How to pass on the responsibility of leadership

Philip Hendrick explores the options for those looking to find their replacement before stepping back from a leadership role 

CREDIT: This is an edited version of an article that originally appeared on Robert Half

Stepping back as a leader can help in avoiding burnout and creating more options for an organisation; by continuing in a non-executive position, leaders are able to stay involved in governance and decision-making while opening the door for a new person to develop and flourish – but this transition can be tough for someone who has built an organisation from the ground up and they can often struggle to hand over the reins of responsibility to someone else. 

On the surface, there are two options – appoint someone from outside the business or look for an existing team member with proven experience – but that’s not all there is to consider. In the process of finding a viable successor, the outgoing leader will have to evaluate their long-term approach to attracting and retaining talent – the biggest, and most important, challenge many small and medium enterprises face.

Externally sourced appointments

A new appointment from outside the business can be refreshing; they should come with new ideas, immediate experience of the industry, and time spent handling the demands of the role somewhere else. This will give them the confidence to make bold decisions, execute the agreed strategy, and establish the role as they wish.

Internal executive appointments

A senior leader from within the organisation also comes with an advantage – they understand how it works, have experience at a senior level, and know the outgoing leader.

Many organisations are specifically focusing on increasing inclusion, with 23% amending recruitment processes and the same percentage creating employee network groups to aid with culture so, introducing someone who is already familiar with the company’s culture can give them a head start in making the right decisions.

However, some leaders still struggle to invest in the process of internal succession. It needs to be developed carefully, with senior leaders gaining exposure to different aspects of the business through a programme of leadership development, and a rotation through different departments or regions, can provide valuable experience and new ideas. Although this is a big investment, it has a long-term return.

Whether the candidate comes from within or is sourced externally, leaders and board members will have to reflect on how much they are prepared to invest in the process – and what might happen if they don’t. A smooth transition needs clear intentions, investment, and for everyone to work together for the good of the business.

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