Bad news first: Most executive successions fail.

The research tends to peg failure rates around 66% for small and medium-sized organizations. Success rates improve for larger companies but still aren’t comfort-inducing.

Failure is a squishy term and can mean different things. For our purposes, it means that the owners or board aren’t happy.

Now the good news: The reasons for failure aren’t mysterious.

They just are usually not known or respected.

There are two primary reasons why succession fails. At risk of being overly simplistic, they boil down to:

One: The organization didn’t prepare (or prepare adequately) 

In short, succession can trigger uncomfortable conversations. It takes time and effort. There is a strong tendency for whoever is leading the process to choose for comfort and convenience.  

I’ve written elsewhere about how the organization or outgoing leader should prepare for succussion. Click here [CEO_Emergency_Succession_Plan_Christian_Muntean] if you’d like to read about how to do this in planned scenarios and in emergency scenarios.  

Two: The successor wasn’t prepared or supported

Often the organization often doesn’t know how to support the incoming executive or doesn’t understand that they will want and need support.

In this little article, I’ll introduce some of the high-level basics of how to prepare a successor:

GUIDE TO PREPARING A SUCCESSOR FOR LEADERSHIP

Good preparation begins with knowing what you are preparing for. 

Let’s assume you’ve read other writings on how to go through the succession planning and selection process. If you haven’t click here. [Succession_Planning_Outline] If you are preparing for an emergency succession, click here. [CEO_Emergency_Succession_Plan_Christian_Muntean] 

But just in case: You aren’t preparing for succession. You are preparing for the future of the organization. Succession is just part of that journey. Use your succession process to make progress on your journey. 

Determine where you want the organization to go and the kind of leader needed to get there. 

Seven Steps to Prepare a Successor

Pre-Succession

1. Clarify Your Values, Vision, and Strategic Priorities:

• Select for the future: Being clear on organizational identity and purpose is critical for evaluating the qualities needed in a successor.
• Confirm alignment: Ensure that the successor’s vision aligns with the company’s strategic goals and values.

2. Assess the Successor:

• Evaluate Skills and Gaps: Identify the successor’s current skills, capabilities, and areas for improvement.
• Stakeholder input: Use tools like 360-degree interviews to get insights from colleagues, subordinates, and superiors.

3. Developmental Assignments:

• Rotational Assignments: Allow the successor to experience different parts of the business, giving them a comprehensive view of the company’s operations.
• Challenge Projects: Expose the successor to complex projects that will stretch their abilities and prepare them for the challenges of the executive role.

4. Mentoring and Coaching:

• Mentorship: The current executive should actively mentor the successor, providing guidance, sharing experiences, and offering feedback.
• External Coaching: Consider hiring an external coach who can provide objective feedback and additional skill development.

5. Exposure to Board and Key Stakeholders:

• Introduce Key Relationships: The successor should regularly interact with the board of directors, major investors, and other key stakeholders (including the management team, key partners, and clients) to establish trust and rapport.
• Presentations: Allow the successor to present key projects or strategies to the board or partners to demonstrate their capabilities.

Post-Succession

6. The Handover: 

• Overlap: If possible, have a short period where both the current executive and the successor are active. This ensures a smooth handover and provides a safety net for unforeseen challenges.
• Communication: Keep the organization informed about the transition plan. This helps in managing expectations and reducing uncertainty among employees and stakeholders.

7. Continuous Learning and Support:

• Ongoing Professional Development: Continue to encourage or provide the executive with access to external, objective feedback and other professional development opportunities.
• Clear Expectations and Accountability: With the new executive, develop clear and measurable expectations in terms of performance, budget, authority, and strategy. Remove ambiguity to ensure the executive gains traction quickly. Check-in on progress, challenges, questions, and concerns regularly.

Each organization and succession dynamic is unique. This guide should be adapted based on the specific needs, culture, and challenges of the company.

Take good care,

Christian

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