SUCCESSION PLANNING

December 18, 2025

TRANSITIONING & SUCCESSION PLANNING

Its true – Organizations should outlive, if not preferably outpace, the People – who start, build,& sustain it and sometimes unsustain it as well. This article is a result of continuous interactions with Leaders, their Organizations and others across 4 decades – Both Family Managed and Corporates, real & felt. As a Professional groomed to be an Intrapreneur since early days, up bringing has been a kind of Classical in the sense of mixing the Flavours of both Corporate and Family Business Styles & Culture, thanks to Business Owners and Superiors.

A firm believer in Observational Learning, having had much larger Customers and Suppliers, Learning has been tremendous over the Years – both Good & Otherwise. Many a times I have had the opportunity to look at both what should be and what should not be. Sustaining the success of Organizations across dynamic business scenarios, I firmly attribute to the resilience of the Top Management – their agility and ability to think differently and most importantly being appropriately Decisive.

Professionally or Owner Managed

Bitten by the Entrepreneurial bug, I decided to Superannuate on time. This decision was kind of influenced by my observations about lack of appreciable difference between a Professionally & Owner Managed Organization. It is also a decision based on What one should not do – Extensions. Many times I hear people remarking that “Owners cannot retire” as much as “Professionals don’t want to retire”. Though this appears to be dependent on Personal Priorities and Pre-occupations, I have observed that this is something to do with Self-confidence, ability to live beyond the Organization, the Trust they have on their second and third line irrespective of a Fellow Professional or a Family Member, and most importantly their own vulnerabilities post dis-engagement.

The Process

There is a need for me to make some submissions here – I have had the opportunity to get trained the Swiss Way, adopt the Japanese Way and live a Consumer life American Way. This being said, I believe in looking at every aspect of Managing or Mismanaging a Business as a Process. And Transition planning is one such critical Process.

Organization Design

Looking at Transition Planning as a Process, it starts with the very organizational design.
Trajectory of evolution of an Organization, though cannot be predicted accurately, need to be atleast visualized. Else may give way to either under and over staffed scenarios. I have personally preferred understaffed scenarios as a strategy until the Organization really Grows – for two reasons. Firstly, it prepares Employees for additional responsibilities and secondly, it cushions the Organization against adverse impacts. Given the different possibilities, an Organization Design should accommodate for both Growth and Stable phase. Opportunity to Grow Vertically in an Organization will depend on the Employee willing to take additional responsibilities.

Time Lapse & Promotions

Structured and Stream Lined promoting of Employees is certainly a way of Transition Planning. There are a few precautions though, which are pertinent – Promotion should be only for additional, well differentiable Role & Responsibilities. This should certainly be not based on time lapse, age & experience. It should also be reckoned that, as Employees Grow higher up in Hierarchy, Opportunities will become rarer. Promotion should also be not based on either output increase or sales revenue increase. This simply means, Promotion for the sake of Promotion and based on Year on Year increase in sales should be avoided.

Letting Go

Sometime earlier I have written an exclusive article on Letting Go as a Business strategy drawing parallel to Successful Batting in Cricket. Shall confine this time Letting Go from the perspective of Organizational Transition. Real Transitional Growth happens within an Organization and for the People in it, only when the incumbents are willing to Delegate and let go of their Authority and Control. This is true both for Grooming Next Gen Employees and Family Members. Leaders often ignore the fact that Controlling & Monitoring are very very different. Likewise, at some stage Organization may exhaust options to promote even Deserving Employees. This is the time when we should let go of such Good Employees – both for Organization & Employee sake. This is simply to avoid complicating the Organization structure. There are many successful companies/ organizations wherein the original promoters have relinquished their Ownership for the larger good of the Organization.

Succession Planning

Having been a witness to many dilemmas, both within and outside Organizations, succession planning is invariably biased. A lot of emphasis is given to Loyalty than that of Efficacy, however rigid and objective the evaluation process may be. Despite this, its important succession planning is built into the Organizational Planning Process. A good plan should include creating opportunities (vacancies) at regular intervals and letting go people, authority and control at regular intervals. A Leader is only good as much as he is willing to relinquish his own Role & Responsibilities. It is also a fact that only such Leaders can ensure Leadership pipeline. This is true both for Owners & Professionals, and should be seen only from that of Organizational Perspective and never from that of a Family or Loyalty.

Goals, Objectives & Measurements

Any Transition and Succession planning will not be complete without insistence of Metrics.
Mutual transparency about Expectations, Goals & Objectives is essential. Periodic review and reassessments will then determine the readiness of both the individual and the organization. Both for Professional and Family such measurements should be Professional and in its Truest Sense for the Organization to be successfully sustainable.

About the Author :

NITHYANANDAN DEVARAAJ

Dr. NITHYANANDAN DEVARAAJ (NITHIN) BE., MBA., Ph.D
Independent Board Member & Business Excellence Expert.
President – Coimbatore Management Association
Past National Secretary – The Institute of Indian Foundrymen.
Former MD / CEO of a German & Japanese MNC
Chairman – Shri Avinashiappar Trust
Past Managing Director & CEO – Flow Link Systems (P) Ltd ( a Voith Group Company )

Dr. Nithin has about 35 + Years of Experience in Engineering Manufacturing organizations. He has worked for LMW Group, L&T, Hitachi & CRI Group. He is considered to be a Professional with a rare blend of Intrapreneurial Orientation, having been a Business Head across Engineering Manufacturing Organisations / Industries.

Dr. Nithin is a Member in Governing Council / Board Of Studies of Universities and Management Institutions as a Management Expert.

Dr. Nithin is part of various industrial associations and professional bodies; he is credited with playing a leading role in bringing land mark changes in Export Incentives, Classification of MSMEs, CPCB Norms, Waste & Disposal Management. He also plays a pivotal role in training and development of educated Youth seeking employment opportunities.

Dr. Nithin Leads a team that turned around a division and a Company, and in establishing large scale projects as bench marks in industry (This Business has won several awards at National & Regional Level which includes – Indian Foundry of the Year, Young Foundryman and Foundryman Awards, 4Star Award from CII, Green Award & Safety Award from Tamil Nadu Government & at National Level from IIF, First Indian Foundry in the segment to get OHSAS 18001 & ISO 50001 Certification and Many Kaizen awards.)

Dr. Nithin is a Managing Trustee of a Family Managed Trust involved in activities like rendering Food, Shelter, Education and Medicare. Noted for rendering services during Chennai, Kerala, Tanjore & Nilgiris Floods.

Dr. Nithin’s Academics:

Ph.D in Management Sciences
MBA in Finance & Marketing – Gold Medalist and University Topper
BE Mechanical Engineer with Distinction
An IRCA certified lead auditor and assessor for ISO 9001.
A qualified auditor for EMS, OHSAS & EnMS
L&T Future Leaders Training at IIM – C

Dr. Nithin’s Professional Associations:

Member & Industry Nominee, Coimbatore Disaster Management Council
A Guest Faculty to Premier Management Institutes & Was Visiting Faculty to IIM – Calicut
An examiner for Management Qualifications & Assessor for Management Teachers
An acknowledged management trainer and consultant
Is a regular Business Column Writer.

Dr. Nithin is a Member of:

Foundry Development Council, Ministry of Commerce & Industries, India.
Institution of Engineers, All India and Coimbatore Management Association
Board of Studies in Universities & Premier Management Institutes

Dr. Nithin is Winner of:

The Outstanding Alumni & Distinguished Alumni Awards from PSG Institutions & Bharathiar University.
The CMA Golden Jubilee Year Best Manager award for the region.
The Best Management Student award and many accolades at National Level.
The Mother Teresa Award of Excellence for Young Business Managers.

Dr. Nithin’s Management Interests: