‘Succession vital for MfB business continuity’

Our Reporter

WITHOUT careful management of the leadership succession process, Micro Finance Banks (MfBs) could die suddenly, Philip Consulting has warned.

It said MfBs could face power tussles which could affect its functions, lead to loss of  knowledge, and increase costs of abrupt hiring.

Its Associate Partner at Phillips Consulting Limited, Foyinsola Akinjayeju who spoke at a conference organised by the Lagos State Chapter of the National Association of MfBs, said, it could also lead to other challenges for MfBs

In her presentation titled: Steps for effective succession management, she said: “Preparing the next generation of leaders has become more imperative than ever. 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 advised business leaders not to plan for the present alone, and explore if their people were the best talent for the future.

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She distinguished between succession management and more common practices of succession planning and replacement planning, citing  differences to include focus; successors; and time investment required.

While replacement planning focuses only on managerial positions and identifying talent to replace individuals who leave such positions, succession management, on the other hand, is concerned with corporate-critical positions across grades, profiling the talent (mix of job skills and unique competencies) required for such positions. It also include the identification of the suitable talent, deliberate development of the identified talent, and regular monitoring of the process to measure its effectiveness in respect to the strategic objectives of the organisation.