How organisational culture is key to effective business succession

As the Machiavellian exploits of one of TV’s most infamous business dynasties reached its gripping conclusion in HBO’s multi-award-winning drama series, its thorny subject matter – business succession – has entered the mainstream.

Given the audacity of the show’s perma-squabbling protagonists, viewers could be forgiven for thinking that every boardroom is a hotbed of intrigue, with directors constantly jostling for advantage in a gladiatorial battle for primacy. The reality is more prosaic. For most companies, succession planning isn’t about setting the stage for the next power grab but, rather, a critical component of organisational future-proofing.

It’s not something that happens by accident. Effective succession planning is usually the product of a carefully constructed organisational ecosystem designed to meet long-term human capital needs by cultivating and curating talent through a process of continuous development.

There’s a gap between aspiration and reality, though. A recent Gartner survey of 800+ HR leaders from a wide range of sectors showed that while 60 per cent of respondents believed that ‘leader and manager effectiveness’ was among their top priorities, less than a quarter (24 per cent) felt that their approach to leadership development didn’t properly prepare leaders for the future of work.

It's a worrying statistic, given the uncertain business climate. As recent seismic shifts – social, political and economic – continue to redefine the leader-employee/workplace dynamic, how can companies align their talent acquisition and management strategies with this new, and continually evolving, corporate landscape?

Establishing the right organisational culture

All too often, companies see succession planning as a function of HR – a misconception that inevitably limits its scope. In fact, all the processes that shape succession planning – such as determining key positions, selecting HiPos and creating a system that supports and promotes future leaders – are actually rooted in an organisation’s broader culture.

Jules Housecroft is qpeople’s Senior L&D and HR Consultant. Jules believes that many companies – particularly in the MENA region – haven’t always appreciated the role of organisational culture in their continued growth and success:

‘Managing talent in the most effective way isn’t just about fine-tuning the recruitment process; it’s about carefully calibrating every part of the employee journey.

‘The really important questions – How do we keep our people engaged and motivated? How do we optimise performance and minimise risk? How can we develop the talent we need to navigate an uncertain future? – can only be addressed by creating a culture that aligns talent with strategic business goals. There aren’t any glib solutions; you have to dig deeper to get the best results – to outperform your competitors.’

Establishing a positive company culture is everyone’s responsibility: by sharing this commitment, everyone can play their part in defining, developing and maintaining it. And, while HR will likely be tasked with designing the kind of experiences that foster this culture, all staff members, from employees to board directors, will have a role in its effective implementation.

Enabling succession development

Naturally, planning will only get you so far. Unless the right people are being groomed for the right roles, business growth will be patchy at best.

Which is why leadership development within a culture of continuous learning is a key component of any sensible succession strategy. Companies that take this approach will have the opportunity to cultivate an internal talent pool perfectly aligned with their strategic goals.

Continuous learning enables employees at every level to target a preferred career path within their organisation, promoting loyalty and reducing churn (employees who feel part of the succession-planning process are likely to stay longer and contribute more). At the same time, managers can use their experience to anticipate future skills gaps, upskilling individuals and teams to avoid them, while matching employees with the skills and professional training opportunities they need to explore vertical or lateral moves into new positions.

Leading with vision

Forecasting how roles might change in the future, anticipating in-demand skills and supporting skills development requires long-range vision as well as strategic-planning capabilities – something that can present a challenge for even the most capable leadership teams.

The potential rewards are significant, though. AI is already impacting the workplace; the Gartner survey predicts that 33 per cent of the skills from 2019 job postings will be functionally obsolete by 2024.

With recruitment teams already struggling with the twin realities of low supply and low retention, those companies that successfully nurture their internal talent pools will gain an advantage. Managed properly, succession development will help business acquire the agility, innovation and resilience they need not only to weather the storms that lie ahead, but to capitalise on them.

Jules Housecroft: ‘In my experience, businesses that properly invest in their organisational culture become the most sought-after employers with the deep and agile talent pools that empower them to flex and grow as market conditions change.

This adaptability is something that’s gaining importance in MENA as mandatory Emiratisation rates continue to climb. Simply put, every company with an eye on the future should be having a conversation about organisational culture.

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