strategy
the simple but effective process of job
shadowing.
“In most businesses, there is a yearly
business cycle, so it may make sense
to start the shadowing process one year
before the formal succession date,” said
Hodkinson.
Keeping the former leader involved
with the company can be beneficial, but
it’s also tricky.
“You use the outgoing leader for wisdom
and as a sounding board early on,”
said Cukier. “You have customer relations
to maintain, and you have a lot of skills
there. But, they must realize there is a
time to step in and a time to stay back.
They key is to ensure the outgoing leader
knows his or her place. It’s not easy – it’s
one of the toughest areas.”
As for managing the expectations of
a family business’ “next gen,” Cukier recommends
having an open family meeting
about the succession plan.
“As the owner, you can’t leave your kids
to take care of it after you’re gone; that’s
where conflicts happen. Plan it out, and
then there’s no question about what mom
or dad would have wanted.”
Hodkinson also emphasizes advance
preparation as critical to succession
planning.
“Be sure to plan early, allow enough
time for shadowing and make certain that
communication is handled properly within
the company,” she said. “There needs to
be enough time to pass the baton; but
once it’s been passed, the outgoing leader
needs to step aside relatively quickly.”
As for HR professionals who find
themselves challenged with the thorny
issue of succession planning, there is a
silver lining. If they do it right, there is
a real opportunity to ensure the company’s
legacy will live on – in effect, they
will be building a bridge between the
generations. n
INTRODUCING UNIQUE AND
EXPERIENTIAL CORPORATE
TRAINING PROGRAMS
COMMON PITFALLS OF
SUCCESSION PLANNING
HR professionals have an important role to play
in succession planning. Open discussion with
outgoing leaders will clarify their expectations
for the future, while helping to avoid uncomfortable
situations like these:
■■ The leader hasn’t accepted the fact that it’s
time to make the transition.
■■ In the case of a family business, the leader
believes all his children are equal, including
those in and out of the company.
■■ There’s nothing in writing – with no written
game plan, no one really understands their
roles.
■■ Owners fail to realize their children may not
be the best managers, and that outside talent
may be required.
■■ There’s no formal communication about the
forthcoming leadership change – staff are left
to fill in the blanks, and they’re often wrong.
CN Tower
301 Front Street West
Toronto, ON
CANADA M5V 2T6
416-601-4718
sales@cntower.ca
BASED ON EDGEWALK AND POWERED BY EAGLE’S FLIGHT cntower.ca/teambuilding
HRPATODAY.CA ❚ FEBRUARY 2015 ❚ 43