Personal Finance

Why succession planning is key to the stability of institutions

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Firms and political parties should have succession plans in place so that their vision is not lost. FILE PHOTO | NMG

Kenya’s corporate and political scenes have witnessed a lot of changes in leadership with varied reasons for the changes.

Some of the exits in leadership are due to expiry of tenure. Others are due to termination where shareholders feel that the leaders they put in place do not have capacity to manage the organisation.

While in some other cases, changes in leadership are caused by resignations where the exiting leader does not desire to continue managing the organisation for a varied number of reasons.

I will cite the recent case where Independent Electoral and Boundaries Commission Commissioner Roselyn Akombe resigned just days to the repeat presidential election citing a number of reasons.

The frequent exits of leaders and managers in businesses, political parties, national institutions and even religious institutions, calls for proper succession planning to avoid disruptions that may threaten the very survival of the institutions. Often, institutions find themselves in a period of uncertainty when a leader suddenly exits without a proper succession plan in place.

Experts advice current leaders to begin identifying and developing potential next generation leaders who would take over in the event of an exit.

Some call it mentorship, but succession planning is much more than mentorship, it entails an intricate process of identifying a successor or pool of successors and developing them in order to replace exiting leaders at the right time.

It is really not about the new leaders carrying the mantle of the exiting leaders, but rather about the new leaders carrying the vision of the institution.

Therefore, a succession plan must be based on the institution’s vision and strategic plan otherwise it may disrupt the institution. In choosing a successor managers look at several things in the potential successor, but what should be of prime importance is ability to carry on the institution’s vision.

READ: Why succession planning is vital for wealth preservation

Succession planning is important no matter the type of institution in question. It is as necessary for the business sector as it is for political parties.
Political parties and leaders should have succession plans in place so that their vision is not lost. It is necessary in our national institutions.

However, succession planning for national institutions is more regulated as various laws stipulate what should happen in the event of a vacancy.
Nevertheless, national institutions should have organisational succession plans to cater for certain vacancies and or exits in top management.

Vital national institutions should not be held at ransom just because of the exit of one or a few members. Proper succession planning will ensure that activities are not disrupted. Religious institutions can also have succession planning.

This should be included in the their various laws so that succession politics is minimised.

The institutions should begin by identifying successors and begin to train them. It is also important to communicate to other members of the organisation of the potential successor so as to avoid succession politics.

Proper succession planning ensures that an organisation’s activities continue undisrupted and minimises succession politics guaranteeing survival and growth.