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:

---

PRACTICE MANAGEMENT: What Brokers Should Know Before They Go
CNNMoney.com - 4 hours ago
( Kristen McNamara writes Practice Management, a column that looks at ways financial advisers can build and improve their business. ...

MedaSorb Technologies Corporation Announces Management Changes
CNNMoney.com - 3 hours ago
These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. ...

Boston Globe
Lehman Private-Equity Arm Gains New Investment
Wall Street Journal - 22 hours ago
The business has $4.5 billion under management, and holds stakes in more than a dozen portfolio companies including a Spanish railcar manufacturer to a US ...
Lehman Deal Spins Off Part of Private Equity Unit Into Independent ... New York Times
Lehman deal on private equity close Reuters
Lehman Said to Be in Talks to Sell Fund to Managers, Reinet Bloomberg
FINalternatives - RTT Newsall 95 news articles

HE-5 Resources, Corp. Announces Reorganizational Changes Are ...
CNNMoney.com - 7 hours ago
New Management stated the following: "We are very pleased to begin our new operations and to share our visions and exclusive development program whit HE-5 ...

United Press International
Management Consulting in the Government?
Newsweek - Jan 8, 2009
In the world of management consulting, high-powered and often expensive contractors infiltrate all levels of a company to determine how it can run more ...
Chief Performance Officer: Nancy Killefer TIME
Obama Appoints Government Performance Officer Washington Post
Obama's performance czar has tried to improve IRS The Associated Press
CFO.com Magazine - GovExec.comall 486 news articles

Amazon’s New Management Console Treads Lightly
GigaOm, CA - 3 hours ago
Today, Amazon ( s AMZN) Web Services announced a management console that illustrates how carefully Amazon is playing its role as a platform provider. ...
Amazon Web Services Launches Management Console CMSWire
Amazon Web Services releases web-based EC2 console CNET News
Amazon EC2 launches Web-based management console Examiner.com
ReadWriteWeb - PC Worldall 29 news articles

Peregrine management drops buyout plan, shares fall
Reuters - 9 hours ago
JOHANNESBURG, Jan 9 (Reuters) - South African wealth and asset management firm Peregrine Holdings Limited (PGRJ.J) said on Friday a management buyout plan ...

University of California regents may freeze management pay
Bizjournals.com, NC - 5 hours ago
A pay freeze for senior management of the University of California system will be considered by the UC Board of Regents during a Jan. 14 teleconference. ...

JPMorgan Asset Management's Bull SA Stake Falls To 1.72%
CNNMoney.com - 5 hours ago
PARIS -(Dow Jones)- JPMorgan Asset Management's stake in French IT company Bull SA (BULL.FR) has fallen through the 5% threshold to 1.72%, according to a ...

Ipswitch WhatsUp Gold Network Management Gives Back in 2009
MSNBC - 12 hours ago
LEXINGTON, MA - Ipswitch, Inc.'s Network Management division, the leading developer of affordable and easy to use network management software, WhatsUp Gold, ...

management - Google News

My Companys Leadership Sucks!

Maybe it's the season or just a more buoyant job market; but lately I'm sure involved in a lot more discussions about leadership.I'm receiving more requests for... Read More

Using Employee Opinions Effectively When Designing HR Programs

Using Employee Opinions Effectively When Designing HR ProgramsEmployee opinion is one of the most powerful resources available to human resource professionals. But what are the best methods... Read More

Important Communication Tips For Managers

The following tips will help you communicate more effectively with your employees:1. Let employees know that having feelings is okay. Feelings are facts and need to be... Read More

Employers - Protect Yourself from Custody Battles that Hold Your Company Hostage

Child custody? How'd that get to be an employer's concern?When an employee faces child custody litigation, it will effect their ability to do their job. And it... Read More

Employee Motivation: Make Everyone A Cheerleader For Your Company

Do you manage by walking around? What do you see? People excited about their job or people just going through the motions? Here are seven ways, that... Read More

Catch Your Staff Doing Something Right

A long time ago, I learned something about being a manager that has proven to be one of the most valuable lessons I've ever heard.You can't manage... Read More

Virtual Assistance: A Money Saving Opportunity For Employers

What is a Virtual Assistant? A Virtual Assistant is a highly skilled, independent entrepreneur who provides business services in a remote or virtual environment. Some have used... Read More

How To Delegate for Fun and Profit

Ah, the wretched pain of delegation. It comes easy to some people. But others ? you know who you are ? would rather undergo a double root... Read More

Choices in Appointing International Managers

Globalization is requiring companies to make important choices about how to deploy international managers. The costs of making the wrong choice are heavy both economically and in... Read More

The Power in Praising People

One of the keys to success is to have successful relationships. We are not islands and we don't get to the top by ourselves. And one of... Read More

Optimizing Your Cash Flow With Proper Accounts Receivable Management

Businesses miss on growth opportunities and even close their doors every day, not because they aren't profitable enough, but because they are strangled by poor cash flow.... Read More

A Rare Leadership Skill: Dealing With People Who Want Out By Offering Crowns For Convoy

As a leader, you'll inevitably be faced with people wanting to leave your team or organization. Dealing with the challenge is critical for your leadership success. Your... Read More

Show Me the Money!

Are you ready to raise money for your startup?Leslie Mitts, Managing Practice Leader at the Wharton SBDC and Lead Advisor for the Wharton Venture Initiation Program, tells... Read More

ISO 9001 2000, Getting Started on The Route To Registration

ISO 9001 2000, Getting startedBefore starting the ISO 9001 2000 route to registration you will need to have the top management on board. This can be achieved... Read More

Setting a Pitiful Example: Twenty-six Warnings to Heed *

TO: All Parents [and Employers and Managers]From: Your Child and/or EmployeeDate: The present timeRe: Don't Spoil me; Teach Me1. Don't spoil me. I know quite well that... Read More

Employee Discipline: How to Nip Problems in the Bud

Are you uncomfortable with delivering disciplinary action, even involving employees you know deserve it? You're not alone. Disciplinary action is one of the least favored tasks a... Read More

3 Ingredients of Highly Profitable Organizational Change

As waves of organizational change sweep across the business landscape, a huge question arises: What must a leader do to make sure change produces highly profitable results?To... Read More

Productivity Through Positive Reinforcement

Most people just want to be appreciated. If you're a manager, that's something to seriously think about as you set the tone for maximum productivity.Ever work for... Read More

Leading Meetings: The Top Three Challenges

What do people really find challenging about leading meetings? Here are the top three questions that keep on cropping up followed by guidelines or simple ways to... Read More

Service Level Agreement (SLA) Boot Camp

Service Level Agreements, or "SLA's" are tricky but useful mechanisms for managing the risk of an on-going relationship with IT service providers. Unfortunately, most SLA's that show... Read More

Proven Secrets to Keeping Your People and Increasing Your Profits

Why are people changing jobs so quickly these days?Here are a few reasons why:They have a boring job therefore they feel they are not achieving anything.They have... Read More

Book Summary: Mind Your Own Business

A maverick is an independent person who will not go along with the other members of a group (Oxford ESL Dictionary). This book provides priceless stories and... Read More

Take The Guesswork Out Of Problem Solving

In today's chaotic world and uncertain economic times too many good people are burdened by too many problems that seem insurmountable and too many businesses find it... Read More

The High Cost of Employee Turnover Among Project Managers

Imagine for a moment this scenario from a frustrated Senior Manager of a large pharmaceutical organization: "Our organization has experienced a large turnover among project managers in... Read More

Behavioral Extensions and Its Implications at Workplaces

The study of Behavioral extension involves investigating the source of an actual demonstrated behavioral action. According to Behavioral Extension belief, no action can be seen as a... Read More

Have You Fixed the Broken Window?

Left alone it doesn't take long for a building with a single broken window to rapidly become a building with many broken windows. Fixing problems when they... Read More