How Does Losing Senior Executives Impact Businesses?

Published September 28th, 2021 - 06:00 GMT
senior executive leaving his job
Turnover of senior long-serving manager can have long-term impact on business. (Shutterstock: Stokkete)

Business owners and developers love having senior executives in charge of the business. It keeps them reassured that their goals, vision, and best practices are being put to work. But when this reality changes, stress, and uncertainty start to take over.

It is not easy for CEOs to find dedicated, experienced, and trustworthy individuals to run their businesses in different departments, as it takes a lot of time to build trust along with deep experience. But even when this happens, there eventually comes a time that a business should let go of these people.

Whether these key leaders decide to leave for personal reasons or retire as per rules, they often leave a management void that takes so much time to fill afterward.

Not only do these business shakeups trigger so much worry within the organization itself, causing emotions of uncertainty and anticipation of future leaders, it also poses a challenge to business plans that are yet to see the light.

Usually, a departure decision by a senior executive disrupts the business's biggest plans the most, particularly ones that are directly under their supervision. For example, Apple's long-rumored plans to manufacture a self-driving EV have been greatly impacted by the recent decision of the company's chief advanced technology officer Doug Field.

Apple has for long relied on Field to deliver its first-ever car, especially in light of his previous 5 years of experience at Tesla overseeing the development of Model 3. However, his decision to leave earlier this month leaves all of Apple's cars ambitions in limbo.

Another reason such resignations wreak havoc in companies is the difficulty businesses face trying to replace them. Oftentimes, finding excellent expertise, loyalty, and dedication to work in a person with great leadership skills is a challenging, time-consuming, and probably a costly mission. The higher we go on the success ladder, the more difficult it becomes to find adequate talents that can join your business.

Earlier this month, Bloomberg hinted that the sudden departure of at least 8 senior officials at an Abu Dhabi Bank is linked to the incoming CEO of the organization and the changes she is making within the bank. This unexpected turnover at First Abu Dhabi Bank comes particularly surprising as it takes place during the industry's booming season in the UAE.

In order for businesses to avoid this glitch, senior executives should always be assisted by other employees who can not only help them throughout daily tasks but also learn a lot from their skills and management styles, so they can fill in for them in cases of departure.

Moreover, businesses can make use of notice periods to draft proper succession plans that ensure complete and smooth transitions to new capable individuals, without it negatively affecting the workflow.

Only with wise and prompt management decisions can businesses minimize the damage and get work plans on track again after senior employees leave.

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