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Articles » Business » Succession Planning
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- Article Views: 2057
- Word Count: 2633
- Date Contributed: Jun 03, 2006
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| Succession Planning |
Part #1: The Art of Succession Planning
Succession planning, like any business acumen, is both an art and a science. That is to say, there are many proven strategies that can and must be followed so that successful transition can occur.
Too often organizations address the succession challenge through the rearview mirror. They wait for someone to step down or even worse, be removed. Then and only then do they entertain thoughts of who should succeed or what should happen next?
One of the reasons little forethought is given to succession is evident in the fact that it rarely appears in corporate business plans. Companies are diligent in forecasting-out 3, 5 and even 10-years but most of what they plan has more to do with finance, P&L, and product evolution with little or no emphasis on who or how future leaders will captain the corporate ship.
It’s no secret senior executives, especially those new to the position, see themselves as bulletproof. In their mind, talk of succession is analogous to talk about potential failure - they will be there forever - so they have little appetite for negativities like that preferring rather to concentrate on positive things like how they will make the company successful - perhaps in perpetuity?
International consulting firms like The Meta Group, take strong positions when they say, “The success of any corporate succession is predicated on the strength of the company’s business plan. Leadership change is integral to future corporate strategies and should be built-in. The success of which, however, [succession planning] hinges expressly on whether or not the architects have a clear understanding of three important criteria:
a) What will it take to keep the company Running and Profitable?
b) What will it take to Grow the company? and,
c) What will it take to Change the company?”
It is here we see more clearly succession planning is an integral part of a much larger stratagem, more complex, perhaps, than at first blush.
Senior executives understandably and as a rule, rise to the top based primarily on proven skills tacitly believed by corporate board members or company owners to be the stuff necessary to champion the needs of the corporation. In a perfect world, the corporate cream rises in a comfortable and timely fashion. But we don’t live in a perfect word. One could argue we live in a more imperfect world than we’d like to believe.
With that in mind, companies and industries the world over, are addressing the reality that a decade from now, their entire business landscape and corporate model will be unquestionably different! That said, company architects are [or should be] focused more diligently on grooming succession executives with respect to the strategic needs of running the corporation profitably in the NEW marketplace in the near future.
Clearly few executives get by today without a reasonable understanding of how to work a computer, the Internet, Excel, PowerPoint and so on. Just a few short years ago, it wasn’t uncommon for senior execs to rely totally on assistants for technical support - rendering their [exec] desktop computers as nothing more than entertainment devices showing pretty fish and flying toasters.
What will tomorrow’s corporate executives need to know? Will they need to be IT experts? Will an MBA Degree be enough? Will the future of the company demand a better understanding of Corporate Law – International or Domestic – Human Resources Issues, Strategic or Crises-Management expertise, Techno-Mechanical knowledge? … etc.
In order to groom the next generation of corporate management, planners must be absolutely clear on what [broad-based] tactical skill-requirements will be essential for corporate leadership and growth. A clear and unequivocal business plan in tandem with future leadership skill-set-deliverables are the integral ingredients necessary to ensure the success of leadership succession.
No one’s saying the CEOs of the future have to be experts in all fields or in all disciplines. As the Chinese say, “Man, who chases 2 rabbits, catches none!” Nevertheless, it will be increasingly important that senior exec’s have a comprehensive understanding of the challenges and disciplines for which they are ultimately responsible and therefore must manage.
Bottom Line:
Succession Planning is strategic, tactile and deliberate involving a clear understanding of how corporations need to change in lockstep with strategies designed to groom future leaders to meet the need. Successful ‘Transitionists’ understand Succession Planning is both an Art and a Science.
Part #2: Succession Planning?
... Not on My Watch!
At first blush, it would appear there is no shortage of Succession Planning Advocates convinced in theory, the importance and benefits of corporate Succession Planning. In practice, however, real succession planning - or the overt lack thereof - runs juxtaposed to principle. The important question then is, “Why?”
Clearly, the advantage of proper planning is believed by most to be no argument at all. But try telling that to some company owners or today’s high calibre CEOs.
Those who rise to power, especially in large organizations, do so because they possess what’s known as, the Royal Jelly. Most are born leaders with unlimited high energy, charisma and an innate psychological need to win, control and dominate. Although it would be easy for some to cast aspersions on such a profile, the fact is, these attributes are the stuff integral to power and for most of us, what we admire in our leaders.
Would it surprise anyone then, if those, predisposed to leadership and control, may find discomfort in succession planning? Simply said, any plan for succession, is a blueprint for the [call it anything you want] inevitable loss of power, control or prestige they worked so long and hard to achieve. After all, in the mind of a new CEO: They’re going to be there forever…and/or … If they leave, it will be by their choosing.
No leader is perfect. They all make mistakes. For them, the last thing they need is the added pressure of a motivated Heir Apparent waiting in the wings with a blueprint for a much anticipated and inevitable transition to power. Reining CEOs are not sacrosanct from the ambitions of the Would-be-Kings. The net result? No Succession plan.
Where there’s a Will… There’s a Relative!
Wish if we could that each successive generation spawn greater leaders than the last. Successful family-owned and operated companies face succession challenges on two fronts. Not every child of a great leader is blessed with the Royal Jelly. [Teddy Kennedy spring to mind?] More often the next generation, either because of or despite having lived a life of privilege, find themselves bereft of the right stuff and unequipped to lead. A good model for this is the British Monarchy. [Hang in there Lizzy!]
Succession planning for family-owned businesses can further be compromised if there are heir apparents from competing families. The right family heir to run the company may not [politically] be next in line and therefore succession planning is often avoided at all costs in order to circumvent a potentially divisive situation. Who will forget the bitter battle of two brothers for the McCain family frozen food empire?
Beware the Motivations of the Succession Planning Architect!
In ancient Rome, the Emperor Tiberius appointed Caligula to be his successor. A magnanimous gesture to say the least but not the real reason for his choice. Tiberius was more concerned about his own legacy - fuelled mostly by an unusually large ego.
By appointing Caligula, it was his hope the people of Rome would grow to hate the new ruler, to see him as the miscreant he was. They did. In so doing and at the expense of the Roman people, Tiberius believed he had done himself a great service by indemnifying an unquestioned personal legacy of benevolence and superior leadership.
Tiberius, however, didn’t corner the market on self-serving succession planning. For more contemporary examples we need only look at the recently replaced Prime Minister of Canada, The Right [Honourable?] Jean Chrétien and his agonizing Long Good-Bye.
Regardless of whether one voted for him or not, in a democratic society, the rein of any leader must eventually come to an end either by popular vote or for the good of the people. For dominant leaders it is understood that stepping down is never an easy decision to make or to do.
That said, the political winds of change are never transparent and therefore not unexpected for, in this case, Canadians, to expect a certain respectability or professionalism from their leader in the transition process. Sadly, the former Prime Minister now serves as the quintessential example of bad Succession Planning because in the end, who benefited? Canadians? His Legacy? His ego? ...How Tiberiunesque! Bad Succession Planning!
Part #3: Managing Change in Changing Times
Succession planning is at the heart of CHANGE. Whether to change is no longer an option for companies serious about survival. How to manage change -- and how little or how much -- are the challenges we now all must face.
The word ‘Now,’ however, is a misnomer. Change is not new nor is the need to address it. Granted, the pace of change may differ, but in the end, it’s just a fact of life or business. What is new is the way we cope with change [succession] and judging by the legions of zombie-like workers and stress related health-claims, it’s not a stretch to believe we’re not doing a very good job. Many companies today have a non-sustainable work environment. They are literally burning out their employees.
More to the point; the fundamentals of psychology, human behaviour and motivation have not changed, and likely never will. Any successful formula for change and managing that change must include support for these principles otherwise; the process is destined to fail.
Whenever asked to comment or speak to groups regarding a blueprint for successful change, I advocate the following:
#1: Understand that the success of any change is integrally linked to the ability of leaders to clearly identify, communicate and garner acceptance from those whose responsibility it will be to affect change.
#2: Educate all leaders regarding all attributes of change: Scope, Magnitude, Timing, Expectations, Accountability and Corporate Commitment.
#3: Employ a stratagem designed to clearly demonstrate:
a) All aspects of the organization are and were considered in the planning process for implementing change,
b) The importance of groups working as one complete entity for the success of projected outcome/s.
#4: Expect, recognize and communicate the message that there is and will be some discomfort in establishing a willingness / readiness for change, and, the importance of getting people to buy in to the new approach/s quickly.
#5: Identify immediately paradigm-shift-specialists or transformation-champions who are by nature unafraid of change. This elite group of Change-Leaders will serve to lead those who experience trepidation. Understand the critical psychological importance for workers to see ‘leaders’ – other than management – buying in to the vision and benefits of change whether it be process or leadership.
#6: Establish a team approach that incorporates and delineates all stakeholders in the change process. Share power with Change-Leaders to expressly encourage the implementation and acceptance of change protocol and practices that undoubtedly come with new leadership. Appreciate the importance for speedy implementation to ensure people never lose interest or motivation.
#7: Make specific plans, but encourage individual participation in contributions designed to embolden the new plan. Those who feel they have ownership in the success of the plan out-perform those who feel out-of-control with it.
#8: Invest strongly in strategic training and staff development. Training programs should include progressive developmental sessions in tandem with one-on-one coaching strategies to ensure that employees’ development is in sync with corporate change criteria and new leadership direction.
#9: Recognize that change has varying emotional effects on managers as well as subordinates. Managers sometimes need help in developing a measured understanding of new practices. They must be prepared for execution-lag, with progress often (temporarily) taking a backward step before improvement is realized. It is psychologically important leaders know the company expects them to take a longer view and realize that the company understands some changes take time and need not be forced.
#10: Know that the fastest way to effect successful succession / transition and corporate acceptance is through ample recognition and reward. Too often, reward-based incentive programs are only given to sales teams at the expense of potential gains from enthusiastic contributions of other groups satisfied with – in most cases – simple recognition.
Succession Psychology : Change-Ideals versus Change-Management
Succession-Leaders must understand the difference between the motivating factors of altruism and the human-behavioural laws of change in actual practice -- or as the old cliché goes, “When the rubber meets the road.”
Looking at it another way, when Johnny marches off to war, he does so for unselfish reasons. He believes in good versus evil and sees himself on the side of the angels. Altruism is a powerful motivator, as evidenced by any brave man or woman willing to leave the comfort and security of their home and family to go to war to defend what’s believed to be, universal principles, - knowing they may be called upon to pay the ultimate sacrifice with their lives.
On the other hand, their intentions, however noble, quickly take a back seat the minute the first battle begins and bullets start to fly. Success and survival instantly depends on two factors:
a) How well they – each individual – serve their group, and,
b) Whether the group prevails.
In business, successful companies embrace the motivating power of altruistic principles but understand altruism has a short lifespan and is used accordingly. Too many unsuccessful leaders think things like a good Mission Statement or a Good Cause will carry the momentum needed to see organizations through the sometimes arduous tasks of leadership succession and change. They won’t.
Enlightened leaders support the fact that it is natural for people to do things for personal gain – and there is nothing wrong with that – but the challenge is and will always be to ensure individuals see that any personal gain can only come by means of their contribution to the success of the group through the support of the new regime.
To be clear, when Johnny comes home from the war, he is not decorated strictly on how many enemies he killed, nor is he promoted based on what the enemy thinks of him. He is decorated and promoted by way of what his leaders and group think of him, which is based on how they believe his individual efforts contributed to the success of the group’s mission.
Similarly, business people do not rise based on what customers think of them, but rather on what those who work along side them [managers and colleagues alike] think of their individual contributions to the company – especially when asked to support / implement strategic change involving succession strategies for the good of the company and its ultimate success.
Bottom Line:
Succession Planning is an integral part of what binds and brings balance to business, politics and even our personal lives. Like most disciplines, it’s not as easy as it sounds. Nevertheless, like death and taxes, it is unavoidable and will come one day on our watch. What still remains our choice is how we handle it when it’s our time… That too will reflect in our legacy.
Paul Shearstone aka The ‘Pragmatic Persuasionist’ is one of North America’s foremost experts on Sales and Persuasion.
An International Keynote Speaker, Author, Writer, Motivation, Corporate Ethics,
Time & Stress Management Specialist,
Paul enlightens and challenges audiences as he informs motivates and entertains.
To comment on this article or to book the Pragmatic Persuasionist
for your next successful event
we invite to contact Paul Shearstone directly
@416-728-5556 or 1-866-855-4590
 www.success150.com or paul@success150.com
Article Source: UnArchived Articles
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