3.5 Factors That Delay Succession Planning

“He’s gone!? He’s had a massive heart attack and he’s gone.? What am I going to do?”? This is never the phone call you want to receive from a client at 6am on a Monday morning.?

While this client was dealing with the heartbreak of losing her good friend and General Manager, she also has the immediate task of figuring out how her operation would continue to run without him.?

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Little did she know that this traumatic loss was about to reveal all kinds of hidden weaknesses in her organization…

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The Catch22?

If I had a dollar for every small business that has reached out to me over the years inquiring about Succession Planning, well, let’s just say I’d have enough money to purchase a Breville Dual Boiler espresso machine I’ve had my eye on.

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But if I had a dollar for every small business that has actually implemented a Succession Planning Strategy, I’d be lucky to buy a Starbucks latte.

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The Catch-22 is that while small businesses are the most vulnerable when losing high-performing employees (with lots of cross-over responsibilities and historical knowledge), they are also the least likely to spend precious resources on building their bench.

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Succession planning can be particularly challenging for small businesses to undertake due to three factors they often face.

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?3? FACTORS THAT DELAY Succession Planning

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#1) LIMITED RESOURCES

Small businesses typically have limited financial and human resources. This can make it difficult to invest in comprehensive succession planning programs.

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The cost of hiring external consultants or implementing sophisticated software solutions may be prohibitive for smaller budgets.

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As a result, small businesses may struggle to allocate the necessary time and funds to develop and execute effective succession plans.

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#2) TALENT IDENTIFICATION AND DEVELOPMENT

Identifying and developing suitable talent for key roles is a significant challenge for small businesses. Unlike larger corporations, small businesses may have a smaller pool of employees, making it challenging to find individuals with the right skills and potential for leadership roles.

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Additionally, smaller teams may lack the diversity of skills and expertise needed to fill critical positions, making it crucial for small businesses to invest in training and development programs to groom internal talent.

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#3) OWNER-DEPENDENCY AND INFORMALITY

Many small businesses are highly dependent on the owner's skills, knowledge, and, maybe more important, connections and relationships.

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This owner-centric structure can create difficulties when planning for succession, as the owner may be deeply involved in day-to-day operations and decision-making.

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The informality of many small businesses, with less formalized processes and documentation, can complicate the transfer of knowledge and responsibilities.

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Succession planning requires a structured approach, and the lack of formal systems can hinder the smooth transition of leadership roles.

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A POSSIBLE 4TH FACTOR?

We would be remiss to add a possible fourth factor to this list and that would be…Succession Planning just isn’t URGENT!

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When you think of all the tasks and responsibilities on a leader’s plate every day, there really is only enough time to deal with the urgent priorities.?

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Unless you’ve had a traumatic loss like my client had, knowing who your successors are seems like a “someday” and “eventually” task.

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We know it’s important, it’s just doesn’t need to happen today.?

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But like most important things we delay, the moment they become urgent (a health diagnosis, a financial crisis, etc.), we are filled with regret that we didn’t take the preventative measures we should have.

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In the next article, we will take a look at how to move Succession Planning further up the list to avoid a potential disaster.

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~ Nancy Roberts

The DISC Wizard

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“One of the things we often miss in succession planning is that is should be gradual and thoughtful, with lots of sharing of information, knowledge and perspective, so that it’s almost a non-event when it happens.”

~ Anne Mulcahy, former chairperson and CEO of Xerox Corporation?

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