Why is succession planning so challenging, even when it is crucial to an organization’s mission and sustainability?
Everyone knows having a succession plan and a planning process is important. But knowledge doesn’t always lead to action. Why is succession planning so challenging, even when it is crucial to an organization’s mission and sustainability?
Succession planning requires time and careful consideration. Starting from scratch can be daunting, especially when you’re unsure what should be included in the plan, who should be involved, how deep the plan should go, and how often it should be reviewed. These are just a few questions that may arise as you consider succession planning.
Step 1: Start with why. Finding alignment on the purpose gets everyone moving together toward a common vision.
Why do we need a succession plan?
- Organizational stability and continuity. Ensure the continuous delivery of programs and services.
- Preservation of mission and vision. Maintain the founding principles and values of the organization.
- Prevention of leadership gaps. Avoid disruptions that could impact the organization.
- Leadership development. cultivate leaders at various levels, keeping staff ready to take on higher responsibilities. This also boosts morale, retention, and engagement.
- Risk mitigation. Reduce the risk of disruption during leadership transitions by planning and preparing.
- Stakeholder relationships. Maintain strong relationships and consistency with stakeholders, donors, and those served by the organization.
- Organizational resilience. Better prepare for change, enabling quicker and easier adaptation.
- Sustaining culture. Uphold a positive, faith-based culture through committed leadership at all levels.
Step 2. Identify who. Succession planning frequently extends beyond the CEO. Deciphering who should be at the table is key to the plan’s success.
Who are we creating a succession plan for and who is responsible for designing and implementing the plan?
- Key personnel. Strategically considering key personnel who are driving the mission and vision of the organization, and their skill sets, directs the plan. While this will primarily involve the C-suite, careful consideration may reveal other critical personnel.
- Board. The Board is responsible for the CEO’s succession plan. Additionally, the Board typically sets expectations for the C-suite’s succession plan by directing the CEO. The Board should actively monitor the plan’s progress, with updates on changes regularly or at least once a year.
- The CEO is responsible for implementing and executing the plan.
- Human Resources. Human resources professionals are key partners for identifying potential, developing future leaders, and designing career ladders.
- Many organizations list MHS Consulting in their CEO succession plan for unexpected departures. MHS Consulting can provide interim support and serve as a trusted advisor.
Step 3: Finish with how. It has been said that a goal without a plan is just a wish.
How do you write and implement a succession plan?
- Start with a Toolkit. Use the Succession Planning Toolkit from MHS Association available to members on MemberHub. The Toolkit covers all aspects of succession planning and can serve as the foundation for your plan.
- Identify potential internal candidates for each leadership position. If no internal candidates are available, establish processes for identifying and/or hiring external candidates.
- Implement a leadership development plan for internal candidates, including training, mentoring, and increasing responsibilities. Each candidate should have a specific plan with clear goals.
- Succession planning should begin at least 3-5 years before anticipated transitions, such as retirement. Some organizations prefer a longer timeline or always maintaining a pipeline of capable leaders.
- As with most things, adapting to changing circumstances is necessary. Being mindful that the plan serves the mission can drive strategic adaptation.
Your succession plan supports your organization’s commitment to serving the community and all stakeholders. Having a succession plan with a focus on stability, integrity, transparency, and sustainability ensures that your organization’s mission and services will continue uninterrupted.