Every business needs to pay close attention to succession planning.
Far too many organizations depend on far too few people to succeed. I often ask my clients, “What happens to your business if something happens to you?” The answer is usually less than satisfactory. A key leadership responsibility is to mitigate risk. One of the most significant risks you have in any company is people, starting at the top. It may feed your ego to be critically important to your company, but it is no way to build an enduring, successful organization. Proper succession planning ensures your business’s future and increases your organizational adaptability.
All leaders and managers at every level should be thinking about who will succeed them in their role. You must prioritize the development of your successor as you progress toward greater and better opportunities. Unless you hold the position of ownership, you may have to confront the possibility that individuals below you in the hierarchy could surpass you in the future. Instead of resisting this dynamic, take pride in your ability to groom and mentor talented people. If you put the interests of the company ahead of your own, the right decisions become much easier to make.
I also do not like to see organizations held hostage due to the importance of any one employee. I understand this can be a more difficult challenge for smaller businesses and non-profits, especially when it involves founders. However, the challenge needs addressing. When it comes to the fate or good of the group, individuals shouldn’t have all the power.
If an important function or role is in the hands of one person, what do you do if they get sick, leave to take another job, or have some other major life issue distract their attention? Always have a backup plan in place. Moreover, whenever an employee of this caliber threatens to leave for greener pastures, I say let them. When they start negotiating this way, they ultimately end up leaving anyway (although occasionally they return after experiencing the alternative). Strive to build better bench strength the next time, so you are not held hostage.
Our job as leaders is to create interdependence, not dependence. The good news is that people usually step up if you ask them to. Most employees want to learn and grow and take on additional responsibilities. If you create a work environment where the only option isn’t “up or out,” individuals will stretch themselves when asked. Just be wary about pitting people against one another and fostering a win-lose mindset. Great teams always beat talented individuals. Lastly, you should constantly assess your employees’ talents and skill sets and proactively address any gaps as needed.
Never forget that as a business, you are your people. Your future is in the hands of your newest recruit and latest employee promotion. Succession planning isn’t optional. It is critical to your long-term success.