Entrepreneur Series managing leadership succession in business: key person dependency

Key Verse:2 Timothy 2:2: “Pass on what you heard from me – the whole congregation saying Amen! – to reliable leaders who are competent to teach others,” (MSG).

Business succession planning is an important process that helps businesses or organisations transition smoothly when a key person leaves the organisation. A key person is a staff of an organisation that possesses what we may refer to as “Organisational Knowledge.” When key persons leaves a company without properly passing on knowledge, skills and competencies they have acquired on the job to others, it will leave a severe impact on the company and, sometimes, closure of the business.

Key person’s dependency is a risk that must be avoided to ensure smooth successions in an organisation.

In 2012, Nigeria witnessed the unfortunate collapse of one of its iconic businesses, the textile industry, whenthe giant Aswani Textile Industries left. Founded in the 1960s, Aswani was once a thriving enterprise, employing thousands of people and contributing significantly to the local economy.

However, the sudden demise of its founder, left a leadership vacuum that marked the downfall of the business.

A leader must think generationally and prepare for the next leaders before he leaves the scene. Elijah was not thinking generationally and that was why he placed his anointing on high risk when he said to Elisha: “If you see me when I am taken from you, it shall be so unto you; but if not, it shall not be so,” (2 Kings 2:10).

A mantle did not need to be transmitted on the last day. There should have been a system of training put in place by Elijah through which he intentionally pass on to Elisha the grace, anointing and competencies that he carried. This was a clear case of key person dependency (KPD). Every business organisation should have a system of training and retraining of their employees. The upcoming staff members should be placed under key persons in the organisation, so, as to be trainedby them and by so doing, organisational knowledge is passed to upcoming generation. This helps to avoid key person dependency risk.

Don’t be the only great man, impact others. Every organisation is exposed to key Persons Dependency Risk (KPD) when its profitability depends only on key persons. When the key persons die, it brings about the end of the organisation. It should be avoided. Some organisations, do not allow the MD and Deputy MD to travel on same day and on same aircraft. Why? This is because such key persons possess what is called ‘native intelligence’ of that particular organisation. Don’t allow key persons only to play significant roles in the company. There should be a system where key persons will teach other staffhow to handle the same roles they are playing. Every key person should have an assistant.

Imagine if Elisha was not around on the day Elijah was to be taken to pick the mantle of Elijah, it would have been KPD gone bad.

Good leaders raise other leaders. Building other leaders extends the growth of any organisation and creates a future for that organisation. Elijah raised Elisha, but Elisha failed to produce a good leader in Gehazi.

You can be a good leader and raise a thief. Train everybody in your team without discrimination that is how leaders in business organisation emerge. Pour yourself out to your followers and leaders will emerge out of them. As a follower make your choice not to be like Judas or Gehazi.

The more people we develop, the more the impact on the organisation. The more leader we grow, the greater the impact of the organization

• Today’s nugget: A good leader produces other leaders. Phone Contact: 07032361509. E-mail: [email protected]. Joel Ejiofor, Business Consultant