Leadership in Waiting
By Bishnu Aryal
If leadership is the most important determinant for the success or failure
of a business unit or a nation as a whole, an analysis of the current
situation in Nepal calls for immediate corrections in leadership development
systems and practices. The ruling party is plagued by leadership crisis
time and again. Girija Prasad Koirala did not resign earlier as the CEO
of the country despite his earlier promises. Interestingly and surprisingly,
the reason he gave was, he did not see his successor. Similarly, the position
of Chairman in NCP (UML) is also lying vacant as they have not figured
out the person to hold the position since the demise of their party chairman
some years ago. Moreover, the nation is still to hear the declaration
of the heir to the throne.
The business sector is following the suit. Most of the organizations
do not have succession planning system to fill senior level executive
positions including CEO when the incumbent retires. As a result people
at work are directionless and doubtful about the future. Even the organizations
having some succession planning are not doing well. Many companies are
closed or badly affected by incapable people holding the reins by way
of family relation. The whole picture may be described as leadership by
default or shortsightedness.
Generally, the leadership in Nepal does not try to develop its successor
because they feel insecure from the second line, and hence do not delegate
authority. Management development programs are not carried out. Bhola
Thapa the incumbent president of Nepal Association of Travel Agents (NATA)
and owner of President Travels, was once quoted as saying that there would
be no second man in Nepal because as one becomes second man, he tries
to be the first and, indeed, would become the first. Leaders are neither
visionary nor transformational. So the country is the loser and its people
are the sufferers. The reasons may be different depending upon whom you
ask, but from the HRM perspective this is due to lack of effective management
of people’s dimension in governance.
Succession planning is developing leadership in waiting. At corporate
level this is a part of employee planning and forecasting. Generally this
refers to the plans a company makes to fill its important executive positions.
It ensures the supply of successors for current and future requirements
for senior or key positions arising from business strategy.
At corporate level succession planning includes eight major activities
as suggested by Peter Walum (see box). The real life practices in Nepal
avoid the very first step and as a result all the activities in this field
are carried out in a fire-brigade style. For example, one may recall the
situation in the bureaucracy and in public enterprises in early 1990 when
all those who had either completed a certain number of years of service
or reached a certain age, were removed suddenly. Follow up activities
to ensure that the remainder of the bureaucracy functioned more effectively,
thus justifying the move, were not carried out. The "Friday Massacre"
(as it is also called sometimes because the decision was made public on
a Friday to avoid the sudden burst of emotions by such a large mass of
sacked employees) made the bureaucracy and PEs rudderless. Inexperienced
and immature juniors had to fill most of the leadership position. The
situation today is the result of the decision to a large extent, it can
be argued. Similar examples are aplenty in the private sector as well.
However, there are indications to show that the private sector business
houses have started realizing the importance of succession planning. As
Prithivi Bahadur Pandey, who has been watching the country’s private
sector as a banker for last couple of decades, observes, the business
houses are sending the younger generation of their families for studies
in business management. That they are sending for such studies not merely
the males but also the females, is an indication of the realization growing.
Still, these are not going to be enough. The employees themselves should
be given the opportunity to gradually make it to the top through well
thought-out career planning opportunities offered to them.
Today’s tomorrow is tomorrow’s today. Today’s second man
is tomorrow’s first man. Development of second generation means preparation
for tomorrow. Succession planning serves as an effective tool to create
leadership in waiting that will ensure organizational continuity and effectiveness
in the long run. HR intervention in political and corporate leadership
development is the demand of the day.
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Steps in Succession
Planning
1. Analysis of demand of the managers
and professionals by company levels, functions and skill.
2. Audit of existing executives and
projection of likely future supply from internal and external
sources.
3. Planning of individual career
paths based on objective estimates of future needs and drawing
on reliable performance appraisals and assessments of future needs.
4. Career counseling undertaken in
the context of a realistic understanding of the future needs of
the firm, as well as those of the individual.
5. Accelerated promotions, with development
targeted against the future needs of the business.
6. Performance related training and
development to prepare individuals for future roles as well as
current responsibilities
7. Planned strategic recruitment
not only to fill short-term needs but also to provide people for
development to meet future needs
8. The actual activities by which
openings are filled.
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Source : Peter Walum
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