Article by Tyneketra Wanja
When it comes to succession planning, the stakes are high. It’s one of those issues that many business owners shy away from, sometimes due to cultural taboos, fear that it means one is about to die especially in Africa. Other times it is because they assume the future will take care of itself. But the harsh truth is this: without a solid plan in place, even the most successful business can crumble in a matter of years. There’s a popular but misguided belief that leadership should naturally pass on to the children of the current boss.
While family-run businesses can thrive under generational leadership, problems arise when successors are chosen by bloodline instead of capability. Often, these heirs have little to no involvement in the company’s day-to-day operations, yet find themselves thrust into leadership roles they are unprepared for. The results? Confusion, internal conflict, or decline.
The corporate world is full of cautionary tales. Take, for instance, the collapse of once-mighty businesses such as Nakumatt, Tuskys, Akamba Bus Ltd, and the empire of the late Njenga Karume. Karume, a respected politician and successful entrepreneur, appeared to have done everything right, establishing trustees, allocating resources, and setting aside reserves. But even his seemingly solid succession framework unraveled into court battles, mismanagement, and financial turmoil. His properties, once booming, are now plagued by debt and uncertainty, and his family is locked in a struggle that is costing millions in legal fees.
On the flip side, companies that prioritize strategic succession planning have flourished. Safaricom, for instance, has institutionalized talent development through structured programs that identify high-potential employees and groom them for leadership. This has ensured continuity and resilience in their operations. Similarly, KCB Bank’s focus on mentorship, leadership development, and promoting from within has led to smooth leadership transitions and consistent growth. Global names like Walmart, Ford, and JW Marriott Hotels also serve as prime examples of how thoughtful succession can sustain and even boost an organization’s legacy.
Organizations can avoid the pitfalls of poor leadership transitions by treating succession planning as a continuous, strategic process rather than a one-time event. A proactive approach ensures long-term stability and resilience. Key practices include fostering transparency so everyone understands the plan and its purpose, focusing on future needs instead of short-term fixes and identifying roles essential to business continuity. Integrating succession efforts with broader talent management enhances alignment with performance goals and organizational strategy.
Technology plays a vital role in tracking talent readiness and streamlining transitions, while consistent training, mentorship, and skill assessments help close development gaps. Aligning succession planning with both business objectives and individual growth plans, with clear communication, builds a strong leadership pipeline and ensures seamless transitions.
Why Succession Planning Matters
Succession planning extends beyond naming a future CEO; it serves as a strategic tool to preserve institutional knowledge, strengthen employee development, and maintain business continuity. Promoting internal talent helps lower recruitment costs, prevent leadership gaps, and increase organizational agility during periods of change. It reinforces engagement, boosts morale, and enhances retention as employees see clear growth opportunities and feel valued within the organization. Using data-driven tools and succession planning software transforms the process into an efficient, proactive system that ensures long-term stability, minimizes disruption, and supports sustained business performance.
An effective succession planning model is built on four interconnected components that ensure a steady pipeline of capable leaders. It begins with robust talent development, combining targeted training, job rotations, challenging assignments, and career planning to build essential leadership competencies. The next step is identifying potential leaders which requires diverse and objective approaches, including evaluation tools, internal committees, and surveys that go beyond traditional “heir-apparent” thinking. Strengthening leadership capabilities follows, using tools such as workshops, executive coaching, action learning, and 360-degree feedback to enhance both performance and visibility. The final stage involves making informed, inclusive decisions by considering a wide range of candidates and engaging the board to ensure alignment with the organization’s long-term strategy and governance priorities.
Addressing Succession Challenges
Succession planning presents several challenges, from uncertainty about where to begin to the absence of a structured selection process. Without clarity, organizations struggle to prioritize roles, while a lack of defined criteria makes it difficult to identify and develop suitable successors. Excluding key stakeholders often leads to decreased morale, with poor communication perceived as a sign of disorganization. In some cases, individuals are promoted without the necessary skills or team support, setting them up for failure.
To overcome these issues, companies should promote open dialogue and transparency, fostering trust and engagement. Establishing a well-defined succession roadmap brings clarity and alignment, while early identification of potential leaders enables focused development. Flexibility is also essential, allowing the plan to evolve with shifting leadership demands, market conditions, and organizational goals.
Conclusion
Succession planning is not just about naming a successor, it’s about preparing them. It’s about making sure that the next generation of leadership doesn’t just inherit a title, but is equipped with the tools, insight, and readiness to lead effectively. In business, as in life, legacies are not inherited, they’re built. And without a clear plan, even the strongest empires can fall. It’s much similar to a relay race. If the baton isn’t passed correctly, the race can be lost in seconds, no matter how fast each runner is. But with practice, planning, and trust, the baton moves smoothly from one leader to the next.
In the words of Anne Mulcahy: “One of the things we often miss in succession planning is that it should be gradual and thoughtful with lots of sharing of information and knowledge and perspective, so that it’s almost a non-event when it happens.”
