A Synthesis of Effective Practices of Managing Succession Planning in Accounting Firms in Botswana
Abstract
Succession planning continues to be one of the major issues facing the future of many accounting firms. Although it is inevitable for the current senior managers to leave their current posts due to resignations, retirement, ill-health, death or some other reason, organizations find themselves without a succession plan in place to take-over from the departed senior managers. Many firms have closed soon after the departure of a senior manager. In most cases, firms shut down due to the lack of qualified successors. Many firms have not developed prospective successors who are fit to form part of top management in future. They face operational challenges during the transition period to an extent of closing down their businesses. Many firms lag behind in terms of having smooth successions. They lack the knowledge and skills in succession procedures and have no clue on how to mitigate the problems they face during transition periods. Many studies on succession planning are based on family owned businesses. Researchers like van der Merwe (2011), Sardeshmukh and Corbet (2011), Stewart and Hitt (2012) and DeRue and Ashford (2010) have focused on family succession planning. Little is known about how accounting firms develop their successors. The main purpose of this study is to explore how accounting firms build up a succession plan that does not disrupt the operations of the firm. By exploring the best practices which can be adapted, accounting firms can manage succession from one generation of managers to the next without disruptions during the transition period.
Through a qualitative analysis of practices of two accounting firms in Botswana, it can be concluded that accounting firms maintain smooth successions by having scheduled recruitment procedures and a skills matrix which help them identify the qualities and experiences required at the top management level to support strategic plans. Accounting firms are fully aware of how operations can be affected by transition problems, and how to mitigate such problems. They offer on-the-job training to successors with the view of making them quickly get accustomed to managing an accounting firm. Both internally and externally recruited top management personnel are selected on the basis of their experience levels, so settling down is not a problem to them since they have broad insights of what do in an accounting firm. For a business to ensure its continuity there is need to train the prospective future managers and acclimatize them to the running of the business before the departure of current managers. This study recommends that accounting firms should have well thought out succession plans, which can be easily implemented, can fit well into their strategic plans and is able to carry the business into the future.
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