Succession Management Need Not Be Stressful

Here’s how small business can implement and follow a winning plan

When it comes to succession management, many companies (especially startups and smaller companies) may not even know where to begin. Deciding who to promote is not always an easy call; just because a valuable employee possesses the skills and talents to exceed in their current role doesn’t mean they will see the same results in an executive leadership position.

While many business leaders and owners may inherently want to promote based on familiarity (e.g., men hiring/promoting men), this biased temptation can often override more logical options when it comes to choosing who to hire or promote regarding succession.

Even so, succession management doesn’t have to be as stressful as some may think. Implementing certain systems or processes within your company such as training courses or other educational materials, mentorship or leadership development programs, and providing hands-on experience with other departments or teams to guide employees through your company’s internal succession management system can be one of the most educational ways of teaching new leaders.

In this article, I want to go over some of the best ways your small business can implement and follow a winning plan for succession management.

Mentorship programs are some of the most valuable ways to offer employees knowledge and career development options. Simultaneously, they provide leaders with opportunities to identify their team members’ motivations, strengths, and weaknesses, helping them more quickly identify which employees could potentially be a quality candidate for a management position in the future of their company’s leadership succession.
 
According to CNBC, 71% of people participating in mentorship programs at work say that they feel their company provides quality career advancement and development opportunities for them. To add to this, LinkedIn’s 2021 Workplace Learning Report states that 94% of employee respondents said they would be more inclined to stay with a company for a longer period of time if they were offered opportunities to grow and develop professionally through mentorship or leadership programs.

Mentorship programs provide a fantastic benefit for small businesses: it allows them to get to know their employees on a more personal and individual level. in addition to starting the management identification process early on. With these opportunities readily available, especially earlier on in an employee’s career, those same employees are much more likely to feel confident vocalizing an interest in future management positions. This, in turn, gives employers broader insight earlier on into which candidates may be best suited to succeed an internal leader when the time inevitably arises.

While offering people opportunities to jump in the proverbial deep end can rapidly push them out of their comfort zones and into fearful territory, it remains one of the most beneficial and streamlined ways to identify quality leaders. It allows employers and mentors alike to witness which candidates are willing to stretch beyond the comfort of their perceived limitations and adapt, be it individually or in a team setting. Generating a secure environment that invites employees to try new things, go beyond their comfort zone, and learn from mistakes or successes — whether their own or others’ — can be used as a window to scout key candidates for succession management.

For example, in 2003, Dave Selinger ran his own e-commerce business online selling coffee makers. His business was performing so well that he was scouted by Jeff Bezos (yes, that Jeff Bezos) to lead Amazon’s new data mining R&D team. Selinger’s expertise, however, was in software development — not data — and he reportedly turned down Bezos some half-dozen times before agreeing to lead the department. Selinger went on to recognize an opportunity to generate revenue for Amazon by selling advertisement space, which would go on to become Amazon’s product recommendation algorithm. Though Selinger inevitably left Amazon, he has since gone on to found his own company, Deep Sentinel, of which Bezos is now a lead investor.

Fear is innate in all of us. It is an instinct that remains in our DNA to improve our chances of survival. But pushing beyond our instinctual fear is one of the best ways to grow. It teaches us how to handle challenging situations, expand our resources, and improve our creativity: all key values of any successful leader businesses want in a candidate primed for succession management.

Once an employee’s management skills have been evaluated, and there’s a final verdict on whether or not the individual is ready to move up in your company’s succession plan, there will only be one of two answers: Yes or No. When talking with those considered a good fit for succession, it can be a straight and simple conversation. For some leaders, especially at small businesses where teams are often smaller and like a second family to employer and employee alike, it can be difficult to tell someone that they may not be the proper fit for the role.
 
When an employee is not ready to make that jump into a bigger role, this tough conversation can have a number of outcomes. Having the ability to communicate with them honestly in these situations, without souring the mentee’s attitude towards their own career development, can be challenging. Rather than slamming the door on leadership and their dreams, explain that this door is closed today, but you want to leave the opportunity for the future. You never want to leave a conversation with a mentee having them feel like opportunities to grow are no longer present, otherwise you risk the conversation sounding more like an exit interview.
 
As Gallup’s chief scientist, Dr. James K. Harter reports, 75% of employees voluntarily quit their jobs because of something their manager adversely influenced. Managers who will not — or in some cases, cannot — change the outcome of employee satisfaction see higher turnover rates than others. It’s important to note that out of that 75%, nearly 32% quit voluntarily because their manager did not advocate for internal promotions or job growth within their company.
 
By talking with employees and communicating that they may not have management skills for a specific leadership role, you can suggest that their skills may benefit other company projects or departments. In that way, you could even create a new business avenue for them. Communicating what other responsibilities may be a good fit for someone who may not be good for an open management role also lets them know that you’re still taking their best interest into account. No one ever wants to hear they can’t do something, but by suggesting alternatives, you can simultaneously acknowledge and replace their doubt in your company with the confidence that their employer, leaders, and mentors are looking out for them.

Regardless of whether or not individuals end up being a good fit for their future management roles, it’s important for them to continue to ask questions and learn from their mentors. Having too much information is not a bad thing. Communicating any questions, whether basic or complicated, also allows for leaders to understand individual thought processes and your perspective. This allows for better mentorship and guidance in the long run.

Overall, succession management at its core is about allowing mentees the space to be creative and challenge their abilities. Whether it’s through coaching on how to be a better manager, asking questions, or simply being willing to have hard conversations, the best way to approach developing a strong succession management map is communicating expectations, giving honest feedback, and providing alternatives when necessary.

Being transparent with individuals and working with them to adapt and grow to new positions will have your small businesses successfully mastering the art of succession management before you know it.