There are many companies we come across that consider succession planning being applicable only to family-run businesses or large corporations. However, succession planning should be an important part of any company’s Strategic Plan.
Without a Strategic Plan, a company is without a vision for its future; without a Succession Plan within the Strategic Plan, a company cannot ensure that it will continue to have qualified employees who can help the company forge ahead. As such, succession planning should be a part of any strategic planning process and vice versa.
Identifying Your Key Players
Developing an effective succession plan means identifying key positions within the company as these positions are typically the most difficult to replace within the company. Once key positions are identified, employees can be groomed to fill these positions. Any gaps between each individual’s skill and the required qualifications can be narrowed gradually.
Make the Most of Your Up-and-Coming
Part of the planning for any form of business succession includes creating a viable game plan for educating individual employees. Projects above the normal scope of duties for an employee or even formal training, such as a certification program, will provide learning opportunities for the successors. Alternatively, job shadowing is an excellent way to increase the competency of a given employee without the expense of seminars or certifications.
Finalize Your Goals and Look to the Future
A Strategic Plan must emphasize the company’s mission and goals above everything else. A well-organized plan will include strategies to minimize tax burdens on the next generation of business owners. With this plan, up-to-date employee manuals, estate planning documents and management priorities should be available. Obtaining a current valuation for the business is also advisable.
Providing a framework for succession decreases the anxiety felt by both employees and management during any upheaval. Your Strategic Plan for a successful business succession can mean the difference between a viable company and a sinking ship.
