Tips for better succession planning: 7 common pitfalls to avoid

Succession planning is crucial in today’s business world. Often seen as a “big corporate thing”, small organisations face challenges like limited resources, informal structures and resistance to change when undertaking succession planning. However, it can no longer be viewed as a “luxury” for smaller organisations – with typically leaner workforces and the concentration of institutional knowledge among a few senior individuals, the risk of disruption is far greater.

Succession planning is essential in helping to mitigate this risk, enhance stability, and maintain a competitive edge. Whether you are new to this or have been at it for a while here are some common pitfalls to avoid:

Not defining your “why”

Many organisations start planning for the next generation of leaders without figuring out what their future leadership needs are. Without a clear idea of where the business is headed, what the organisation wants to be, and the challenges in getting there, you risk wasting time and resources. Ask yourself, “Potential to do what?” when identifying your successors so you are focusing on the people who can really lead your business forward.

Lacking a clear “what”

Choosing successors based on loyalty, familiarity, diligence or general impressions is more common than you might think (“He’s good, let’s promote him” – but what does “good” actually mean?). While the above are great qualities to have, if you are not clear on the specific skills, experience, behaviours and motivations needed for leadership roles in your organisation, you risk creating a sense of inequity, confusion and frustration among the workforce. Outline exactly what you need and use a fair, evidence-based process to find the right talent to fulfil those needs.

Focusing only on top roles

While CEO succession (and other C-suite roles) is of course a high-priority consideration, many organisations make the mistake of concentrating solely on high-level leadership roles, while overlooking the lower levels. Great leaders start in the middle management or entry-level spots, so do not leave these roles out in your succession planning efforts. Developing talent across all levels to build a pipeline that is ready to fill a variety of roles as needs arise.

Treating succession planning as a one-time task

If succession planning is just a box-ticking exercise, it would not do much good. Real succession planning is ongoing and should be viewed as a dynamic process rather than a once-a-year event identifying who is ready now, in two years or five years. Keep your plan fresh by regularly reviewing and updating it to align with market conditions, your business goals, and any changes in your team. This flexibility lets you stay ready for whatever comes next.

“Real succession planning is ongoing and should be viewed as a dynamic process rather than a once-a-year event identifying who is ready now, in two years or five years.” – Karen Chiew, Partner, Odgers Berndtson

Skipping development plans

An effective succession plan should include tailored plans for potential successors. Organisations at times set unrealistic expectations for individuals without offering the necessary training, mentorship, or experience to prepare for future roles – hoping leaders magically “perform” when given the opportunity. Providing them with timely assessment and feedback, and establishing clear, achievable development pathways help build confidence and competence in future leaders, whilst creating buy-in and ownership towards something they want.

Ignoring diversity

If you only look for people who remind you of yourself, you are likely missing out on fresh perspectives and new ideas. Diversity in leadership is critical for navigating complex markets and appealing to a broader range of talent. A diverse leadership pipeline brings in innovative ideas and makes your organisation more adaptable. Furthermore, failing to prioritise diversity can harm the organisation’s reputation, making it less attractive to top talent who value inclusive workplaces.

READ MORE: Succession planning: The secret ingredient to retain top talent

Force-fitting external models

It is easy to think that adopting another organisation’s successful model will work for you too, but that is rarely the case. Every organisation has its own needs, so adapt any external strategies to your own goals and culture. Start with critical roles that would create the biggest challenge if left vacant and adjust as you go. Consulting with experts can also help you build a plan that is tailored to your business.

By being mindful to steer clear of these common mistakes, you can make your succession planning more effective and keep your organisation ready for the future. Thoughtful, flexible planning will help you build a strong pipeline of leaders and stay competitive in the long run.

Stay tuned for our next article in which we will explore some of the challenges and potential resistance to overcome when introducing succession planning into an organisation.

About the Author: Karen Chiew is Partner at Odgers Berndtson, a global executive search firm.