to address. 2. They think, “Look, this isn't needed. I don't need to do this. I'm 47 years old, in great health and am going to live forever, so I don't need succession planning now.” The reality is nobody is invincible. It's not a topic people are running to address because it's much easier to ignore, but at the end of the day, everybody is replaceable, without a doubt. 3. They think, “I've got 40 other priorities on my desk, and I'm not planning on retiring soon, so I don't feel like dealing with this big, meaty topic.”
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
