Succession planning ensures a company can replace key employees when they leave. However, many organizations struggle with this crucial process, with some neglecting planning for the future altogether and others taking unfortunate missteps that could jeopardize their leadership continuity and organizational success.
Below, Forbes Coaches Council members explore common pitfalls for businesses that can lead to poor succession planning, from failing to identify and develop potential leaders early on to relying too heavily on outdated or biased criteria that don’t align with the company’s future needs. Read on for expert insights into these critical leadership errors and how to avoid them.
1. Falling Short In Defining Actionable Development Plans
Organizations often do a lot of work creating replacement inventories (lists of names on an organization chart), but fall short when it comes to defining actionable development plans. Even if they create a great plan, sometimes there is no accountability to actually make it happen. Organizations need to put more emphasis on succession readiness, not just identifying potential successors. – Kathy Bernhard, KFB Leadership Solutions
2. Prioritizing Superficial Qualities Of Potential Successors
A big mistake companies make in this area is prioritizing charisma and presentation over depth of knowledge, skill and alignment with the company’s values and culture. Focusing on the superficial qualities of potential successors can be devastating. It can lead to misalignment with corporate culture and values, lack of resilience and adaptability and sustainable leadership. – Col John Boggs, Fortitude Consulting, LLC
3. Following Bias Instead Of A Forward-Thinking Strategy
It is human nature for people to be drawn to the ones they’ve mentored, advised and groomed for specific roles. Unfortunately, while that leadership style, expertise and skill set may have been appropriate for one business strategy, it must be updated for the next growth stage. A bias toward an individual or a leader’s own legacy—rather than a forward-thinking strategy to meet the needs of the organization—can cause conflict. – Kinga Vajda, Execute Your Intentions, LLC
4. Neglecting Succession Planning Altogether
In small family businesses, a frequent error is neglecting succession planning—often altogether. The primary family leader hesitates to designate future roles out of fear of causing resentment and division. Consequently, these discussions are postponed until a significant event, such as their passing, leading to potential confusion and conflict. – Tawn Albright, Bowstring
5. Creating A Culture That Devalues Advanced Exit Notice
One of the mistakes organizations make with succession planning is that it rarely happens. When it does, it is haphazard. One reason is that employees are often concerned about giving advance notice of their exit. Organizations must embed succession planning into their culture to mitigate this so employees are comfortable. This helps ensure there is enough time to plan for continuity. – Fred Gatty, Gatts Consulting
6. Not Having Systems In Place To Identify Potential Leaders
The mistake organizations make is not having robust succession planning systems in place that enable them to understand the leadership capacity and capability of their existing pool of aspiring leaders. Having a system that identifies potential leaders, tracks their development and provides opportunities to lead gives organizations a head start in bolstering their leadership capacity. – Beaulah M. Chizimba, Limitless Nurses
7. Ignoring Planning Across Different Organizational Levels
One major mistake in succession planning is ignoring it across different organizational levels, risking productivity and morale. Companies must look beyond traditional candidates and include diverse, innovative thinkers to stay competitive. Integrating succession planning into the business strategy is crucial for ensuring long-term stability and readiness for the future. – Jessica Hill Holm, Hill Holm Coaching & Consulting
8. Fixating On Cultivating One Person Instead Of Many
First, organizations don’t start identifying and cultivating talent in our organizations early enough. The second big mistake is that we fixate on one person instead of cultivating a pool of talent. People leave organizations, family circumstances change, and others never quite develop into who you thought they would become. As such, it is important to plant many seeds and give them all time to grow. – Jim Vaselopulos, Rafti Advisors, LLC
9. Hiring For Required Competencies Rather Than Capacity
Many organizations fail to recognize the importance of developing and hiring for capacity versus just for competencies. Most organizations focus on the competencies required for the role. However, they seldom consider how mindset, ability to navigate complexity, appreciation for diversity and experience with adversity dramatically impact a leader’s effectiveness. – Saba Hasanie, OSC Leadership Performance
10. Not Establishing Leadership Pipelines At All Levels
A mistake in succession planning is not establishing a pipeline for leadership replacement at all organizational levels. Leadership turnover can lead to underestimated risks associated with disruption of productivity, team member morale and customer satisfaction. Recognizing the potential consequences of leadership gaps, organizations should prioritize succession planning before it’s too late. – Janet Miller Evans, Entevos LLC
11. Choosing The Wrong Person For Organizational Needs
Two concepts can guide leaders in making proper succession choices: the need for change and the selection of leaders from the center of the business. If change is needed, an outsider can be a better choice. If things are going well, an insider is generally the best option. In other words, choose people with direct experience in what makes customers happy and profits grow. – Jim Schleckser, The CEO Project
12. Focusing Solely On Current Performance, Not Potential
Too many companies focus solely on current performance rather than potential performance. By not considering future leadership capabilities and development needs, they end up at risk of overlooking high-potential individuals who could excel with the right support and growth opportunities. Effective succession planning needs to balance immediate performance with long-term potential. – Alba Contreras Rodriguez, FONS LLC
13. Thinking Too Narrowly To Cast A Wide Net
Organizations often think too narrowly about potential successors for key roles. With the importance of growth and innovation to a company’s success, leaders should challenge themselves to cast a wider net to identify candidates who can bring fresh perspectives and ideas. This approach will also diversify the leadership ranks over time. – Neena Newberry, Newberry Solutions
14. Assuming The People You Develop Want Higher Roles
One mistake organizations make is assuming that the people they are grooming for higher roles want higher roles. A top salesperson, for example, may not necessarily want to become a top sales manager. The two roles are entirely different: One is managing clients, and one is managing salespeople. The same is true of tech people: Someone who is killing it in the trenches with innovation may die in the C-suite with budgets. – Amy Feind Reeves, HireAHiringManager, Formerly JobCoachAmy
15. Only Practicing Succession With Current Person Absent
I find it surprising that succession planning is too often only practiced when the current person is absent. I strongly support the implementation of succession practice while the current person is present and dedicated to mentoring. The rotation of succession candidates allows for the evaluation of their experience and preparedness. I advocate it should happen at all levels. – David Deane-Spread, Metattude
16. Ignoring Incoming And Outgoing Leaders’ Identity Shifts
Rarely discussed, yet pivotally important, are the identity shifts experienced by the outgoing and incoming leaders. When the outgoing leader shows their willingness to let others step up and take on new responsibilities—while providing mentoring to support them—succession gets real. Incoming leaders get a chance to test their leadership in action while maintaining the respect of peers. – Jessica Hartung, Treelight Leadership
17. Neglecting Mentorship And Not Being Future-Focused
Succession planning needs to address all levels of the organization. It requires mentoring and coaching from the outset to support individuals’ development as they move up within the organization, not just waiting until they are in the position. It also needs an eye on the future to ensure development and planning is future-focused, not just based on replicating current skill sets and personalities. – Anita O’Connor-Roberts, AOC Consulting
18. Sticking With An Outdated Succession Planning Approach
A big mistake in our evolving generational workforce is being stuck in yesterday’s “tap on the shoulder,” “pay your dues” and “mirror my behavior” succession planning approach. Instead, ask what the decision-making assessment criteria and skill set should be in selecting “Tomorrow’s Leader of Choice” to ensure a successful and sustainable organizational transition into the future. – Deborah Vereen, THE VEREEN GROUP
