Succession Planning

 

      Leadership changes carry great risk to shareholder value.  This alone makes succession planning among the top concerns of businesses today.  Effective planning must be viewed as a critical component to preparing the next generation of leaders and securing the company’s market position.  Most of us in leadership would, at some point, like to live out our personal “bucket list.”  Thoughtful planning can not only enable a company to continue to thrive in the midst of leadership changes, but can also allow for a well-timed and favorable exit strategy for those who have paved the way but are now ready to transition into the next phase of life.

So why do so many companies have ineffective plans, or no plans at all, in place?
Why is it such a struggle?

Contributing factors include:

  • A general tendency to put it off due to busyness or the thought that, "We will address it later."
  • A lack of strategic direction and the many perspectives on the “right” future of the business.
  • No formal process for identifying the talents and abilities needed by the next generation of leaders.

 

      Preparing ahead will result in a smoother transition as existing leaders phase out of the business.  In addition, if an unexpected event happens, rendering a leader no longer able to function in the role, preparedness will have been proven essential.  Employees, customers and vendors will be assured that the business will continue to move forward when advance planning and implementation is done correctly.

 

The succession planning process should address the following areas:

  • The future plan and growth of the business.
  • The personal future plans of the exiting leader(s).
  • Internal talent development of potential successors for key positions.
  • Identification of areas where internal talent is not an option and plans established to address the key positions.
  • Formal Succession Plan developed and presented to key personnel.

 

      Ideally, succession planning should occur gradually over time.  However, this is not always possible.  Either way, it is essential to plan a favorable outcome which will not only secure a sound legacy but protect those employees who will remain. 

 

Please email or call me today and we can discuss how to begin this planning process.

 

A Succession Plan in Process!
A Succession Plan in Process!