How to Develop a Succession Plan for Your Organization

HOW TO DEVELOP A SUCCESSION PLAN FOR YOUR ORGANIZATION

Microsoft co-founder Bill Gates once said, “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next 10. Don’t let yourself be lulled into inaction.” One of the worst mistakes an organization can make is failing to prepare for leadership succession and future growth.

Many once-successful organizations no longer exist because they failed to plan for succession and maintain their relevance. Change can either be initiated through foresight or thrust upon us when leadership falls behind.

Gates’ perspective emphasizes the importance of long-term thinking in succession planning. As we prepare for this year’s final iteration of ILS in its current format, let’s dive into practical steps for succession planning.

STEP 1: ASSESS YOUR ORGANIZATION’S LEADERSHIP NEEDS

Organizations need to understand their leadership needs for the future. The first step in succession planning is identifying the roles crucial for long-term success. Steve Jobs, co-founder of Apple, said, “Innovation distinguishes between a leader and a follower.” Jobs followed this mantra so much that when it was time for him to step down from leadership, he had no doubt Tim Cook was meant to be his replacement.

To help you prepare for succession, ask these key questions:

• Which leadership positions are critical?

• What skills and qualities are needed for these roles?

• How will these roles evolve?

STEP 2: IDENTIFY HIGH-POTENTIAL LEADERS

It’s essential to recognize and develop existing talent. Business legend Warren Buffett said, “The best thing I did was to choose the right heroes.” Are you aware of who is winning the daily battles and thinking outside the box?

Evaluate current employees based on:

• Track record and performance

• Leadership skills and emotional intelligence

• Decision-making ability under pressure

• Alignment with company values

STEP 3: ESTABLISH A LEADERSHIP DEVELOPMENT PROGRAM

Succession planning is about developing people, not just filling a position. Leadership expert John C. Maxwell stated, “Success without a successor is failure.”

A leadership development program should include:

• Mentoring and coaching

• Cross-functional projects

• Training in leadership, strategic thinking, and decision-making

• Opportunities for public speaking and visibility

STEP 4: CREATE A TRANSITION PLAN

To ensure a smooth transition, trust the abilities of future leaders. Author Maya Angelou said, “When someone shows you who they are, believe them the first time.” In the context of succession planning, it’s essential to trust the abilities and qualities that future leaders have already demonstrated. This ensures a smooth handover and continuity. It’s also important to prepare incoming and departing leaders for the changes.

Transition points to consider include:

• A clear timeline

• Communication strategies

• A road map for the handover of responsibilities

• Post-transition support

STEP 5: MONITOR AND UPDATE YOUR PLAN REGULARLY

Succession planning is ongoing. Jim Collins, author of “Good to Great,” said, “Level 5 leaders set up their successors for even greater success in the next generation.” This isn’t possible without sharing your plans in written, tangible form. Regularly review and update your plan to align with the evolving needs of your organization.