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Ideally the succession planning and gradual transitioning for any critical position should be a five-year process whenever retirement of the incumbent can be anticipated well in advance. Two years at least is required to have the transition securely and confidently in hand. When succession is necessary abruptly owing to illness, death, defections to another company or personal preference, much less time is available for planning and preparing successors, but the same steps apply at a speedier pace.
Triangular Approach
How to Think About and Achieve Succession Planning by Phyllis Weiss Haserot
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ften overlooked among the pressures of the day, until it becomes urgent, is succession planning and client/customer transitioning. For several years succession planning has ranked at or near the top of priorities in surveys of senior management and HR professionals. Yet the response that only about 30 percent are actually doing something about it, has seen very little uptick all those years in both good and bad economic times. Well, if there were ever bad times, we are in them now, in both public health and economic terms, and the urgency for succession planning has never been higher in our lifetimes! Change affecting just about everything turned on a dime in a few weeks because necessary
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planning was ignored for years. We have seen that denial is not an effective strategy.
The “Why” of Urgency Change happens, like it or not, and you want to be in control. Time is necessary to instill trust and confidence in the designated successor and to be sure the chemistry is right. Companies need to put an institutional process in place in order not to lose customers and highly valued talent when a transition and succession must occur. Succession planning is crucial to avoid business disruption and to retain the value of the brand. So, it needs to be a continual part of your business strategy.
Transitions are an emotional experience. It is important to acknowledge that and build in sensitivity and flexibility. It’s often hard for the incumbent to let go, or there is a sudden illness, death or voluntary departure. All are emotional experiences, even if the baton passes to a family member, in fact, often especially if a family member is the chosen successor. The first step toward sustained success is to integrate succession planning into the business model. It’s not its own separate silo. When the need for transition can be anticipated, which often happens in family and other closely held businesses, the process involves the incumbent, the protégé/ successor and the customer or other key stakeholder. It needs to be carried out very intentionally, planning with the customer or team for the eventual transfer as seamlessly as possible.
Cross-Generational Considerations Conduct dialogues with younger generations, whether family or unrelated executives to develop flexible, transparent, and collaborative approaches to transitioning customers and assuring the same or higher level of service delivery and solid relationships. Their voices are important and need to be heard—even if uncomfortable at first —for sustainable businesses. Given the small X Generation, there is the possibility of a Gen X leadership gap. There are big boomer shoes to fill, and some Gen Xers may not want to make the personal sacrifices the boomers have made.
