Succession planning is a crucial aspect of organizational management, ensuring the seamless transition of leadership roles and safeguarding the continuity and success of the business. Yet, despite its importance, many companies grapple with numerous pitfalls in executing effective succession plans. From lack of clear criteria and insufficient development of potential successors, to resistance to change and failure to plan for contingencies, the road to successful succession can be fraught with obstacles.
Because succession planning is so important, we want you to be prepared by understanding some common challenges. Implementing proactive measures, organizations can build succession plans that nurture talent, foster diversity and sustain long-term success.
10 Common Succession Plan Failures
Succession planning is complex. Our desire is to help you create as smooth of a transition as possible. This list of 10 failures is not exhaustive but a good place to start. The rest of this article will further unpack these failures and provide action steps you can take to avoid them.
- Lack of Clear Criteria
- Insufficient Development
- Over Reliance on Internal Candidates
- Ignoring Diversity and Inclusion
- Inadequate Communication
- Resistance to Change
- Short-Term Focus
- Failure to Plan for Contingencies
- Inadequate Evaluation and Review
- Lack of Board Involvement
Lack of Clear Criteria to Identify an Ideal Successor
One of the most common failures is not having clear criteria for identifying and evaluating potential successors. Without established criteria, succession decisions may be subjective, hurried and/or biased.
To avoid this potential failure, leadership must develop specific and objective criteria for identifying potential successors based on skills, competencies and leadership qualities. Additionally, the selection committee must be open and honest about the most important criteria to mitigate bias and subjectivity.
Insufficient Development of Potential Successors
Organizations may fail to adequately develop potential successors, either by not providing them with the necessary training and experiences or by not identifying and nurturing talent early enough in their careers.
This failure can be avoided by implementing regular talent development programs for all employees, specifically for the standout leaders. You can do this by providing them with training, mentorship and stretch assignments, thus preparing them for their next career move.
By identifying high-potential employees early in their careers, you can give them opportunities for growth and advancement, ultimately helping you to coach employees into bigger leadership roles.
Over Reliance on Internal Candidates for the Succession Pool
While promoting from within is often preferred, an over reliance on internal candidates can result in a lack of fresh perspectives and innovative thinking. Failing to consider external candidates may limit the pool of talent available.
We recommend maintaining a balance between internal talent development and external recruitment to bring in fresh perspectives and diverse skill sets. There are advantages to both internal and external candidates so keeping a balance between the two will help you find the ideal blend.
Additionally, you can connect with an executive recruiting firm to get a feel for the labor market. Find out how difficult your role is to fill, based on what they are experiencing. Their input can help guide your decision on whether to look inside or outside your organization.
Overlooking Diversity and Inclusion with Succession Can Lead to Problems
Effective succession plans should bring about leadership team that reflect the organization’s workforce and customer base. Failing to do so can perpetuate homogeneity in the C-suite, which may hinder the organization’s ability to adapt to a diverse marketplace.
To encourage diversity in succession planning it’s important to embed principles into the processes to ensure representation of diverse backgrounds and perspectives. This initiative will require you to cultivate a pipeline of diverse talent. As a side note, if your network does not include a wealth of diverse candidates, a well-established executive recruiting firm can be a resource for you.
Inadequate Communication can Lead to Uncertainty about Succession
Poor communication about succession plans can lead to uncertainty and anxiety among employees, particularly those who may be potential successors. Transparent communication is essential to maintain trust and engagement.
To avoid the negative outcomes of poor communication, communicate openly and transparently about succession planning processes, criteria and timelines with employees at all levels. It is also important to allow for feedback and address concerns or questions regarding future plans.
Succession Plans May Be Met with Opposition by Those Resistant to Change
Existing leaders may resist succession planning efforts if they perceive it as a threat to their authority or position within the organization. Overcoming this resistance requires effective change management strategies and leadership alignment.
The remedy to this obstacle is an ongoing process. Foster a culture that values succession planning as a strategic imperative rather than a threat. Lead by example and demonstrate a commitment to succession planning at all levels of the organization. Encourage open discussions about career development and succession across departments and teams.
An Emphasis on Short-Term Goals Can Distract from Succession Planning
Succession planning should be a long-term strategic initiative, but organizations may prioritize short-term objectives over investing in talent development and succession readiness.
One way to avoid this common failure is to clearly communicate the alignment of succession planning efforts and long-term strategic goals and objectives of the organization. To supplement this course of action, allocate resources and investments towards talent development initiatives that support succession readiness over the long term.
Not Planning for Contingencies Can Create Succession Headaches
Unexpected events such as sudden resignations, illnesses, or deaths can disrupt succession plans if contingencies are not adequately prepared for. Organizations must have backup plans in place to mitigate the impact of such events.
Develop contingency plans for unexpected leadership vacancies, including interim leadership arrangements and emergency succession protocols. Regularly review and update contingency plans to account for changes in organizational structure or leadership dynamics.
Inadequate Evaluation and Review Leads to Outdated Succession Plans
Succession plans should be regularly evaluated and updated to ensure they remain aligned with the organization’s evolving needs and strategic direction. Ignoring this step can render the plans ineffective over time.
To head off this potential pitfall, set reoccurring meetings for evaluating and reviewing succession plans, including performance metrics and key milestones. It is also wise to solicit feedback from stakeholders and incorporate lessons learned to continuously improve succession planning processes.
Lack of Board Involvement in Succession Planning
Boards of directors play a crucial role in overseeing succession planning efforts. However, if boards are not actively engaged or do not prioritize succession planning, the process may lack the necessary oversight and strategic direction.
Take preventative measures to educate and engage board members in the importance of succession planning as a strategic imperative for organizational sustainability. From the outset, establish clear roles and responsibilities for the board in overseeing succession planning efforts and holding leadership accountable.
Conclusion
Addressing these common failures requires a comprehensive and proactive approach to succession planning, with a focus on clear criteria, talent development, diversity and inclusion, communication, change management, long-term strategic focus, contingency planning, ongoing evaluation and board involvement.
By implementing these action items, organizations can mitigate the common failures of succession planning and build a robust framework for identifying, developing and transitioning future leaders effectively.