How To Build A Culture Of Succession in 3 Easy Steps

Far too often, we think about building a culture of succession as a C-Suite problem. We all agree it’s a smart strategy to have our board of directors and CEO?develop a succession plan?for high-level positions. But it is also not enough to build a strong company culture of succession.

In today’s world of increasing competition, regulation, and shifting economic conditions, succession planning needs to happen at?every level of your organization. When you build a culture of succession, you are making a promise to your board, your team, and your members. Succession planning at every level is your best offense for protecting margins, attracting talent, and driving results.

A little over a year ago, I was asked to work with a financial services company on their C-Suite succession plan. When I met with the CEO and other members of the Executive Level Team and began to talk about strategy, timeline, and areas of concern, it was clear that they needed so much more than a successor to the CEO and CFO.?They needed next-level leaders at the middle management level and front-line personnel as well – they needed to build a culture of succession.

Succession plans have one major purpose: to ensure the long-term success of the organization. Therefore, when you ask yourself where the critical roles are and which positions are vital to serve members, ensure compliance, and fuel growth, you will find that they stretch far beyond the C-Suite.

Don’t get me wrong, having a succession plan for the C-Suite puts you ahead of most organizations. Just look at these stats:?less than 35% of organizations have a formalized succession plan for C-Suite Executives, and 60% of CEOs fail within the first eighteen months.

If you really want to win this succession game and give your organization the best shot at success, then you need to create a culture of succession. You must build ownership at every level of your company and create engagement at every turn.

So how exactly do you build a culture of succession?

Own It

First and foremost, as the CEO and Board of Directors, you need to own it. You need to decide that building a culture of succession is a priority you are taking on and not delegating to anyone else. Human Resources may support you, and other leaders in the organization may have a role, but if you want succession to be ingrained in your culture, you need to decide the buck stops with you.

Your team will focus on what you focus on. So if you put emphasis on succession planning, they will too.

Engage The Team

And speaking of your team, succession planning should be a strategy spoken about from the top, but with actions and ideas driven bottom up. Once you make the decision to create this culture of succession, ask your team to help you do it.

People support what they help create.?Set up meetings, town halls, and focus groups that give your team the opportunity to answer questions like:

• How can we develop next level leaders in our organization?
• What talents and skills do you value most in a leader?
• What are the most critical roles in our organization that you need to identify successors for?

Succession planning, while it has a strong return on investment, requires heavy lifting, and you need everyone in the company to care about it, focus on it, and get engaged to help you?make it happen.

Reward It

And last but not least, reward it. Ensure that succession planning is part of performance reviews and that every promotion that happens sees a person advancing who has already trained and prepared their successor to take their place. Highlight, acknowledge, and openly reward those that are investing in developing others on your team.

As a leader, it is critical that your actions match your words. If you say that succession planning is important, then your daily actions need to reflect that philosophy.

There is so little you can control in today’s marketplace. So little. But the one thing you can control is the talent of the people who surround you. Invest in developing your team and building a culture of succession, and you will see long-term success and return on investment.?

Summing Up

In today's fast-paced and ever-changing business landscape, building a culture of succession is no longer an option, but a necessity. While many organizations focus solely on developing a succession plan for their top executives, a true culture of succession requires a comprehensive approach that includes every level of the organization.

Building a culture of succession is an essential part of any organization's long-term success. By focusing on the development of the next generation of leaders at all levels, organizations can attract and retain top talent, protect their margins, and stay ahead of the competition. It requires a comprehensive approach that prioritizes the development of all employees, and a commitment from leadership to make it a priority.

Ultimately, investing in a culture of succession is an investment in the future of the organization, and one that is sure to pay off in the years to come.