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Succession planning: Preparing for untimely exits or sickness in critical roles

1st January 2024

Succession planning: Preparing for untimely exits or sickness in critical roles

Anyone who watched hit series Succession will recall the ongoing headache faced by media mogul Logan Roy owing to a lack of a solid succession plan.

In some ways, the fictional series echoes real life. Research suggests only 35 per cent of organisations have a formalised succession plan for their business-critical roles. Legal & General’s study also revealed over half of UK family businesses had no form of plan in place at all, instead resorting to a reactive, rather than a proactive succession approach.

In certain circumstances, a business has plenty of time to prepare for the loss of a critical player. Through retirement, for example. However, if replacement is forced through a career move or ill health, companies with no solid succession pipeline can be seriously caught off-guard.

As well as the resulting scramble to find a replacement, such a sudden and unexpected departure can have a destabilising impact on a company and its shareholders. Being prepared is vital to ensure investors and employees have confidence in a company’s future.

Identify critical roles to plan for

Businesses can prepare by identifying the roles where operations, strategies and decision-making of an organisation would be dramatically impacted should a position suddenly become empty.

Consider positions which have a high impact on core operations, strategic initiatives and overall performance. Be sure to identify roles that involve critical decision-making authority and require strong leadership skills.

It is also vital to ensure any positions that require specialist knowledge or industry-specific expertise, particularly those where there is a scarcity of talent, are included in the succession plan.

Develop a talent pool

Provide training and development to employees who support the future needs of the organisation. There’s no guarantee they won’t move on, but setting up a personalised career path is good for morale and can help guide employees to future options at the organisation.

Businesses that nurture a strong internal pool of skills are better-placed to efficiently fill open roles and retain their high potential employees. Conduct regular appraisals, provide performance feedback and consider using psychometric testing to assess potential replacements.

It’s also important to ensure diversity is considered in any succession plan. A diverse leadership team of people from various cultures and backgrounds can bring new perspectives and ideas to the table.

Consider a mentorship programme

Mentoring programmes help retain invaluable institutional knowledge, skills and experiences within an organisation. By deploying them company-wide, and not just for executive leaders, you can ensure that every function in each department has a viable successor.

In addition, employees within a mentoring programme are more likely to be more engaged with the organisation while exposure to different aspects of the business will broaden their skillset.

Keep it flexible

A succession strategy doesn’t have to be set in stone. Make it an evolving conversation as the businesses grows and people make transitions.

Consider looking externally too, particularly if there is no one suitable within your own organisation. A recruitment consultancy can conduct talent mapping to keep you up to date with potential candidates within the relevant market.

The business and the individual will need the flexibility to adapt to the unexpected and it is advisable to carry out regular reviews. Doing this within a clear strategy is always more effective.

Conclusion

Making succession planning a priority provides peace of mind, can help make talent decisions and prepares a business for a change-ready workforce, with reduced turnover.

See it as an investment for the future for your business and a pivotal role in maintaining continuity, stability and long-term growth.