Article originally published at Nexo Jornal in 23/11/2024
*By Felipe Insunza Groba, Juliana Santos Oliveira and Paula Jancso Fabiani
Succession is a challenge inherent to life and it is tangled with every part of society, being family businesses, where the conflict over inheritances can generate fights that are almost fratricidal, such as the one seen in the TV series ‘Succession’; in politics, where periods of leadership transition are often scared with instabilities; or even at the core of religious doctrines, such as the dispute between shiites and sunnis, the result of a succession conflict that occurred after the death of prophet Muhammad.
Humanity is filled with examples of how succession can be a decisive moment in history, shaping a nation’s future and triggering big social transformations and, in Brazil, it is no different. After almost fifty years of Dom Pedro II’s reign, the monarchy, lacking a well structured succession, started to slowly decay, showing how the absence of planning can weaken even solid institutions.
When we talk about the business world, the recent passing of Silvio Santos, one of the biggest names in Brazilian television and founder of the Grupo Silvio Santos, calls into question the continuity of the company as we know it today. Throughout decades, Silvio built a media and business empire based on his own personal image, leaving a great challenge for his successors to deal with his absence.
And when it comes to the social sector, this pattern repeats itself. Remarkable visionary leaders, gifted with passion and vision, are the soul of many civil society organizations. These people dedicate their lives to a cause and to the common good, captivate people to contribute with their organization and manage it as if they were their own children. However, this same passion that structures and drives these organizations can become an obstacle when it comes to succession, resulting in the so-called founder’s syndrome. This phenomenon, characterized by the founder’s difficulty in delegating responsibilities or preparing new leadership, can establish an extreme dependency on its main spokesperson. Like so, it negatively impacts organizational culture, making leadership transitions much more difficult. The syndrome may also directly compromise the decision-making process, jamming the institution’s capacity for innovation.
Ending or reducing the effects of founder’s syndrome requires a clarity of purpose and planning, with actions that ensure a progressive division of the decision-making process as the organization matures. One of the main approaches is the strengthening of the organization’s governance through the creation of a Board, in which the members are truly independent and have real voice and power in decision-making. This helps because the inclusion of people with different profiles and with no emotional connections with the current leadership allows the renewal of ideas and the mitigation of the excessive influence of long-lasting leaders or even founders, ensuring that governance will be more balanced and representative.
This process is usually not simple once the distribution of power is not limited to technical matters and must consider the emotional connections and vanities inherent to human nature. Gradually sharing responsibilities and delegating assignments before the succession itself is a way to prepare the new generation of leaders and build trust in their capacities, reducing conflicts and possible resistances. Many organizations chose the creation of succession committees, who are dedicated to proposing an action plan, mapping talents and monitoring the succession processes, guaranteeing that they are well conducted.
The organization’s leadership transition, however, must be incorporated into a broader succession and contingency plan. A founder’s withdrawal is just one of the possible changes that may challenge the maintenance of an organization, and a good succession plan must also oversee the replacement of other key leaders and collaborators throughout time. Identifying key seats inside the organization and developing individualized action plans for those positions is crucial. IDIS went through a succession process in which the founder worked closely with the new leadership and the Board to ensure a positive transition for the organization, preserving its culture, values and acquired knowledge. And we currently have been working on the succession process for strategic directors and managers.
To reduce the stigma and fear of succession conversations in an organization, it is important that this topic is frequently discussed in a respectful and honest manner, together with the governance members and collaborators. When it comes to external communication, the best practice is to inform relevant successions to different stakeholders, partners and donors who are assisted by the organization. This assures that all parties involved are prepared and aligned with the transition process, diminishing the feeling of rupture that might be generated by change.
Financial sustainability is another essential factor in guaranteeing smooth succession processes. Endowments represent a strategic solution to ensure the longevity of a civil society organization. These funds, when managed responsibly, can provide enough resources to pay future executives, especially positions occupied by volunteers who will be replaced by paid successors. Beyond ensuring long-term resources, the creation of an endowment fund provides safety to collaborators regarding the future of the organization even after a leadership change.
Although the succession process is filled with uncertainties, when embracing new voices and knowledge, organizations have a chance to review their mission, activities and practices, aligning themselves with the new social demands and strengthening their relevance. Succession, nevertheless, should not be faced only as a challenge, but also as a window of opportunity to promote innovation, a chance to learn with the past to work on the future. The lack of succession planning can compromise the longevity of social projects and undermine thousands of people who benefit from it or even depend on these organizations. To leaders who will be followed, direct involvement with successors is crucial. Engaging with the matter in a proactive manner and before it is too late is the only way to ensure the impacts made in people’s lives are perpetuated.
“Receiving these awards makes me very emotional and fulfilled! We made many investments in people, processes and tools to strengthen our projects, and ending the year with this recognition reinforces that we are on the right path”, says Paula Fabiani, CEO of IDIS. “This is the result of the dedication of our team and council, in addition to the trust placed by our partners”, she adds.
