Flat Org Structure vs. Succession Planning

This entry is in response to the Talent Management issues raised in a few entries ago. This is the issue:

In flat organizations, it is difficult to convince existing leaders the merits of Succession Planning & Talent Management. This is true when those leaders know that there is no where else to go. The only other 'higher up' position is the CEO. So how?

This is tough. I can only think of three solutions:
1. Spin-off new small Business Units
2. Special Projects
3. Specialist Ladder

Before I continue , I have to make this statement: Embark only in pursuing these options ONLY IF the existing leaders are worth keeping.

Ok. Now let me explain:
1. Spin-off new small Business Units - break up the the entire business into smaller Business Units (BU). The beauty of this is that the BUs do not need to be officially registered. Just make the BU Head be in charge of Revenue and Profits. Caution: Ensure that there will be no in-fighting among BUs.

2. Special Projects - re-create the organization as such that Departments become secondary and Projects become primary. Most Consultancies are managed this way. The existing leaders can then be heads of various Special Projects (hopefully each project lasting avg. 2 years).

3. Specialist Ladder - Instead of Heading a Department/Division, existing leaders who are technically inclined can be promoted into 'Consultant', 'Advisor', or 'Master' positions in subject fields that are important to the company.

No easy way out.
-TURD-