While most senior leaders and board members recognize the strategic importance of succession planning, very few are able to successfully execute it. Unfortunately, the cost of poor, or worse, lack of succession planning in an organisation is steep. At the same time, the fruits of a well-rounded process are sweet. Succession planning, like any other kind of planning, is an ongoing albeit complex process. It is a piece with multiple moving parts and each one of these parts needs to be in sync for it to be a success. Identifying and locking in on the next CEO is just one part of the puzzle. The ultimate goal is not just to find someone to take on a certain C-level role but to create the right environment to identify, develop, and retain potential leaders.
While many believe that succession planning is meant for larger organisations, this could not be further from the truth. Every organisation stands to benefit from preparing for the future, readying themselves for the unexpected, regularly reviewing and adapting their succession plans on the basis of changing industry dynamics, as well as the needs of the employees and the organisation.
It is not just about who, but also, how
A succession plan does not exist in a vacuum. It needs to be aligned with the vision, goals, and values of a company. The successor must be chosen with the business roadmap in mind. This roadmap becomes the foundation upon which the entire succession planning process is built.
Once the board members, business, and HR leaders have all agreed upon what they need from their next leader, it is time to prepare and assess the individual identified for the role. Coaching and cross-functional training have an irreplaceable role to play in the process. Moving into an executive leadership position can be a difficult transition for many. This is where coaching becomes invaluable. It helps identify the goals, priorities, and values required to step into the shoes of a CEO. Coaching is critical to determining the readiness of the future leader. Cross-functional training, on the other hand, allows the individual to test the waters, and build on core competencies required to meet the demands of the role. Through this period of coaching and training, the current CEO must also play their part by providing insights and guidance to the upcoming candidate. This helps ensure that the potential candidate is aligned with long-term business goals, the company’s aspirations, as well as the nuanced demands of employees. Coaching coupled with cross-functional training also allows key stakeholders to get a clearer picture of the prospect’s commitment to personal and professional development -- a trait that is vital to C-level leaders.
Creating a pipeline of leaders means ensuring that a succession line to the senior management, and not just the CEO, is prepared to step up and take on the responsibilities when required. This means that HR teams and CXOs must work together to build a culture of identifying and honing future leaders. Every organisation must have a comprehensive and transparent growth plan for every such individual. Prioritizing succession planning in boardrooms translates into investing in the right people within the organization. Once a succession line is identified, each individual also needs to undergo training and coaching that help them grow into effective leaders. It is also beneficial to remember that the kind of coaching and training that work for one, may not work for the other. Therefore, senior leaders and HR teams must spend time examining the successors, identifying their core strengths, noting the aspects that need improvement, and then, building a tailored coaching plan. This can only be achieved through open and honest dialogue between everyone involved.
The transition and how to make it happen
The transition process is critical to succession planning. Transitioning into any new role is challenging. So one can only imagine the complexities involved in taking over as the next CEO. To ensure that the transition process is seamless for both, the new leader and the stakeholders, communication is arguably the most important tool. This is the period when the successor gets an opportunity to become familiar with their new role and responsibilities. Keeping an open channel of communication with the exiting CEO, board members, and HR teams is of utmost value at this stage. This allows the new CEO to build independent relationships and create their brand within the organisation. As much as one would like to rush straight into the action it is essential to ensure that the transition period is a gradual one. It is up to the senior leadership to give their new CEO ample time to realign with the people, processes, and practices of their organization. The support of other C-suite members can empower a successor with valuable perspectives.
A change in leadership can disrupt an organisation’s environment in multiple ways. It is important to recognise that change brings about a feeling of uneasiness for many. A slow and steady transition allows everyone affected by the designated change to get acquainted with the vision, and the person behind it.
