10 Succession Failures And How To Avoid Them
1. Lack of direction from the Board
The ultimate accountability for succession lies with the HR Committee of the Board, but it is no less a fiduciary responsibility for the CEO and the top team. Indeed, anyone privileged enough to hold down a leadership role has an ongoing responsibility to develop a successor.
The need? A far more rigorous approach to Board selection. A periodic assessment of Board "fitness for purpose". A regular review of governance provisions. Appointing adjunct Board members with specialised experience and know-how – for example, organisation culture, technology, the succession process.
2. A broken or incomplete process
A flawed process has one defining characteristic – it's not going to take you where you need to be. Conversely, a meaningful process displays all the attributes of a good map. It allows you to identify where the beginning of the journey is, where you need to get to and the key steps along the way.
The need? A rigorous and transparent succession process that allows the Board to understand the thinking and methodology behind "the names on the charts". A succession process that delivers a distinct and sustainable competitive advantage.
3. Confusing 'succession' with 'replacement'
'Succession' and 'replacement' planning build on very different assumptions. Replacement is essentially tactical - a contingency plan to put into effect should a mission-critical role unexpectedly become open. Succession is strategic - it's about tomorrow's leadership.
The need? Recognise the inherent value of both replacement and succession but don't confuse the two. Leaving a mission-critical role unfilled for an extended period of time can be horrendously expensive. It may even put the very future of the business at risk.
4. Casting too wide a net
The shorthand for focus is "less is more". This is especially the case when it comes to succession. The challenge? To identify mission-critical roles.
The need? Restrict the work on succession at the top of the organisation to mission-critical roles – the roles that really matter; the roles that, if filled poorly, can sink the ship.
5. Confusing 'high performance' with 'high potential'
Like riding a rocking horse, not everyone who 'rocks' is going places. It's a mistake to assume that outstanding performance translates into high potential.
The need? Define the specific competencies that describe future success in both the mission-critical role and the generic competencies that capture what it means to be 'high potential'. Selection isn't an exercise in abstract thinking. Make both succession decisions and identifying high potential candidates evidence based.
6. Poorly defined leadership competencies
A leadership competency describes future success in the role. It also captures the behaviours that separate an outstanding performer from one who is merely middle of the road. Three common pitfalls: falling back on generic terms; a myopic focus; relying too heavily on the manager in the role to capture the characteristic of future success.
The need? A comprehensive, up-to-date library of future-looking, thought-leadership-based, context-oriented, role-specific leadership competencies that embrace leadership balance.
7. Future culture is a "best guess"
Your culture is your brand. Succession based on wishful thinking is to place a blind bet on the future without any understanding of what you are actually betting on and without appreciating the damage you are doing to the brand.
The need? Responsibility for culture lies directly with the top team. What you don't measure, you can't manage. It is essential to (really) know: 1) where your organisation culture is today, and 2) where your culture needs to be to compete successfully in the future.
8. Coaching is "something we need to get to"
You can't grow the organisation unless you grow the people in the organisation. At the heart of 'growing' people lies coaching. Coaching isn't a 'sometime skill'. It's a systemic way to think about what it means to be a leader.
The need? As the business environment evolves, new knowledge, skills and capability are demanded. Without coaching, succession is an engine of future performance that is not firing on all cylinders. Those at the top must strive to become masterful in the art of coaching.
9. Misunderstanding what it means to be a team
It is little short of managerial incompetence to enter into the succession conversation without the key decision-makers stepping back to assess the future nature, needs and norms that shape the behaviour of the team(s) involved. And it matters … because tomorrow's organisation will be a team of teams.
The need? Factoring in the makeup and working approach of tomorrow's team(s) is a business imperative. As is uncovering meaningful ways to assess the team.
10. Succession candidates are poorly integrated into the new role
Derailment, no matter what form it takes, destroys value. If they don't land, they won't stay. It's not just a matter of fulfilling all of the requirements of the new role. The challenge is to do so as quickly as possible.
The need? A comprehensive executive induction process supported by both an internal mentor and an external coach. Assessment tools, access to supportive materials and the full support of both the hiring manager and HR are clearly essential. We have also found that a well designed and easy to access workbook is invaluable.
There are a good many issues that can derail a successful business. None, however, contain the potency for failure as having the wrong leader in the wrong role at the wrong time. Succession is a critical investment that you cannot afford to get wrong.
Why is succession so often adjudged a failure? Limited strategic awareness is the start of it. Being overwhelmed by the problems of the day is clearly part of it. But, more often than not, lack of practical intelligence is at the heart of it. To speak to a TRANSEARCH consultant about shaping tomorrow's leadership success today, please get in touch.
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