Survey: 80% of SME Executives Proposed Improvements Before Quitting due to Management Disappointment

OGS Consulting Co., Ltd. (Location: Osaka City, Osaka; CEO: Kei Fukaishi) conducted a survey on the "Realities of Executive Turnover in SMEs and the Perception Gap with Management," targeting business professionals with management or executive experience who had resigned within the past five years.

"My right-hand person suddenly quit." Some SME owners may have experienced this. However, this survey reveals that many capable executives do not quit "suddenly." Instead, they repeatedly consult with or propose organizational improvements to management prior to making that decision. The departure of an executive doesn't just mean a shortage of personnel; it can significantly impact the entire organization by slowing decision-making, weakening management functions, and triggering a chain of resignations among younger staff. Therefore, it is crucial to deeply understand the true reasons why they chose to leave the company.

*In this survey, "right-hand talent" is defined as executives and managers who operate close to the owner, driving organizational operations and business advancement, and bridging the gap between the frontline and management.

To address this, OGS Consulting Co., Ltd., which supports essential organizational development centered on strategy-linked HR evaluation systems, conducted a survey among individuals with management experience who had resigned within the past five years.

[Survey Overview] - Survey Period: Friday, May 1, 2026 - Monday, May 11, 2026 - Survey Method: Internet survey via PRIZMA - Number of Respondents: 1,001 - Survey Sponsor: OGS Consulting Co., Ltd.

The True Reason Why Capable Executives Leave When asked, "When did you feel most strongly that you wanted to 'grow the company' alongside the owner?", the most common answer was "When I felt trusted and expected to be a 'right-hand' by the owner (32.5%)," followed by "When I was driving business expansion and organizational reform with my own hands (23.7%)." This indicates that executives desire to be treated as partners in "co-creating management" and seek substantial authority and involvement in management.

Regarding the challenges they felt concerning corporate strategy, the top response was "The company's direction and vision are not defined (38.1%)," followed by "Policies frequently change on a whim of the management, lacking consistency (33.2%)."

The primary reason for deciding to resign was "Misalignment in 'direction and vision' regarding business policies with the owner (34.1%)," followed by "'Giving up on the owner' because suggesting organizational issues and improvements changes nothing (27.9%)" and "'Distrust' toward the owner's management stance (27.4%)."

"Proposals and Disappointment" Behind the Resignations When asked if they directly proposed or consulted with the owner about organizational issues before deciding to resign, about 80% answered either "Frequently proposed and consulted directly (27.5%)" or "Proposed and consulted directly several times (50.3%)."

For those who answered they couldn't speak up or thought it was useless, the reasons were "Because I knew the owner wouldn't admit fault (35.6%)" and "Because the corporate culture did not tolerate critical opinions or counter-proposals (28.8%)." Management's unreceptive attitude might be causing missed opportunities to improve organizational issues.