Succession is a serious challenge for every organisation. At some point, leaders must hand over the reigns to new people. These new leaders must be competent, trusted, and understand their roles. They must bring new ideas and energy and find the best way to bring others along on their new journey.
Why Companies Avoid Succession Debates
Succession is topical, but many companies avoid the discussion for several reasons. Some leaders think they are irreplaceable. Succession can also create uncertainty among employees unsettled by the change and looming cultural shifts, so companies dodge the topic to avoid those upsets.
Yet these problems don't occur because of succession but due to a lack of succession planning. When businesses leave leadership changes to the last minute, they cause chaos and disruption. Not only that—if they ignore succession conversations, but they are also effectively inviting stagnation and future problems. No leader will be around forever, and new leaders bring fresh experiences and ideas to the table.
Succession is not just about organised change. A sudden loss of a leader can happen. Yet according to PWC's Africa Family Business Survey 2023, three-quarters of African businesses don't have succession plans, and roughly 40% of SME owners don't have wills in place. Many such businesses don't survive when their owners and key leaders leave, so it's crucial to have a succession plan.
Finally, succession planning helps define career paths. Many well-known leaders are a product of clear succession strategies. Google's current CEO originally led the development of its Chrome browser. He rose through the ranks, aided by clear succession strategies. Succession is a catalyst for developing good leaders at all levels.
Creating a Succession Plan
How can companies start this process? There are several steps they can follow to develop a succession plan:
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Begin early: Don't wait until leaders are headed to the door. Understand that a succession plan is fundamental to a business strategy and should be in place as early as possible.
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Articulate leadership positions: Succession is not limited to the CEO or even executives. It can apply to any important leadership position. Do you know what those are and how they impact the business? Start by outlining leadership profiles in your organisation.
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Identify and develop candidates: Are there people inside or outside the organisation with the necessary skills, experience, and leadership qualities for the role? Start providing development and mentoring opportunities for them.
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Communicate intentions: You don't need to let the world know of succession plans. But don't hide them from stakeholders and career-minded people who could be candidates. This will also help set career paths and allow stakeholders to give feedback on succession plans.
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Understand knowledge transfer: Leaders are not just about culture and direction. They also have a wealth of knowledge that is lost when they leave. Aim to understand the value of each leader and how that can be shared with their successors.
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Overlap and adapt: Tying into knowledge transfer, overlap your succession plans so that the newcomers can learn from the incumbents, even taking over some responsibilities. This also helps spot changes in culture and the differences between people. That person may not be the right pick for the job, or they are a breath of fresh air, but the organisation needs to start adjusting. Be prepared to adapt succession plans as the situation evolves.
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Create contingency plans: What if the worst happens, such as a prominent leader perishing while travelling? Who steps in? Have they been trained? How do you mitigate the blow to your business? Have contingency plans in place for unforeseen leadership losses. This point is where wills play a big role.
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Plan ahead: Don't leave succession and leadership risk mitigation to the last minute. Things will change, and you want to be ready if they do. Don't just think of tomorrow. Think of the next five or ten years, then start to plan for them today.
Consider the fact that no leader will be around forever, and new leaders can bring fresh experiences and ideas to the table. Make sure that your business is future ready.
