Succession planning delivers payback.
See a Case Study by Peter Sergeant in the Knowledge Base.
Succession planning can remove many problems and frustrations.
Succession Planning takes a comprehensive approach to assist in structuring an orderly transition of management, key employees, and organisational sustainability. Deciding where the business will go in the future should be a primary objective because you want it to have a smooth journey. Family, employees, contractors, and others will depend on it for a smooth transition. Building a thriving organisation can take many years. Yet, it can come to an abrupt halt without succession planning.
Over the years, I have been involved with many business people and farmers who did no succession planning for one reason or another. Some of the reasons for this were:
- They thought they had everything under control.
- They didn’t understand the need for succession planning.
- They had no idea how to do succession planning.
- They couldn’t find anyone to help them.
- There was too much disharmony in the family, or no one cared.
- They didn’t want the truth to come out.
- They always wanted to think about it or do something, but never acted.
- They thought they were going to live forever.
Nobody likes to think about it, but someone will inevitably leave the organisation one day. Whether to retire, for health reasons, or someone dies. Your organisation can struggle or even fail and leave its dependents stranded if you don’t have a succession plan. A succession, or exit plan, outlines who will take over the company’s management and who will take over ownership when someone leaves.
Careful analysis will uncover conflicts inherent in your organisation. Only by planning and communication in a structured way will these issues be resolved and acrimony avoided.
You’re currently witnessing the impact of new and emerging succession management approaches. Modern succession planning processes no longer consider replacing the owner(s). Today the focus is on the ongoing talent and infrastructure being utilised. They also examine development options in the new global economy.
Succession planning can involve complex structures and financing, so ensuring the plan is attainable is a good idea. This may require you to seek external professional advice. Setting a realistic timetable and measurable milestones and sticking to them can be challenging. A succession plan can be a real problem and source of frustration if it is not well put together and appropriately resourced and managed.
Three key aspects of succession planning.
- Management succession planning
- Key employee succession planning.
- Business succession planning.
Where to start?
Start planning with the end in mind. Building a great succession plan takes time, energy, intention, and attention. Start by creating the best working conditions and build from there. Instead of approaching succession planning with doubt, consider involving your team and starting with optimism.
The sooner you start, the sooner you finish and can get on with your new life.
Quotable Quotes.
“Being specific about who is accountable for Succession Planning goes a long way toward preventing problems in the future”. Peter Sergeant
“If you wait for the right time to do Succession Planning, it will probably never happen”. Peter Sergeant