For most businesses, December is when plans are made on how their first quarter (and rest) of the ensuing year will look like. Although such a key strategic function is normally executed by top management, (leadership), with the oversight of the board, it is up to the leader in the driver’s seat to direct affairs for these aspirations to be achieved. A leader makes or breaks the organisation. As the saying goes: “a leader is one who knows the way, goes the way, and shows the way”.

To be a leader of repute and experience, one must have been in the trenches, had some bruises, won, and equally lost some battles. Over time it becomes necessary for the entrepreneurial leader to take a back seat and allow others that have been groomed and have acquired the necessary skills and competences to take over the mantle and steer the business to the next phase.

Succession planning in business, though a very brilliant concept, suffers many setbacks in most African SMEs and private organizations. The question is “when do entrepreneurial leaders know it’s about time to hand over the steering wheel to another person, while they serve as mentors?

In this article we provide a few pointers as to what may be clear signs that it may be time to let your tried, tested, and seasoned ideas continue to fashion the growth of your business, while your physical presence steps aside.

Faded passion.

For every business, the leader’s passion and inspiration are the catalysts of staff creativity, motivation, and productivity. The leader is the spark that lights the team for a common cause.

While all staff, including departmental leaders, have some low moments for one reason or another, whenever the entrepreneurial leader begins to experience continuous loss of interest and motivation to drive the organisation, it is a clear sign you should think about giving way to fresh minds.

Recommended article: Walk the Entrepreneurship journey with these ideas

The unintended effects of this fading passion are staff disarray and noncommittal to business strategy and disintegration of shared values. Employees may not have bad jobs but bad bosses. When the leader lacks passion, the ability to inspire others will not exist. For a leader who wants to leave a legacy, it is best to quit when your zeal consistently takes a dip. That way, your integrity, values, and ideas remain intact and still hold sway in the organization. Otherwise, your negative mood will filter right down and cause you to lose even the most loyal customers.

Mass exodus of staff

Employees will always quit for many reasons; better remuneration, office politics, convenient office location, among others. But when a business begins to experience a massive exodus of key staff for reasons other than any of the above, it is a wake-up call to leadership.

Resignations are often a signal for a leader to reflect on the organization they preside over, as well as their leadership skills and styles. Do you seek feedback from your staff on their resignations? Do they feel unsupported? Are you not communicating your ideas and mission well to them and so your team does not see the future?

If you’re drawing a blank, it’s probably a sign that your leadership style doesn’t match the company’s workforce any longer.

Continuous resignations drain remaining employees emotionally and demoralise staff. They equally affect the business’ day-to-day running as it takes time to recruit new staff.

If you fail as a leader to keep your most valuable asset–staff, it is best you fire yourself before your board or customers fire you.

Lack of innovation

Businesses survive and are sustained on ideas and initiative. At first, you were a well of ideas that the company depended on for a profit, but if those ideas are no longer relevant, it could be time to recruit and surround yourself with new and sharper minds or humbly give way to the next generation.

When you are stuck and have no clue as to how to improve the company’s culture, stay innovative, and eventually increase the company’s bottom line, you are as good as being fired.

Recommended article: 5 Essentials for Start-ups’ success in the Digital Economy.

Consistently, leaders should reinvent themselves, educate themselves, surround themselves with a pool of good talent and benchmark.

For instance, today’s business is being transformed by technology leading to increased complexity at every level.  This complexity at the same time offers unlimited opportunities, constant innovation out of which stronger legacy systems can emerge.

If entrepreneurial leaders realize that the speed of innovation is far beyond their reach, it is better to preserve the longevity of their business by giving way to other people who are future fit for the organization.

In our work with entrepreneurial leaders in many fields, it is evident that the defining factor between successful and failed leadership is the kind of attitude which filter down through all the ranks within the organization.

Watch these signs and take steps to remain relevant; know when it’s time to “retire” honorably.

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