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The benefits of external succession planning include business and leadership continuity. The risks associated with a change at the helm of a company -- when the C suite leaves -- can have implications for investors, customers, and employees. In traditional organizations, it is also likely that the CXO has groomed his No. 2 to step in. However, it pays to identify and hire top external talent from the best talent pools so that the organization can stay aligned with its long-term vision and goals. A structured plan for succession planning enables this while, at the same time, eliminating the risks associated with a sudden leadership transition.
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