Succession planning is important to safeguard a business’s future and prevent it from losing momentum. Yet many companies lose sight of this critical step, to the detriment of their employees and, ultimately, the business. According to DDI’s global survey of HR leaders, over half of executives fail in their roles, while research by FranklinCovey reveals that leadership transitions often have a failure rate averaging 40%.
Many of the failures of leadership training in finance are linked to a lack of succession plans that pave the way for smooth leadership transitions. Without backing from top leadership, succession initiatives lack the necessary resources and commitment, which derails them. Similarly, using inappropriate or biased criteria to identify successors can lead to appointing individuals unsuited to leadership positions.
By far, the biggest reason succession plans fail is the lack of robust leadership development programs. This is especially relevant to the financial industry, which faces a dynamic regulatory landscape and fast-moving technological developments.
Accelerating Leadership Development
The finance sector demands agile, well-informed leaders who can navigate complex regulations, market shifts, and technological advancements. Traditional leadership development programs often take years, but eLearning powered by a Learning Management System (LMS) accelerates this process by delivering targeted, personalised, flexible, and data-driven training.
Using a modern LMS to deliver eLearning for succession planning in finance allows organisations to create structured leadership development programs designed specifically for high-potential employees. Through adaptive learning, AI-driven insights, and skill gap analysis, finance professionals can access role-specific courses on risk management, financial strategy, regulatory compliance, and leadership principles. By zoning in on the skills needed to take on leadership roles, learners gain expertise at a much faster pace.
Retaining Institutional Knowledge
Institutional knowledge refers to collective experiences, understanding, and insights accumulated in an organisation over time. You don’t want to lose this when somebody leaves or retires.
One way to pass this valuable knowledge on to your rising stars is by capturing it and transferring it to successors. This is where an LXP (Learning Experience Platform) is invaluable and eLearning content authoring tools can help streamline the succession planning process. For example, using TalentLMS, you can drag and drop various media elements like videos, presentations, and documents to build engaging and dynamic courses. You can utilise existing content or start from scratch, and enhance your interactive eLearning for finance teams with SCORM, xAPI, or cmi5 file uploads.
You can also assign successors to work directly with executives – through collaborative projects or a mentorship program – to help them get more hands-on experience. With immediate feedback on their performance via the LMS, trainees learn which skills and characteristics are important to prepare them for the role in the future.
For example, critical financial decision-making is a skill that is often only developed over time. An LMS can integrate interactive simulations and case studies that mimic real-world financial challenges, such as crisis management, investment strategies, and risk assessment. These immersive learning experiences help potential leaders quickly build confidence in handling high-stakes scenarios.
Customisable Training Paths
eLearning platforms allow tailored programs for different roles that align with succession goals. An LMS for banking professionals lets financial organisations’ training and L&D personnel create structured leadership development programs for high-potential employees. Learning journeys tailored to specific roles ensure these employees develop the expertise needed to transition into leadership positions more efficiently.
Start implementing personalised learning journeys by creating portals for each role in your organisation. Employees can sign up for and access these portals from wherever they are and from any device. From each portal, structure the information into various topics and create the appropriate training and development materials for each role.
With AI-driven LMS platforms, training can even be customised to individual learning styles and career progression. AI tracks performance and recommends relevant courses, ensuring that employees receive online learning tailored to their strengths and areas for improvement, accelerating their leadership readiness.
Customising eLearning Paths for Leadership Development
Cost-Effective Scaling
Digital training reduces the need for expensive in-person leadership programs. This has two distinct advantages: first, it makes succession planning accessible across global finance teams. Second, it allows companies to deliver training to multiple learners at minimal additional cost. This scalability ensures your program continues driving value without draining resources.
As your customer base expands, the LMS streamlines scalability by automating course management, updates, analytics, and assessments. Whether you’re training 10 or 10,000 learners, your LMS allows you to manage and prioritise users, allowing flexible online training for bankers and other financial executives.
Progress Tracking & Analytics
Learning management systems like aNewSpring and TalentLMS are highly recommended for financial succession planning. Both include functionality to monitor readiness and identify gaps in leadership skills, which helps in planning your succession training. You can track training from every angle with real-time reports, dynamic dashboards, training infographics, and exportable Excel sheets.
With detailed analytics on learner progress, engagement levels, and assessment results, HR and leadership teams can use these insights to identify employees ready for promotion and those needing additional training. This makes succession planning for financial institutions more data-driven and efficient.
Fast-track Your eLearning for Succession Planning In Finance
At New Leaf Technologies, we have been working with clients in the banking and finance industry for years and understand their processes and needs inside and out. If you need advice on using eLearning for succession planning in your banking or financial workforce, get in touch and let’s show you what we can achieve together.
