An analysis of the implementation of succession planning practice in the banking industry in Zimbabwe

Abstract

Succession planning studies have been mostly conducted on family owned businesses due to the fact that the majority of family business operations start and end with the initial owner.This study focused on banks for the simple reason that they are custodians of public funds and are expected to be accountable to various stakeholders.The purpose of this dissertation was to investigate and draw inferential conclusions pertaining to the effectiveness of succession planning in Zimbabwe’s banking industry. This was done through analysisofthe banks’ currentimplementationprocessof the practice. By virtue of standing regulatory requirements, banks are expected to have business continuity plans in place, particularly for top leadership positions, so the assumption is they already practice succession planning. The study intended to analyse the current succession planning practice, examine the challenges banks are facing in implementing it and discuss the strategies that can be adopted to improve it. Empirical data was obtained through administration of exploratory interview questionnaires to thirteen respondents in the banking industry. A qualitative philosophy was adopted and the obtained data was analysed using the content analysis approach. Findings were tabulated and discussed. The study concluded that, although banks have succession plans in place as required by the regulatory authority (Reserve Bank of Zimbabwe), the implementation process of the plans is flawed by numerous challenges, amongst which lack of management support tops the list. The process is therefore not running the full cycle.In light of these findings, the researcher recommended thatsuccession planning be included as a key result area for top management’s performance appraisals. The Board should be held accountable; human resources management personnel should competently facilitate implementation with the aid of robust HR systems. Succession planning should be formulated into policy in order to strengthen the practice. The policy will make it more communicable and involving such that it seizes to be a mystery or just another HR practice. The regulatory authority is advised to proactively monitor and ensure banks adhere to identified successors’ developmental plans they would have proposed and agreed on. The researcher also recommended need based training and continuous professional development of the identified successors in order to ensure desired outcomes are achieved. This should be done with the aid of periodic evaluations so that progress can be measured.