Get Guardian on GoogleWithout careful management of the leadership succession process, Micro Finance Banks (MFBs) could face power tussle with severe consequences and witness business failure.
Consequences such as sudden exits across different levels and functions, loss of tribal knowledge, costs of abrupt hiring, uncertainty, chaos, damage to the company’s culture, and reduced performance may occur in such a situation.
These were the assertions of Associate Partner at Phillips Consulting Limited (PCL), Foyinsola Akinjayeju, while delivering a presentation titled, “Steps for Effective Succession Management,” at a conference organised by the Lagos State Chapter of the National Association of Microfinance Banks.
Akinjayeju said preparing the next generation of leaders has become more imperative than ever, as some companies meticulously follow procedures of “next-in-line” for leadership roles, yet their new leaders are ill-prepared for the role, and end up as corporate placeholders, at the centre of chaos.
She distinguished between succession management and more common practices of succession planning and replacement planning, citing their areas of differences around focus, successors and time investment required. She maintained that organisations that seek long-term sustainability must adopt a robust succession management system, while focusing on talents who demonstrate high potential.
Managing Director, PCL, Rob Taiwo, who shared his experience taking over the management of the company from the founder, stressed the importance of appropriate timing, and extolled authentic leadership as a key success ingredient, admonishing chief executives to give guidelines only, and not impose their methods on their successors.He said: “Challenges often arise in the seemingly small areas like stakeholder engagement, culture, or perception and the one thing leaders need to keep going is grit.”
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