Guide to Board Succession Planning

Guide to Board Succession Planning

Board directors (or future leaders) can learn how to become a good manager in one of three main ways, which are described in the following sections.

The Board Directors Succession

In many countries around the world, the work of boards of directors is undergoing significant changes. Against the backdrop of global challenges that the business community is facing everywhere, the impact of the financial crisis in many regions has forever changed the role of directors and, in some cases, the understanding of where they can be most effective. However, change is often accompanied by new challenges and questions, and how directors deal with them has been the subject of extensive research.

While boards of directors are using new technology to monitor the company’s business performance more closely and monitor the impact on local and global markets more closely, some directors have expressed concern that technological advances could lead to increased scrutiny by shareholders and others. According to the survey results, 76% of surveyed directors expect increased control over shareholders in the next few years. Increased focus, however, is not necessarily negative. Business success reports are now in the spotlight much faster than before.

The uncertainty of the global economic climate continues to influence the content of the agendas of board meetings. Risk oversight remains a top priority for nearly every board of directors, and as a result, directors are focusing on organizational strategies and business operations. Risk control considerations are paramount in decision-making for 67% of respondents. In their opinion, the time devoted to risk supervision will not decrease in the next couple of years. In fact, another trend is worrying: new regulations adopted or planned to protect investor interests may distract boards of directors from their agendas.

Board Succession Planning

There are three main principles for board succession planning:

1. Watch and listen.

If you are fortunate enough to have had an experienced teacher or leader in your career – people who could take you under their wing – you received an education in management science that is comparable or better than any of the Academy of Management and Business programs. You have learned first-hand concepts of right and wrong ways to lead people. You found out what’s what in your organization, and you realized that the customer needs more than your empty promises.

2. Be a True Leader.

The same is true for leaders who need fear and intimidation to achieve results. What are the real results of this leadership style? Do employees think about the day ahead? Are they all aligned with common results and goals? Are they making an effort to bring something new to their workflow and procedures? Or don’t their dreams extend beyond a day without shouting? Think about what you need to do differently to achieve the results you want.

3. Do and learn.

The essence of employee management is similar. If you make all the decisions, do all the work that your employees are perfectly capable of doing on their own, if they have the opportunity, and try to pull the whole organization on your own shoulders, you are doing far more damage to your people and your organization than you might imagine. Your employees will never learn how to achieve success on their own, and after a while, they will stop trying to do it. In your sincere efforts to make the organization successful, you have stalled the growth of workers, thereby making the organization less efficient and less viable.