The Discussion Forum - 2

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“SUCCESSION PLANNING”
Are the SME’s doing it right?

DEFINITION of 'Succession Planning'
A strategy for passing each key leadership role within a company to someone else in such a way that the company continues to operate after the incumbent leader is no longer in control. Succession planning ensures that businesses continue to run smoothly after the business’s most important people move on to new opportunities, retire or pass away.

https://www.investopedia.com/terms/s/succession-planning.asp#ixzz51gn4d2z8 

It is inevitable that every organization should have a succession plan in line for a smooth and long term operations of the organization. When it comes to Public Limited companies’ succession plan will be decided by a board of directors and via a formal procedure.
But what happens for SME’s when the leader in command wants to pass on the baton of the organization?

It is the common practice among the SME’s that the company runs on the founding leader’s vision for the company. And that vision always based on the passion closer to the heart of the leader. The best succession plan creates when the leader is able to communicate his long term vision and the passion effectively to his fellow team members.

It is also the common practice that leader delegate the tasks and create his Special Task Force (STF) from the full team to execute the business operations on his behalf. This STF can be an individual or a few selected team members.

When this STF is working on the front line two main things happens,

Ø  This STF gains control and mastering the business 
Ø  A set of followers rallying around them

This weakens the controlling power of the leader of the company and creates a dependency over his created team. If by any chance a disagreement or disengagement occurs between the leader and his STF, it can lead for a drastic breakdown in the management. Either the STF leave the company which will the leader will be in a helpless situation if he is not aware of the day to day business operations or else the STF can start a new business venture similarly which will be a competitive threat for the company. This has become a practical issue for most of the SME’s.

So it is time for us to address the question,


Does a leader really need to create a Special Task Force (STF) as a succession plan to take forward the company or not? 

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