Succession Planning & Governance

Even as one stands paralysed with disbelief at the happenings around us, another stark fact begins to hit you harder. The absolute lack of foresight or a sense of urgency that exists at various levels on the need for succession plan to deal with contingencies be it in an emergency or otherwise.

How else would one explain the situation where the financial capital of the country has been hit hard, the home minister and the chief minister have either resigned or shown the door but the decision makers are have sat and procrastinated for whole week trying to identify their successors? The moot point here is that if the state did not require the key functionaries at this point of time then did they ever require them! Is this the time for us to exhibit our classical indecisiveness?

This is not the first time that we have observed this situation, be it an emergency or normal time. We have had innumerable occasions in the past wherein key posts at regulatory bodies or heads of institutions where the incumbent tenure was completed and the successor not nominated until the last moment or positions kept vacant for day, weeks and months. On the one hand, we have a policy that rightly stipulates that senior positions require that the candidates should have minimum residuary service of atleast two years but then the same policy does not provide that the succession should take place well in advance so that the succession is seamless and complete. The case in point is that succession planning is being ignored as a key governance issue at all levels be it public administration or at various levels in corporate. We are excellent in fire fighting, for we created it and then have a false sense of pride when flames are doused.

Succession Planning is not a will

Succession planning is not be equated to that of a will or a last testament. The will or the last testament would be one of the components of an effective succession plan. Succession planning is not be made only the context of a retirement but needs has to be made in the context any emergency be it temporary unavailability to permanent vacancy for whatever reason. The quality of leadership would largely be determined by the fulfillment its obligation on leadership matters. The existence of well-conceived and defined succession plan can go a long way in enhancing the confidence levels for all the stakeholders and can be an enormous source of reassurance.

Well-defined process

A well-orchestrated succession plan should to exhibit a lot of thought, planning and above all execution. There are definitive principles enunciated for the process of a succession plans. Amongst them include - Identifying the right leader at the right time; It is leadership driven collaborative process; It is a continuous process; constantly ensuring that the pool in churned for size and quality and circumstances; It should be driven by a carefully articulated strategy.

Succession planning is a dynamic and creative process. It would belittle the process to reduce something very significant to a formula. A few basic rules do apply. To begin with, the leadership team should take responsibility for “Ownership” of the succession planning. The plan should be reviewed and updated at least once a year. The plan should contain key elements like an assessment of the organisational management requirements; an assessment of the strengths and weaknesses of the incumbent head and others in the existing hierarchy; identification of potential internal candidates and above all an interim transition plan, particularly where there is no clear internal successor and a separate emergency crisis management plan with designated internal interim successors.

Viewed in the context of above requirements, it would observed that more often than not the succession plans are driven by adhocism, crisis management of the poorest quality driven by events that could have easily been identified and addressed with great ease.

A debate on succession is definitely bound to evoke passionate debates on whether the successor needs to be an insider or should be lateral selection from outside. One can never give a opinion on this that a perfect fit in all circumstances. An insider would definitely be the choice if the organisation is already on good growth path and it just requires management. On the other hand if organisation requires a transformation or a dramatic shift in strategy an outsider would be a more appropriate choice.

No discussion on succession planning would be complete without a discussion on the need for mentoring. An effective succession plan, amongst others, would necessarily have to address the need for grooming of the identified successor. Mentoring can be the one of most effective and efficient means to bridge the current and future. It does not require outside facilitators or trainers as it builds on the internal strengths. It is more often than not the most institutionalized process of transfer of knowledge, often be the single most important goal of a succession-planning program. It would be giving a new sense of purpose to the older generation of being recognised as it lets them know that they are valued. It can provide a renewed energy and motivation as they are in the last lap of their professional career. As far as the identified successor goes it gives him a great opportunity to use an old horse as a sounding board and can take the decisions under well-controlled conditions for decisions are bound to be monitored and reviewed to ensure that impact of wrong decisions are minimized.

Succession planning is an inevitable process that has to be addressed except if one is willing to risk the peril of postponing the inevitable. Family run organisations sometime need it more as the seniors find it hard to cut the proverbial umbilical cord. Cricket buffs would recall the famous words of Graham Yallop the stylish Australian batsman who retired at the peak of his career and wrote in his memoirs that was better to quit when people are still asking why rather than why not”!