Succession Planning – pass the baton without dropping the ball
“You’re not a success until you have a successor.” Sounds harsh, I know, but in reality, no leader gets to stay in their position indefinitely. Staying too long may mean that you exceed your useful economic life within that organisation. Succession Planning comes up quite regularly among my clients and I thought it would be a helpful topic to address in this month’s Sirise Insights.
Succession Planning is vital to organisations that want to continue beyond the working life of their leaders. Family businesses, or other organisations that are founder-led, face particular challenges here.
As an Executive Coach, I find leaders can underestimate the practical and emotional implications of planning for their successor, so here are some tips to think about.
1. plan early and prepare to invest
Is your successor already within the organisation? If so then I doubt they’re 100% ready to step into your role yet (and if they are, then you’ve probably outstayed your welcome….)
If you want to strengthen your business for the future and bring new ideas and innovation, then it’s crucial to ensure that the next generation of leaders have the breadth and depth of experience they’ll need to drive the organisation forward. This might mean investment in leadership skills, building relationships with stakeholders or even, particularly in the case of family businesses, some external experience elsewhere.
2. Homegrown is not always best
There's no guarantee the best successor will be found within your organisation and it’s also dangerous to assume that everyone will want the role. You might love being a Chief Executive, but it’s not the definition of career success for everyone. Be open minded about bringing in an external candidate, even if it’s only for the next generation of leadership, to give others the opportunity to grow. It’s better to have a succession pipeline than promote people who aren’t ready.
3. Beware of your bias
When identifying successors, it’s important to be mindful of our own biases (see last month’s email where I wrote about decision-making or visit: Think fast or think slow but make the right decision). Deep down, we all want to recruit in our own likeness. However, think carefully about what the business really needs next before looking for your ‘Mini-me’. Why not keep bias in check with a small group of trusted advisors to help guide your thinking?
4. Accept the emotion
There’s no shame in acknowledging this stuff can be tough. Whilst moving on might mean a world of fantastic opportunities, whether work or leisure, handing over is likely to stir up some interesting feelings. You’ve emotionally invested in this business over the years. It may even feel like you are losing an extension of yourself. I’ve seen leaders who question their own value, are fearful of the next step and who need to re-assess what’s important to them. Make sure you’ve got the right support in place to help you navigate this and help you focus on you as a person, as well as on your business.
5. Realise nobody likes surprises
You’re probably not the only one who’s worried about this change. Your staff, board, funders, customers and suppliers will doubtless have concerns about a change of leader and what it means for them. Don’t just think about comms to manage this – how can you gradually hand over responsibilities and relationships to your successor? This might be uncomfortable at first, but someone else stepping up doesn’t diminish the strength of your relationships with others – it’s all part of your legacy.
When it comes to Succession Planning there are many open conversations to be had which an external, independent coach can facilitate. Whether you’re a founder who’s struggling to let go, a next generation family business leader who wants to make their own mark, or an HR leader who sees the potential in the senior management team but recognises the need to invest, please get in touch.