A succession plan isn’t a one fit all plan it has to be individually tailored to each company. It also needs to be regularly reviewed as the business evolves as well as the roles of key personnel &/or partners within the company.
Succession planning isn’t just for the director of the company, there should be something planned for a number of different key figures for example in an Accounting firm this might include practice manager, taxation manager, SMSF manager, head bookkeeper, administration manager etc.
When you set up your business development plan you will identify the key people that you need to set up a succession plan up for. If you don’t have a business development plan in place then at least consider doing a SWOT analysis on your business, this will not only help your business but will also identify the key personnel in your organization.
Wait, What is a Succession Plan?
A succession plan is a way to help provide your business with stability and continuation when facing changes to the core structure of a company. These changes are often unforeseen such as the sudden death of a director or a shock resignation of a long term employee.
Having a plan in place to deal with these unplanned eventualities reduces any fallout within your business and makes a smooth transition possible.
As previously mentioned every business is different which is why it’s important to tailor the business’s succession plan to the unique needs of your business.
How Do I Set Up a Succession Plan?
Take a bit of time and think about every person in your business and what would happen if any of them left with no notice (including yourself). Is there anyone who can perform their duties? Would things fall through the cracks?
When you answer these questions you’ll be able to make wiser and more informed decisions around employee development & advancement. It also helps you to define the key roles within your company because sometimes it’s a role that you don’t think about that is more vital than you realize.
When you clearly acknowledge these key roles you can develop better support and knowledge transfer processes around the positions.
Succession Plans Can Help Employees
A succession plan can also be great for your employees as it can create a roadmap for advancement for them, especially as your business grows. Not only do you have security knowing that you have someone ready to step into an empty role, it also provides an opportunity for them.
This process should also help with your talent retention.
Succession Planning for Business Owners
Of course most people think of succession planning for when you want to retire or sell your company and this is important to consider as well. Having an exit strategy in place definitely makes your business more appealing and helps you feel confident that you are a creating not just a business, but a legacy.