Succession Planning: Lessons from Global & South African Cases

This blog covers why succession planning matters, case studies, mistakes others have made, and how you can avoid them to plan for the future.

Future-Proof Your Business: The Power of Succession Planning

Let’s face it: we don’t like thinking about change, especially when things seem to be going well. But when it comes to business leadership, change is inevitable. People retire, move on to other opportunities, or sometimes just aren’t the right fit for the job anymore. So, how do we keep things running smoothly when these transitions happen? Well, a step in the right direction would be through succession planning. 

Succession planning might sound like just another corporate buzzword, but in reality, it’s about protecting your business from future chaos. Companies that fail to adequately plan for leadership transitions often find themselves facing operational disruption, loss of shareholder confidence, and even financial losses. And without it, you too could be left scrambling, just like a few well-known companies have been. Take a recent example from South Africa: Pick n Pay. They had to recall their former CEO, Sean Summers, from retirement because the successor couldn’t handle the job. Yes, you read that right; they brought back a retired CEO. Not exactly a glowing endorsement of their succession planning, right?

Today, we’ll be looking at why succession planning matters, not just for big corporations but for businesses of all sizes. We’ll also look at some big mistakes others have made and how you can avoid them. After all, no one wants to be in a position where they’re frantically calling someone back from retirement.

Why Succession Planning Matters (It’s About More Than Filling Seats)

A well-structured succession plan not only prepares for emergencies but also aligns leadership development with the organisation’s long-term strategy. In essence, succession planning is about safeguarding the future of the company. It ensures that the organisation remains resilient, agile, and able to navigate challenges when leadership changes inevitably arise.

Here’s the thing: without succession planning, businesses are left scrambling when key leaders leave. No one wants to be the company stuck in a crisis because the CEO retired or the head of operations suddenly moved on, and no one thought about who would take their place.

When there’s no plan, everything from operations to employee morale takes a hit. Employees lose confidence, stakeholders start asking questions, and customers begin wondering what’s going on. It’s the perfect storm of uncertainty, and guess what? It’s all avoidable with a little forward thinking.

In fact, according to CHRO South Africa, the risks of poor succession planning are numerous, from lost leadership continuity to decreased employee engagement and damaged brand reputation. You don’t want to hire an external candidate who doesn’t quite fit into the company culture, do you? That’s another risk you can avoid by planning ahead.

Real-Life Succession Failures (And What We Can Learn From Them)

Let’s talk about some companies that learned the hard way. Remember when Uber’s CEO Travis Kalanick stepped down in 2017 amid a firestorm of controversy? They had no internal successor ready, so they had to go on a very public and very drawn-out hunt for a new leader. During that time, their brand took a hit, their market position wobbled, and trust eroded. All because they didn’t have a plan.

Then there’s General Electric (GE). When their CEO Jeffrey Immelt left in 2017, the cracks in GE’s succession planning showed. The company went through two more CEOs in just two years, creating a leadership vacuum that shook investor confidence and damaged their performance.

What’s the lesson here? No matter how big or successful your company is, failing to plan for leadership changes can be a costly mistake.

Closer to home, we’ve got Pick n Pay. As one of South Africa’s biggest retail chains, you’d think they’d have a tight grip on succession planning, right? Well, not quite. When their CEO struggled to lead effectively, the company made a rather desperate move; they called Sean Summers, a former CEO, back from retirement.

Now, while Summers did a great job in his time, this move screamed, “We didn’t plan for this!” Having to reach back into the past for leadership shows that they didn’t adequately prepare their next leader. This kind of move can shake investor confidence and make people wonder if the company knows what it’s doing at the top.

succession planning
Contact Competence SA to help you create a robust succession plan.

Common Succession Planning Mistakes (And How to Avoid Them)

Here’s where most companies go wrong. They think of succession planning as a last-minute fix instead of a long-term strategy. 

Here are a few common mistakes that companies make, according to ExecOnline:

  1. Planning Only for Emergencies: Some businesses only think about succession when something goes wrong. A true succession plan should be ongoing, constantly preparing for the future.
  2. No Buy-In from Senior Leadership: Succession planning isn’t just an HR task; it needs full support from top leadership. If the board and executives aren’t on board, you’ll never have the resources or commitment you need.
  3. Neglecting High-Potential Talent: Too many businesses overlook the rising stars within their ranks. These high-potential employees could be your future leaders if you invest in them now.
  4. One-Size-Fits-All Approach: Leadership roles require different skills. Tailoring development programs for each role is key to making sure your future leaders are fully prepared.
  5. No Clear Timeline or Goals: Without setting measurable goals and timelines, succession plans become vague and ineffective. You need to know when someone is ready to step into a role and what success looks like.

How to Do Succession Planning Right (It’s Easier Than You Think)

Now that we’ve looked at what not to do, let’s talk about how to get it right. A good succession plan is like a roadmap for the future, and here are five simple steps to get you started:

  1. Identify Key Roles: It’s not just about the CEO. You need to identify which roles are critical to the success of your business. This could be department heads, technical specialists, or even your top salespeople.
  2. Evaluate Internal Talent: Look at who’s already in your company. Who’s got potential? Who’s showing leadership skills? Regular talent reviews will help you spot the future stars.
  3. Create Tailored Development Plans: Once you’ve identified your future leaders, make sure they’re prepared. Tailor a development plan that helps them grow into the role they’re destined for.
  4. Engage Senior Leadership: Get the top brass involved. Succession planning should be a key part of your business strategy, not an afterthought.
  5. Monitor and Adjust: A succession plan isn’t a “set it and forget it” thing. You need to constantly review progress, make adjustments, and ensure it’s aligned with your company’s evolving needs.

Succession Planning Is a Lifeline, Not a Luxury

Look, none of us know exactly what the future holds, but that doesn’t mean we can’t prepare for it. Succession planning is one of the smartest moves a business can make to ensure continuity, stability, and growth, even when leadership changes. Whether you’re a global giant or a local success story like Pick n Pay, the message is clear: don’t leave your future up to chance.

Take a moment to think about your business. Are you ready for the inevitable leadership changes down the line? If not, now’s the perfect time to start planning. Because the last thing you want is to be the one picking up the phone to call someone back from retirement.

How Competence SA Can Help You with Succession Planning

At Competence SA, we understand that effective succession planning is more than just filling roles; it’s about building a future where your business thrives. With over two decades of experience in leadership development and talent management, we specialise in helping businesses create robust succession plans that align with long-term strategic goals.

Here’s how we can support you:

  1. Tailored Leadership Development: We don’t believe in one-size-fits-all solutions. Our approach is personalised to your business needs, ensuring that each potential leader receives development that’s aligned with the specific challenges they will face in their role. From coaching to psychometric assessments, we equip your future leaders with the skills they need to excel.
  2. Comprehensive Succession Planning: We help you design a clear, structured succession plan that identifies critical roles, evaluates internal talent, and develops tailored growth paths. Our CSA Competency Framework ensures that all future leaders meet the high standards required to keep your business moving forward.
  3. Ongoing Support and Monitoring: Succession planning is not a one-time effort. We offer continuous support, regularly reviewing the progress of your future leaders and adjusting development plans as your business evolves. This ensures that your talent pipeline is always aligned with your company’s goals.

Visit our website at Competence SA to learn more about our leadership development and succession planning services.

About Competence SA

Competence SA identifies, develops, and enables potential through the provision of the following recruitment, talent management, and organisational transformation consulting services:

If you’d like to know how we raise the bar, visit www.competencesa.co.za

Contact us at hello@competencesa.co.za or 082 853 7456

Competence SA
More To Explore

Share: