HR Pulse

When succession fails

Jonathan Savimbi is a well-qualified forensic specialist working for a major financial institution. Based on his performance, Jonathan has been identified as the only potential successor for the position of managing director. However, when Jonathan makes the transition, despite his obvious talent, his performance does not meet expectations. He is often left feeling confused and overwhelmed.

Jonathan also had to wait six months before being promoted to his new position, despite being told about the promotion eight months ago.

David Conradie, director of human capital at Deloitte Consulting, sheds some light on the issue: "Jonathan has been chosen solely on the basis of his past performance with little focus on either his potential or readiness to make the transition. This is a very common mistake companies make with their top talent. In addition, Jonathan did not have a clear vision and understanding of his new role, nor did he receive any coaching or guidance during this stressful stage of transition in his career".

"Jonathan also experienced what is called a ‘floating state’ - he had to wait a long time for the promotion that he was expecting to occur immediately. This sense of entitlement often occurs when the succession process has not been effectively managed and there is not proper communication with potential successors about the timeline of the process," explains Conradie.

He adds, "Although HR plays a critical role in supporting the identification of potential successors, the ultimate accountability for leadership succession has to rest at a board level - the board should take on an active oversight and governance role. Executive leaders need to get involved in the talent review process and hold line managers responsible for the ongoing development of potential successors".

"Companies also make the mistake of having inadequate coverage ratio for critical positions. A minimum of two to three potential successors should be in place … a successor for now, another for the medium-term and one for the long-term. To mitigate this risk, companies need to consider the optimal size and stratification of their talent pool of high-potential future leaders".

What organisations need to have in place:

Strategic alignment

Businesses need to ensure that the business model and the operating structure are aligned with the overall strategy. In addition, senior leaders must understand which roles are most important for the success and performance of the company. Once this is done, it is imperative to confirm, with the input of job content experts and executive leaders, what is required for success in these roles. This enables potential successors to be assessed against these criteria. They then need embark upon an appropriate individualised development programme to address development needs and ensure their readiness when it is time to make the transition. 

Retention

Dino Desai, a partner at PWC says, "Retention can be achieved by effective employee engagement which is largely achieved if the employer and employee offer an effective value proposition. The key ingredients of an effective value proposition are learning and development, challenging work, work life balance, remuneration, recognition and reward".

Business leadership

"To ensure the sustainability of a business, the leadership needs to develop succession plans. In order for the succession plan to be effective, management should groom the next generation of leaders and build their skills so that they can step into new roles when the need arises. Retention of top talent is a key factor for effective succession planning," says Desai.

"Current leaders provide the inspiration and motivation for talent to aspire to. Current leaders need to engage with top talent either formally or informally, to inspire this talent," continues Desai.

Author: Yolandé Boshoff, editor HR Pulse.