Building a leadership bench before you need it: a succession primer for founders
Most founders think about succession when they have to — when a key person leaves, when they want to step back, when an investor asks about it. By then, the bench is thin and the options are limited. Building a leadership bench is a three-to-five-year project, not a six-month one.
A leadership bench is the group of people in your organisation who could step into senior roles — either roles that exist now or roles that will exist as the business grows. Building it requires identifying who has the potential, developing them deliberately and giving them the experience they need.
The first step is identifying potential. This is harder than it sounds. High performance in a current role does not automatically indicate potential for a larger role. Potential requires the ability to learn, to handle complexity and to lead others — qualities that are not always visible in day-to-day performance.
Assessment centres and 360° feedback are useful tools for identifying potential. They provide a more structured and objective view than a manager's impression. They also surface development needs that can be addressed before the person is placed in a larger role.
Development needs to be deliberate. Putting a high-potential person in a challenging role and hoping they will develop is not a succession plan. Development requires a clear picture of what the person needs to learn, a plan for how they will learn it and regular feedback on their progress.
Stretch assignments are the most powerful development tool. A person who has managed a team of five and is given responsibility for a team of twenty, or who has run a function and is given a cross-functional project, develops faster than one who stays in a comfortable role.
Succession planning is not just about the top of the organisation. Every critical role — not just the CEO — should have at least one identified successor who is being developed. Key-person risk at the functional level is as damaging as key-person risk at the top.
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Talk to Kriate HRCommon questions
How many successors should each senior role have?+
Ideally two: one who could step in immediately in an emergency, and one who is being developed for the role over the next two to three years. One successor is a single point of failure.
What is the difference between succession planning and talent management?+
Succession planning focuses on ensuring continuity in critical roles. Talent management is broader — it covers the identification, development and retention of high-potential people across the organisation. Succession planning is one component of talent management.
When should a founder start thinking about succession?+
Earlier than feels necessary. The right time to start building a leadership bench is when the business is growing and the founder is still in control — not when they are under pressure to step back or when a key person has already left.
Jacob Raj Rajendran
Principal — HR & Organisation Development, Kriate HR
23+ years in business and operations HR. Prior roles at Ford, General Motors, TVS, Crompton Greaves and Cognizant. Six Sigma Black Belt; Strategic HRM, University of Michigan.
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