Succession Planning? ... Not on My Watch!

Home
>
Business Management
>
Succession Planning? ... Not on My Watch!

Succession Planning? ... Not on My Watch!

At first blush, it would appear there is no shortage of Succession Planning Advocates convinced in theory, the importance and benefits of corporate Succession Planning. In practice, however, real succession planning - or the overt lack thereof - runs juxtaposed to principle. The important question then is, "Why?"

In November 2002 I wrote an article *The Art of Succession Planning in which the argument in favor of a detailed Succession Plan was put to rest. Clearly, the advantage of proper planning is no argument at all. But try telling that to some company owners or today's high caliber CEOs. Those who rise to power, especially in large organizations, do so because they possess what's known as, the Royal Jelly. Most are born leaders with unlimited high energy, charisma and an innate psychological need to win, control and dominate. Although it would be easy for some to cast aspersions on such a profile, the fact is, these attributes are the stuff integral to power and for most of us, what we admire in our leaders.

Would it surprise anyone then, if those, predisposed to leadership and control, may find discomfort in succession planning? Simply said, any plan for succession, is a blueprint for the [call it anything you want] inevitable loss of power, control and prestige they worked so long and hard to achieve. After all, in the mind of a new CEO: They're going to be there forever?and/or ? If they leave, it will be by their choosing.

No leader is perfect. They make mistakes. For them, the last thing they need is the added pressure of a motivated Heir Apparent waiting in the wings with a blueprint for a much anticipated and inevitable transition to power. Reining CEOs are not sacrosanct from the ambitions of the Would-be-Kings. The net result? No Succession plan.

Where there's a Will? There's a Relative!

Wish if we could that each successive generation spawn greater leaders than the last. Successful family-owned and operated companies face succession challenges on two fronts. Not every child of a great leader is blessed with the Royal Jelly. [Teddy Kennedy spring to mind?] More often the next generation, either because of, or despite having lived a life of privilege, find themselves bereft of the right stuff and unequipped to lead. A good model for this is the British Monarchy. [Hang in there Lizzy!]

Succession planning for family-owned businesses can further be compromised when there are heir apparents from competing families. The right family heir to run the company may not [politically] be next in line and therefore succession planning is often avoided at all costs in order to circumvent a potentially divisive situation. Who will forget the bitter battle of two brothers for the McCain family frozen food empire?

Beware the Motivations of the Succession Planning Architect!

In ancient Rome, the Emperor Tiberius appointed Caligula to be his successor. A magnanimous gesture to say the least but not the real reason for his choice. Tiberius was more concerned about his legacy - fueled mostly by an unusually large ego.

By appointing Caligula, it was his hope the people of Rome would grow to hate the new ruler, to see him as the miscreant he was. They did. In so doing and at the expense of the Roman people, Tiberius believed he had done himself a great service by indemnifying an unquestioned personal legacy of benevolence and superior leadership.

Tiberius, however, didn't corner the market on self-serving succession planning. For more contemporary examples we need only look at the current Prime Minister of Canada, The Right [Honorable?] Jean Chrétien and his now agonizing Long Good-Bye.

Regardless of whether one voted for him or not, in a democratic society, the rein of any leader must eventually come to an end either by popular vote or for the good of the people. For dominant leaders, it is understood that stepping down is never an easy decision to make or to do.

That said, the political winds of change are not all that transparent and it's not unexpected for, in this case, Canadians, to count on a certain respectability or professionalism from their leader in the transition process. Sadly, the Prime Minister serves today as the quintessential example of bad Succession Planning.

Newspaper headlines that clearly point out a now Lame-Duck-Leader whose agenda for the next year is bent solely on a self-serving legacy at the expense of his own party and the country as a whole, should, but hasn't, deterred him.

For example, few would argue the need for stricter environmental guidelines but what other than his legacy is served by forcing the thinly veiled K.Y.O.T.O. bill through parliament when even his own cabinet find flaws in it and the need for further debate. Moreover, Liberals and Conservatives alike openly agree; smiting his nemesis and obvious successor, Paul Martin, by first forcing him out of his cabinet post and then changing the rules for corporate sponsorship where it impedes Mr Martin the most, is nothing short of vindictive. In fact, limiting financial corporate sponsorship and then funding future elections with taxpayer's money, I, as a taxpayer, could find it laughable if it were not so egregiously repugnant. Who benefits? Canadians? His Legacy? His ego? ...How Tiberiunesque! Bad Succession Planning!

Bottom Line:

Succession Planning is an integral part of what binds and brings balance to business, politics and even our personal lives. Like most disciplines, it's not as easy as it sounds. Nevertheless, like death and taxes, it is unavoidable and will come one day on our watch. What still remains our choice is how we handle it when it's our time? That too will reflect in our legacy.

* For a copy of the article *The Art of Succession Planning send an email request to paul@success150.com

About The Author

Paul Shearstone aka The 'Pragmatic Persuasionist' is one of North America's foremost experts on Sales and Persuasion. An International Keynote Speaker, Author, Writer, Motivation, Corporate Ethics, / Time & Stress Management Specialist, Paul enlightens and challenges audiences as he informs, motivates and entertains. To comment on this article or to book the Pragmatic Persuasionist for your next successful event we invite to contact Paul Shearstone directly @ 416-728-5556 or 1-866-855-4590

www.success150.com or paul@success150.com.

In The News:

Yahoo! News: Top Stories

Ford says CEO will work for $1 to get loans (AP)

AP - Ford Motor Co. will tell Congress that it plans to return to a pretax profit or break even in 2011 when the Detroit Three automakers' CEOs appear before lawmakers this week to request $25 billion in government loans.

Stocks bounce back after steep selloff (AP)

AP - Wall Street rebounded Tuesday, regaining some of the ground lost in the previous session's huge drop, as the potential for a bailout of the beleaguered auto industry helped calm investors. The Dow Jones industrials rose nearly 225 points, regaining a third of Monday's nearly 680-point plunge.

Ford Nov. sales drop 30 pct., Toyota falls 34 pct. (AP)

AP - Ford says its November U.S. light vehicle sales tumbled 31 percent amid a continued slump in consumer spending and tight credit markets. Toyota's sales fell 34 percent despite its extension of zero-percent financing on a dozen vehicles.

Thai airports to reopen after government falls (AP)

AP - Thailand's prime minister was ousted Tuesday after weeks of protests closed the capital's airports, stranding 300,000 travelers. Protesters promised to lift their siege, and international flights were expected to resume Friday.

Iraq's notorious 'Chemical Ali' given second death sentence (AP)

AP - A special Iraqi court sentenced Saddam Hussein's notorious cousin, "Chemical Ali" Hassan al-Majid, to death Tuesday after convicting him of crimes against humanity for his part in crushing the 1991 Shiite uprising in southern Iraq.

Obama seeks to assure nervous governors on economy (AP)

AP - President-elect Barack Obama pledged quick work Tuesday on an economic recovery plan to include tax cuts and increased federal spending, and told the nation's governors he wants their advice in designing a package to help their hardhit states.

U.S. official: India knew of plot on Mumbai coast (AP)

AP - India received a warning from the United States before last week's attacks in Mumbai that militants were plotting a waterborne assault on the city, a senior U.S. official said Tuesday as domestic intelligence officials said they were aware of a Pakistan-based plot.

Body-swap illusion tricks mind in new study (AP)

AP - Shaking hands with yourself is an amusing out-of-body experience. The illusion of having your stomach slashed with a kitchen knife, not so much.

Britney Spears to embark on `Circus' tour in March (AP)

AP - Britney Spears is taking her "Circus" act on the road.

Burress arrives at Giants Stadium (AP)

AP - Plaxico Burress arrived at Giants Stadium on Tuesday, facing the possibility that his career with the Super Bowl champions could be over and he could land in jail after accidentally shooting himself in the thigh at a nightclub.

Big Three automaker plans hit congressional desks (Reuters)

Reuters - U.S. automakers started to submit plans demanded by Congress as the Big Three's CEOs and lawmakers gird for debate over a $25 billion bailout the industry says it needs to survive.

Georgia votes in key Senate run-off election (Reuters)

Reuters - The state of Georgia votes in a run-off election for the Senate on Tuesday that will help decide whether Democrats gain a big enough majority in the chamber to ram through legislation virtually at will.

Thai court disbands ruling party (Reuters)

Reuters - Thai Prime Minister Somchai Wongsawat was banned from politics for five years and his party disbanded on Tuesday, spurring jubilant anti-government protesters to end their blockades of Bangkok's airports.

Oil retreats below $49 as brief rally fades (Reuters)

Reuters - Oil fell below $49 a barrel on Tuesday, after reversing early losses in response to a rally in U.S. and European shares.

India demands Pakistani hand over fugitives (Reuters)

Reuters - India demanded Pakistan hand over 20 of its most-wanted fugitives as a sign of good faith, while both sides on Tuesday tried to cool tensions over the Mumbai attacks before a visit by Washington's top diplomat.

Iraq's "Chemical Ali" gets second death sentence (Reuters)

Reuters - An Iraqi court sentenced Saddam Hussein's cousin "Chemical Ali" to death Tuesday for the killing of thousands of Shi'ites in a ruthless crackdown on their uprising after the 1991 Gulf War.

Two U.S. soldiers charged for abusing Afghans (Reuters)

Reuters - Two U.S. soldiers serving in Afghanistan have been charged with the abuse of Afghan detainees, the U.S. military said Tuesday.

Report: Chances of WMD attack in major city likely (Reuters)

Reuters - The chances of a terror attack on a major city somewhere in the world using weapons of mass destruction are better than even, according to a task force mandated by the U.S. Congress, The Washington Post reported in its Tuesday edition.

Thai protests to end after court ousts govt (AFP)

AFP - Thai anti-government activists on Tuesday agreed to end protests that have paralysed Bangkok's airports, after a court stripped Prime Minister Somchai Wongsawat of his post and outlawed the ruling party.

Pakistan offers 'joint investigation' into Mumbai attacks (AFP)

AFP - Pakistan offered on Tuesday to work hand-in-hand with India to track down those responsible for the Mumbai attacks but declined to respond immediately to a demand that it hand over 20 terrorist suspects.

Succession Planning? ... Not on My Watch!

Business Management Business Management