Lilian Madueke, a corporate governance expert, says the significance of succession planning for Micro, Small, and Medium Enterprises (MSMEs) remains undiminished.
Madueke, also Chief Operating Officer (COO) of Kaizen Academy Nigeria Limited, made the assertion in an interview with the Newsmen on Thursday in Lagos.
Kaizen Academy is a governance and strategy focused consulting firm that offer services capable of revolutionising the operational and governance structures of organisations.
She said that while MSMEs might perceive their business models as small, it was very imperative for them to adopt some vital dynamics of succession planning to engender business sustainability and longevity.
According to her, these classes of businesses must start early to think about succession, identify and develop talents for leadership roles, document processes and knowledge and build strong organisational culture.
“MSMEs can also consider family succession but must ensure that competence and merit are prioritised over family ties to maintain business effectiveness.
“They must however not limit search for successors to internal candidates as bringing in fresh perspectives from outside the organisation can invigorate the business and bring new ideas to the table.
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“MSMEs should also document succession plans in writing, test the plan, review and update, involve key stakeholders and communicate transparently.
“It is important to remember that even though MSMEs might have unique challenges, the principles of succession planning remain applicable.
“A well-executed succession plan can ensure the continuity of your business, preserve its legacy, and position it for future growth and success,” she said.
The Kaizen Academy boss, addressing gender and youth inclusivity on boards, said its adoption was not only a matter of fairness and equality but also a strategic imperative for organisational success and growth.
She said to drive its adoption, advocacy and awareness, education and skill development about its benefits was crucial.
“At Kaizen Academy, we collaborate with organisations, institutions, and government bodies to create a collective impact and extend the reach of your inclusivity initiatives.
“We have established, through our partners and directors, mentorship programs that connect aspiring leaders with experienced professionals, fostering guidance and networking opportunities. We also try to sensitise our clients through our Board evaluation engagements of the criticality of succession planning for all types of businesses’
“Finally, we recognize that succession planning is a critical part of business continuity. We therefore recommend that regardless of the maturity stage of any firm, it should be given utmost priority to ensure the business’s sustainability.,” she said.