Why Leadership Succession Planning Isn’t Just About the Future

One strategic initiative gets pushed to the back burner far too often – leadership succession planning.

In our experience, leadership succession planning gets pushed off most commonly for a combination of factors: day-to-day is getting in the way; it’s hard to face the end of a hard-won career; company structure is too top-heavy; and/or no one seems to know how or where to start. Thinking about early action as more than just preparing for a CEO’s retirement can help get beyond the roadblocks.

Leadership succession planning can help you run your organization better. Start with leadership development.

Focusing on the potential of your growing leadership all the time (not just when a change is anticipated) as part of your strategic approach helps create a culture centered on innovation and adaptability. Because the depth of involvement increases with engagement, even during leadership shifts, you will see operational disruptions minimized, your customers will still see the value they expect, and your organization will bounce back from challenges faster.

Cultivating future leaders starts with identifying and assessing potential. Then, performance reviews and competency evaluations, mentorship and coaching, training and skill development, and job rotations and stretch assignments will generate a pool of high-potential employees. Potential leaders who are exposed to diverse challenges develop a broader skill set, which in turn not only prepares them for future leadership positions but also infuses your organization with fresh perspectives and ideas.

Your investment in your organization’s future demonstrates your commitment to your customers.

Without your growing leaders, your organization is at risk of a “leadership gap” and a loss of institutional knowledge. That gap can cause operation disruptions, talent drain, and strategic vulnerability. Thinking of leadership succession as a matter of business execution allows your organization to adapt to changing market dynamics and get ahead of any legal and regulatory compliance changes. Your success demonstrates a commitment to the long-term sustainability of delivering for your clients. Delivering value to your customers is always non-negotiable, so when you present top talent with a path forward, they are less likely to look elsewhere for new challenges.

Starting early with your leadership succession planning isn’t as challenging as it might feel.

Your succession planning starts with defining clear objectives and goals, identifying critical roles, assessing talent, establishing ongoing monitoring and evaluation, and planning for contingencies. These components provide a roadmap going forward that is agnostic of the reason for planning.

What you see in your future will likely become clearer once the initial planning is complete. Then, you can determine whether you want to continue operations into the future as the company is currently structured or explore valuations for potential sale. The value of your company lies with your productivity and profitability, the talent your people possess and their dedication to their contributions, and the value you deliver to your customers.

 

The obvious reason to plan ahead is that leadership changes are inevitable. Whether due to retirements, resignations, or unexpected departures, without a plan, operations will be disrupted and stakeholders will lose confidence. Adopting a proactive approach to identifying and developing future leaders will safeguard continuity and success for your business into the future. Contact us to learn more about how you can benefit now and into the future with leadership succession planning.