10 Steps to Succession Planning for the Next Generation

Succession planning needs to be the focus of businesses. Current leadership should always be on the lookout for talented people to train and develop into future leadership roles. The seamless integration of new leadership in key positions can be the difference between continued success or unfortunate missteps that harm the balance sheet, trigger employee exodus, and drive away customers.

The process of succession is so inherently dramatic that it has been the focus of pop culture from “Arrested Development” in the early aughts, to “30 Rock” in the 2010s, to the aptly named “Succession” in the 2020s. But succession planning doesn’t have to be filled with drama. Instead, it can be a logical, methodical, and relatively painless process for those choosing successors, those chosen as successors, and even to those who are not chosen as successors.

Keep in mind that in many printing companies, succession is inextricably intertwined with ownership. If the business is being sold, then succession becomes the responsibility of the new owner. If the company is employee-owned, then succession planning becomes a group effort typically led by current management.

Succession planning has a logical progression. Leaving ample time for the process to unfold can make the transition less stressful and may soften the blow for those who are not successors. They will have time to adjust to the future reality and make a plan for themselves either to remain in the company or leave for an opportunity that will grow their career somewhere else.

10 Steps for Succession Planning

1» Long before the expected transition, identify the key positions that will need successors and the dates of the expected handover of responsibilities. Generally, planning at least two years out gives current management time to go through a succession process without feeling rushed. These positions include the obvious C-Level and senior executive positions, but should also include senior production managers, key sales personnel, human resources directors, and any employees who have highly specialized technical knowledge — such as safety personnel or mechanically insightful engineers. Look for positions that are integral in keeping the business running smoothly.

2» Ask the people currently in those positions to list their responsibilities and what skills correspond with those responsibilities. This should cover everything from mundane day-to-day tasks to big projects, initiatives, and decision-making. Once that is completed, ask those same key employees to recommend people they think have the skills, capabilities, and personality characteristics to be an excellent successor for the position. Make sure that communication skills are considered when making these decisions, and do not overlook toxic traits because a candidate might be a good producer by the numbers.

3» Ask key stakeholders to recommend successors in the positions about which they have specific knowledge. For instance, if the business has long-term clients who understand the workings of the company, they may have insight about who would make a great sales manager or production manager.

4» Consider external candidates for succession. Hire talent acquisition experts to consult on potential candidates for future roles. These “headhunters” generally have a wide network of professionals and industry specific knowledge of potential candidates.

5» Company executives should gather and determine a line of succession. A first choice and second choice for each position, at a minimum. This could take several meetings or a multi-day retreat to hammer out. Data can be useful here to assess who is consistently meeting company goals and expectations. Artificial intelligence (AI) can analyze data in a way that identifies people who consistently produce the “right” numbers. AI cannot, however, evaluate the personalities of the various candidates and
determine who can be an effective leader of people.

6» Be ready to justify your decisions and carefully document the process of reaching the decision. While not common, these documents may be needed to defend any lawsuits that could arise from disgruntled employees who thought they would be the successors.

7» Approach the person who is the first choice for each position and talk to them candidly about growing into the role. Ask about their long-term career and employment goals. The person who you think is planning on being at the company forever may be harboring a desire to move to a different state, or may be planning to change careers due to restlessness, discontent, or just a change of heart. Find out where they are in their career and personal goals and see if those align with succession. If not, move on to the next person on the list.

8» Create a career development plan for each of the people identified as successors. Identify the skills needed for the new position and whether the successor needs to learn or hone those skills to have success in the role. Create a plan for personalized one-on-one training, taking classes online or in person, and a reasonable timeline to learn. Take care not to pressure the successor and risk having them regret their decision to take over the position.

9» Consider announcing the successors about a year before the transition. Meet individually with people who thought they might be chosen and talk about what career development they might be interested in pursuing within the company. If they plan to leave the company so they can advance their career somewhere else, be supportive. Also be careful to protect the company’s proprietary information. This is complicated because non-competition agreements are potentially no longer legal, and trade secrets are narrowly defined. Seek the advice of a local attorney who can advise on whether these agreements can be used pursuant to local, state, and federal laws and regulations. If the agreements are allowed, have this attorney create them for any key employees choosing to leave
the company.

10» Track all succession information carefully. If a selected candidate is not progressing and confidence in the decision is waning, consider whether additional training or intervention can keep the succession on track, or whether the company will need to pivot to a different candidate. Again, careful record keeping will help defend a decision to pivot in the face of a potential lawsuit.

Timing Is Everything

Consider a scenario where the best succession candidate is not ready or is unavailable to take over on the company’s original timetable. How should the company proceed?

This is when succession planning gets creative. Maybe the timetable is malleable — can the departing executive be persuaded to stay one more year and the successor be ready sooner than originally thought? Is there a “meet in the middle” timetable that might work? But if that does not work, what then?

Consider an interim executive to cover the timing gap. CEO’s often consult with companies during “retirement” and for the right price, an interim CEO can be hired for a leadership role for a year, and even possibly longer. While this will likely be an expensive arrangement, it may be worth the investment to ultimately end up with the successor of choice.

Think Past Stereotypes

The typical succession scenario is an older person with vast experience leaves a job and is succeeded by a younger person with a good amount of experience, but nothing that reaches the level of the departing executive. Companies seek successors who will remain in their new role for many years.

Many years in a role, though, does not necessarily mean multiple decades. When evaluating candidates, keep an open mind about those who might not be significantly younger and less experienced than the departing employee. Generational difference does not have to be part of the criteria for a succession candidate. Age stereotyping limits a company and may result in overlooking a candidate who has vast experience and who intends to work long enough to make them a reasonable choice for succession. If a 65-year-old CEO decides to step down, and the person with the best experience is 55, do not rule out that candidate. Expecting a successor to remain a decade in a role is reasonable, and a 55-year-old candidate may be happy to make that commitment.

Consider Unconventional Candidates

Candidates do not have to come from the same type of company that is looking for a successor. A commercial printer does not have to hire someone with a commercial printing background for the job. A candidate from a wide-format company may be the best person for the job. An executive from an equipment manufacturer may be able to step into the role of printing company executive due to their depth of knowledge of the industry. While staying within the scope of the printing industry, expanding the search to people outside of a particular industry segment may result in outstanding candidates.

Focus on Key Attributes

For any role being filled, there are certain key attributes that should be part of a successful candidate’s skill set. The most important is that the successor should be receptive to receiving information and input from many sources. Learning from not just the exiting employee, but from all others at the company who have relevant information, as well as clients and other stakeholders is a requirement.

Another critical attribute is to be an effective communicator. Whatever role is being filled, that person should be able to effectively engage with people at every level within the company. Both verbal and written communication skills are vital for senior executives. If a chosen candidate is a poor communicator but was selected despite this deficiency, the company should pay for communication training. Nearly every metropolitan area will have consultants or organizations that will level up an executive’s communication skills. This is an investment that will be rewarded with a better work environment, a more positive work culture, and less turnover.

If the company is governed by shareholders or a board of directors, a CEO successor should be skilled in the specific type of communication required in these situations. Winning over a board of directors or being able to clearly deliver messaging for shareholders is critical to be an effective leader. As with nearly everything, if the chosen candidate does not have experience in this style of communication, consultants are available to hone these skills to provide the greatest opportunity for success.

Follow the Plan for Successful Succession

Being methodical has benefits when making crucial decisions such as succession. Planning each step and following the plan will keep the process on track and help when the choices become difficult. Use all of the wisdom and resources available within the company, but also from third-parties such as stakeholders, clients, and consultants. Trust the process and succession can be a rewarding experience.