President and COO of BFL CANADA highlights the importance of creating and implementing a succession plan
Today's rapidly evolving business landscape faces several challenges, especially in the workplace. If there’s anything that pop culture has taught us, (remember The Office’s Michael Scott’s last-minute replacement Deangelo Vickers? Or Brooklyn Nine Nine’s Captain Holt’s replacement The Vulture?), having a clear and well-executed succession plan is no longer a luxury, but a necessity for organizations looking to ensure long-term viability and growth.
This is the sentiment espoused by Lisa Giannone, president and COO of BFL CANADA, one of the country’s largest privately held insurance brokerage firms.
“It's a critical element of long-term business strategy,” she says, remarking that as the baby boomer generation transitions into retirement, companies across industries are facing the challenge of addressing potential gaps in knowledge transfer, leadership development, and specialized expertise.
"In a private firm like ours, it's not like a public company where you can quickly bring in someone to fill a position," Giannone explains. "There's a culture that needs to be maintained, and the only way to do that is by having people who have been part of the business for a number of years, who’ve developed the necessary expertise, and who are committed to keeping the company going."
Giannone’s comments come as a newly released whitepaper from Blu Ivy Group exposes alarming trends that could have severe implications for business continuity and growth. The whitepaper reveals that 57 per cent of chief human resources officers (CHROs) and 75 per cent of people leaders are considering leaving their roles within the next 8-12 months.
This potential exodus could destabilize organizations by stripping them of institutional knowledge, weakening culture, and decreasing productivity. Additionally, with 43 per cent of CHROs spending less than 10 per cent of their time on long-term strategic planning, businesses face a precarious future. The relentless demands of crisis management are undermining sustained growth and competitive advantage, the report highlighted.
Recognizing the importance of proactive succession planning, BFL CANADA established a dedicated succession planning committee in 2018, shortly after receiving an investment from the Caisse de dépôt et placement du Québec (CDPQ). This committee, comprising both internal and external senior leaders, was tasked with identifying and developing potential successors for key roles, including Giannone's current position.
"We’re always planning three years out, identifying internal candidates who had the potential to step into these leadership roles," Giannone explains. "We put them through a rigorous process that included psychometric testing, executive coaching, and mentorship from our current leaders."
This comprehensive approach to succession planning not only ensures a smooth transition of power but also fosters a culture of continuous learning and development. Giannone emphasizes the importance of exposing potential successors to various functions and roles within the organization, allowing them to develop a well-rounded understanding of the business.
“It's really about investing in an employee development and training program,” Giannone says. “Cultivating a pool of qualified candidates for potential succession also enhances our overall workforce efficiencies and competencies. Seeking feedback also fosters a sense of ownership and engagement which helps with a smoother transition.”
Giannone outlines her five-step process that makes for a good succession plan strategy. The first order of business is starting the process early, not waiting until the retirement of the existing leader is imminent. Secondly, leaders in the workplace should identify the potential successors well in advance and begin their development. This plays into the third step, which is to “develop a well-rounded leader.”
“Exposing those potential successors to various departments and functions within the company is important so that they grow and develop. We all have our strengths, and we all have our areas to improve upon,” Giannone says. Transparency and communication are the fourth and fifth elements of BFL CANADA’s succession planning strategy. As such, Giannone stresses the need to keep employees informed about the process, building trust and confidence in the organization's leadership.
"We invest in people. Our business model makes it so that we have a very strong culture and that's how we retain our younger and up-and-coming talent because they know that there's opportunity for them to lead at a senior level in the future,” she added.
Giannone believes that companies must be proactive in their approach, constantly identifying and nurturing future leaders to ensure the continued success and growth of their organizations, especially as employers face an increase in turnover, along with the ability to retain and recruit employees.
At the end of the day, she asserts having a succession plan and communicating that plan, will ensure transparency and back and forth conversations where employers understand what's going well versus what isn’t with their employees.
“[Asking ourselves] how do we overcome the challenges? What are the tools that are going to be put into place to help overcome those challenges? It's okay to make a mistake. We learn from it, and then move forward. That's really important.”
