How Succession Planning for Companies Should Be
Many times when business owners talk about succession planning for their company, they discuss about the insurance policy that covers their family and estate taxes. Very few consider the future of the company without them. Because after all, if I’m still here and running things, why should I worry about who my successor should be?
In this detailed post on how Succession Planning is More than Insurance, we explore the different sides of succession planning:
“A Succession Plan looks at the people that make up the company today and how they are performing. It also takes a future look at the company to determine the talent that will be needed to run the company 5 and 10 years from now. A good succession plan even takes into account the death or retirement of the owner and the planned continuance of the operation. Succession Planning is a process for keeping experienced employees in the organization, so the business will continue to grow and prosper, with or without he current CEO. It is generally a 12 to 36 month process of preparation and should be an ongoing process after that. Succession planning can be a valuable tool to smaller organizations that have limited resources, and must rely on cross training the existing talent to perform well in many different positions.”
The long term benefits of succession planning are realized in the present by identifying and future leaders for a smooth transition when the time comes.
“Succession Planning over the longer term will provide the CEO/Owner the opportunity to view employees in functions that they were not hired for, thereby demonstrating their future value to your company. You will be able to identify the best and the brightest within your organization and move them to positions that can help you increase productivity, thereby increasing revenue. Succession Planning will not only help you cross train the Shooters and the Dribblers, it will identify the next generation of Coachers for your organization.”