STEVEN ZWANE | Succession planning: business lessons from US politics

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In the ever-evolving landscape of leadership, the importance of succession planning cannot be overstated. This principle is as crucial in business as it is in politics.

Recently, the failure of both the Republican and Democratic parties in the US to effectively plan for succession has become glaringly apparent, as, until recently, the nation faced the prospect of having either an 81-year-old incumbent president or a 78-year-old former president as the leading candidates in the upcoming election.

During my recent visit to the Harvard Business School Global Colloquium on Participant-Centered Learning, I was struck by how these leadership issues in US politics could offer lessons for South African businesses, particularly at the grassroots level and among small and medium enterprises (SMEs).

On July 21, Joe Biden withdrew from the race, underscoring the urgent need for effective succession planning and leaving Kamala Harris with limited time to build a winning presidential strategy, and highlighting a critical misstep.

Leadership gaps can lead to a lack of innovative thinking, diminished strategic direction, and an overall decline in organisational effectiveness. In politics, this translates to policy stagnation and a disconnect with the evolving needs of the electorate.

For SMEs the lessons are clear: without a pipeline of capable and prepared leaders, organisations risk continuity disruptions, decreased employee morale, and potential loss of stakeholder confidence. This is particularly pertinent in the context of entrepreneurial ventures where leadership transitions can make or break the enterprise.

The Harvard Business School Global Colloquium highlighted several key strategies for effective succession planning, which can be adapted to the South African context:

  • Early identification and development: SMEs must identify potential leaders early and invest in their development. This involves not just training but also providing them with opportunities to lead projects and take on increasing responsibilities.
  • Diverse leadership pipelines: A diverse pool of potential leaders ensures a variety of perspectives and ideas, fostering innovation and resilience. For SMEs, this means nurturing leaders from various backgrounds to reflect the demographics and values of the community.
  • Mentorship and coaching: Experienced leaders should mentor emerging ones, sharing their knowledge and experiences to prepare them for future roles. This transfer of wisdom is invaluable in ensuring continuity and preserving institutional knowledge.
  • Regular review and adjustment: Succession plans should be dynamic, with regular reviews and adjustments to account for changing circumstances and new challenges. This flexibility ensures that the organisation is always prepared for leadership transitions.
  • Transparent communication: Clear communication about succession plans builds trust and reduces uncertainty within the organisation. For SMEs, this transparency can help build confidence among employees and stakeholders in the leadership transition process.

Both political and business leaders need to prioritise succession planning. By doing so, they can ensure sustainable growth, continuity and the ability to navigate future challenges effectively.

For SMEs, succession planning is crucial for legacy building. Entrepreneurs must think beyond their tenure and consider how their vision and values will be carried forward. This involves grooming the next generation of leaders who can adapt to changing market dynamics while staying true to the core mission of the organisation.

The US political situation offers a poignant example of the consequences of neglecting succession planning.

As leaders in various fields, we must learn from this and implement robust succession strategies. By doing so, we can ensure that our organisations and institutions remain vibrant, innovative, and resilient in the face of change.

Effective succession planning can drive growth, stability, and community development.

In the words of the great Warren Bennis: “Leadership is the capacity to translate vision into reality.”

  • Dr Zwane is a Nelson Mandela scholar and managing executive: group corporate citizenship at Absa Group. He writes in his personal capacity.

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