The relevance of succession planning often depends on the type of organization in question. In this discussion, we will consider three categories of organizations: Private sector, Government, and SMEs.
Government Organizations
From experience, government institutions typically recognize succession planning in theory but rarely practice it effectively. Even when investments are made in grooming potential successors, the process is undermined by the principle of “fairness” in recruitment. Vacancies are often advertised externally, with the argument that everyone should have an equal chance. While this may seem fair, it overlooks a critical factor i.e the steep learning curve faced by outsiders. In many cases, new recruits may take a year or more to adapt, which slows down organizational efficiency.
Private Sector Organizations
In contrast, private companies especially multinationals place significant importance on succession planning. It is often embedded in their growth and continuity strategies. Programs such as secondments to other operating companies, job shadowing, and structured leadership development initiatives are common. These efforts not only prepare internal staff for future roles but also reduce the risks and costs associated with external recruitment, such as cultural misfits and extended adjustment periods.
SMEs (Small and Medium Enterprises)
For SMEs, succession planning is often non-existent or poorly executed. In many cases, decision-making power remains concentrated in the founder, with limited opportunities for employees to gain hands-on leadership experience. As consultants working with SMEs, particularly those seeking to become investment ready, we have found this to be one of the greatest barriers to sustainable growth. This partly explains why, in Uganda, very few indigenous businesses have survived beyond the founder’s leadership.
The key question is: What would it take to introduce succession planning in SMEs?
Practical Steps for SMEs
- Document the Vision and Strategy – Founders should clearly articulate their long-term vision and strategy, enabling employees to understand what success looks like. Structure must follow strategy.
- Separate the Founder from the Structure – The founder should not be the structure. Instead, they should establish an organizational framework early on, filling roles as and when necessary.
- Identify Critical Positions – Pinpoint essential roles that must be filled to shape the structure. From there, begin developing successors to ensure business continuity and avoid overdependence on the founder.
- Develop Performance and Learning Systems – Create mechanisms to measure performance, identify skills gaps, and close them through training, job shadowing, and acting opportunities.
Conclusion
Succession planning is not just relevant, it is essential for any organization that wishes to remain competitive in today’s talent-driven market. In environments where talent is limited, organizations that invest in structured succession planning stand a far better chance of thriving long after their current leaders have moved on.
It is also critical in situations where successors are family members. They need to be involved at an early stage so that they become part and parcel of the business’s growth, rather than being introduced later without a proper understanding of how the business operates
