Most SMB's have limited elbow room to ensure that more than one person handles any task/job at a time. The limitation is more to do with constraint on resources and budgetary limitations. Succession Planning for such SMB's is not at all a priority or rather should I say cannot be a priority because of the restrictive cost involved with such exercises ..
However in the same breath every entrepreneur knows the risks he/she carries with such individuals but prefers to procrastinate such thoughts let alone acting on it. Hence if in case the person leaves or merely proceeds on long leave the entire system comes to a grinding halt. The vulnerabilities are more pronounced in functions like Sales, Operations and sometimes in Finance and Accounts. More often than not such responsibilities are filled in by the CEO himself.
The biggest drama that unfolds is when such employees decide to tender their resignation! Much of my experience tells me that such resignations are more an act to seek attention; I have known many cases where the individual has tendered his resignation and taken it back at least 3-4 times like a customary ritual.
Frankly the bigger excitement is when the owner/entrepreneur comes forward with all the freebies and bonanza offers including immediate promotions, increments, car, bonuses and what not. Such negotiations generally prolong throughout the entire notice period and are also a mix of emotional exchanges between the two parties.
And of course all of this is in hush hush where the concerned employee is strictly told not to tell anyone....This indeed is the best kept secret with everyone knowing about the deal except the owner who feels no one is aware??
But internally the entrepreneur is literally seething with anger and tries to take such steps that ensure, the gun is not kept on his temple once again.
Invariably such employees are also quite smart to ensure that they are always reluctant to share the privileged skills and knowledge they possess with any other individual so as to create indispensability. The situation gets exacerbated if the Company has not defined robust processes and SOP's which mandates the transfer of knowledge. In fact you would be surprised to know that in most companies which intend to document internal processes, the respective executives who are supposed to prepare them are extremely reluctant to document them-Most common excuse is-shortage of time!!
Most entrepreneurs are aware of these intense dependencies and vulnerabilities but generally avoid acting on it-remember the famous adage if it ain't broken why fix it. In the process the Company creates prima donna's and power centers which often becomes dysfunctional in the long term and the bigger damage is done when new skilled professionals are inducted. The old hands become obstacles to the new professionals and ensure that they do not settle.
If Companies cannot afford Succession given their size, they definitely can adopt Employee Continuity which is similar to business continuity. It's the next best person that can take over if a person leaves.
The first step for companies who recognize this as a problem is to de-risk such vulnerabilities by undertaking the task of identifying Key & Critical resources in the company. Bluesky has a validated model that it adopts for its portfolio clients. Note that criticality can exist at any level within the company and has little to do with hierarchy and position. The next step is to mitigate the risk by identifying whether we have some one internally within the organization that can take over (Either vertically within the structure or at a peer level). You can categorize them as Red Amber and Green depending on their readiness. In some cases the mapping may also be done externally so that if the incumbent leaves, the options in the external market are well researched and available.
Incentivizing people for cross skilling is also another method to de-risk and the most effective method is to digitize that not only standardizes the work flow but also ensures consistency. As the company progresses it must make an audit at regular intervals on such criticalities and the intensity of impact in case of attrition. Hiring back ups and second/third level is another priority thrust that must be examined. To sum it up talent and vulnerability exercises must be undertaken as a conscious exercise with the HR function and create mitigating plans to derisk and future proof the company.
Do share your views. Since we have created the blog there has been an overwhelming response. Your viewership is most appreciated.
If you have any challenges or topics you would like some opinion on, feel free to express.
However in the same breath every entrepreneur knows the risks he/she carries with such individuals but prefers to procrastinate such thoughts let alone acting on it. Hence if in case the person leaves or merely proceeds on long leave the entire system comes to a grinding halt. The vulnerabilities are more pronounced in functions like Sales, Operations and sometimes in Finance and Accounts. More often than not such responsibilities are filled in by the CEO himself.
The biggest drama that unfolds is when such employees decide to tender their resignation! Much of my experience tells me that such resignations are more an act to seek attention; I have known many cases where the individual has tendered his resignation and taken it back at least 3-4 times like a customary ritual.
Frankly the bigger excitement is when the owner/entrepreneur comes forward with all the freebies and bonanza offers including immediate promotions, increments, car, bonuses and what not. Such negotiations generally prolong throughout the entire notice period and are also a mix of emotional exchanges between the two parties.
And of course all of this is in hush hush where the concerned employee is strictly told not to tell anyone....This indeed is the best kept secret with everyone knowing about the deal except the owner who feels no one is aware??
But internally the entrepreneur is literally seething with anger and tries to take such steps that ensure, the gun is not kept on his temple once again.
Invariably such employees are also quite smart to ensure that they are always reluctant to share the privileged skills and knowledge they possess with any other individual so as to create indispensability. The situation gets exacerbated if the Company has not defined robust processes and SOP's which mandates the transfer of knowledge. In fact you would be surprised to know that in most companies which intend to document internal processes, the respective executives who are supposed to prepare them are extremely reluctant to document them-Most common excuse is-shortage of time!!
Most entrepreneurs are aware of these intense dependencies and vulnerabilities but generally avoid acting on it-remember the famous adage if it ain't broken why fix it. In the process the Company creates prima donna's and power centers which often becomes dysfunctional in the long term and the bigger damage is done when new skilled professionals are inducted. The old hands become obstacles to the new professionals and ensure that they do not settle.
If Companies cannot afford Succession given their size, they definitely can adopt Employee Continuity which is similar to business continuity. It's the next best person that can take over if a person leaves.
The first step for companies who recognize this as a problem is to de-risk such vulnerabilities by undertaking the task of identifying Key & Critical resources in the company. Bluesky has a validated model that it adopts for its portfolio clients. Note that criticality can exist at any level within the company and has little to do with hierarchy and position. The next step is to mitigate the risk by identifying whether we have some one internally within the organization that can take over (Either vertically within the structure or at a peer level). You can categorize them as Red Amber and Green depending on their readiness. In some cases the mapping may also be done externally so that if the incumbent leaves, the options in the external market are well researched and available.
Incentivizing people for cross skilling is also another method to de-risk and the most effective method is to digitize that not only standardizes the work flow but also ensures consistency. As the company progresses it must make an audit at regular intervals on such criticalities and the intensity of impact in case of attrition. Hiring back ups and second/third level is another priority thrust that must be examined. To sum it up talent and vulnerability exercises must be undertaken as a conscious exercise with the HR function and create mitigating plans to derisk and future proof the company.
Do share your views. Since we have created the blog there has been an overwhelming response. Your viewership is most appreciated.
If you have any challenges or topics you would like some opinion on, feel free to express.
Completely agree with the post. Always the struggle is to retain the not so updated to time employee and hence planning successions becomes difficult. Since the employee in argument himself knows there is no further he can grow he ensures he does not allow anyone to settle in his place. Most of these SMB's are left with no choice most of the times but to settle for what they have and keep supplying excess nourishment and making the employee indispensable.Cross functional team formations,cross training's and ensuring to build 2 strong employees with some overlap in job functions will ensure de-risking such employers
ReplyDelete