What is a succession plan and does your stokvel or burial society need one?
If your group wishes to ‘live on’ beyond its founding members, these are the four important things it must consider, says Tyvision Media
Will your stokvel or burial society continue to exist after the current membership? Should stokvels and burial societies exist for one “generation” only or should they be intergenerational and be continued by next generations? These questions raise the important issue of succession planning.
Succession refers to “new” people being given a chance to take over and continue the existence and functioning of a stokvel or burial society; it's when there's a constant change in leadership and membership from one generation to the next.
While succession planning refers to creating a strategy and setting up processes that will enable the stokvel or burial society to continue existing and benefiting individual members beyond the founding leaders.
The goals of a particular stokvel or burial society determine the level of importance of succession planning for that group.
Many stokvels have the broad objective of creating (through collective actions) value or wealth, while burial societies aim to provide a dignified funeral for their members. It's generally assumed that stokvel members want to create wealth not only for themselves, but also for their families, specifically their children. It's also assumed that burial society members wish to provide decent burials not only for themselves, but also for loved ones. Based on this it is important for both groups to prioritise succession planning.
Essential considerations
Here are four important things stokvels and burial societies need to consider in relation to succession planning:
1. Growth
There must be a plan to grow the membership through the recruitment of younger members. This will allow older members to mentor younger members on the objectives and culture of the group.
Younger members can also add value through adapting ever advancing technology to the benefit of the group. For example, they may be able to introduce newer technologies that make for safer financial transacting.
2. What the future may look like
Stokvels and burial societies should reflect on what the future would possibly look like and how they would wish their group to exist in said future scenario.
An example would be a burial society acknowledging that the value R10,000 provides for a funeral today, may not be the same for a funeral in 10 years time. Things would be more expensive, meaning that their cover value and premiums would have to be adjusted accordingly.
3. Key positions
The constitution of the stokvel or burial society should be clear on the importance of succession and the key positions and responsibilities that will allow for the group's continuity beyond the current membership. Potential leaders in the key positions should be identified and groomed for said responsibilities.
4. Leadership
Current leaders should not see succession planning as a threat to their positions and roles, but rather as an opportunity to teach the next generation of leaders for the continued benefit and existence of the group. One attribute of good leadership is a positive legacy that includes being recognised as one who ensured the continued survival of the stokvel or burial society.
Good leaders see beyond current circumstances and guide groups towards decisions that will be beneficial later. A good leader would anticipate a future challenge and guide the group to a solution. For example, creating a succession plan that will produce new leaders who will ensure the continued growth and legacy of the group.
Succession planning made simple
Tyvision Media — producer of the financial literacy TV series Ke Zaka: Stockvel Insights on Business Day TV — sources relevant, credible and reliable information to help stokvels and burial groups make the best possible financial decisions with their available resources.
It can also assist groups with professional administration including scheduling meetings, setting agendas, taking minutes, record-keeping and the development of succession plans.
Tyvision Media understand that each stokvel or burial society is unique and so tailors the support that it provides to each group accordingly. For assistance in the professional administration of your group, email alucias@tyvisionmedia.co.za or WhatsApp 081-596-1065 or 072-938-7256.