Business Succession Planning

Welcome to the Business Succession Planning workshop. The loss of valuable leadership can cripple a company. Business succession planning is essentially preparing successors to take on vital leadership roles when the need arises. 

Whether it is preparing someone to take over as the sole proprietor of a small business or a position of leadership in a corporation, business succession planning is essential to the long-term survival of a company. This course will teach you the difference between succession planning and mere replacement planning and how to prepare people to take on the responsibilities of leadership so that the company thrives in the transition. Click Here For More Info

Succession Planning Vs. Replacement Planning 

Succession planning and replacement planning are two different things. Replacement planning is focused on identifying immediate understudies, while succession planning is focused on developing talent to move forward. 

What is Business Succession Planning? 

Successful succession planning is related to leadership development. It develops a pool of talent so that there are numerous qualified candidates throughout the organization to fill vacancies in leadership. Succession planning used to concentrate on developing leadership at the top level, but now it is building a strong talent base, which helps to increase employee loyalty and ensure the longevity of the company. This strategy requires recruiting qualified talent, creating a talent pool, and instilling loyalty.

BENEFITS OF SUCCESSION PLANNING:

• Decreased turnover 

• Increased employee satisfaction 

• Improved commitment to company goals 

• Enhanced image of the organization 

WHAT DOES SUCCESSION PLANNING REQUIRE? 

• Identify the long-term goals and objectives of the business: The long-term goals directly relate to succession planning. Is the company’s goal to grow or maintain its current position? Will it Change is the law of life. And those who look only to the past or present are certain to miss the future. John F. Kennedy Page 61 expand into other fields? All of these questions need to be addressed before creating a succession plan. 

• Understand the developmental needs of the company and identify employees who fit these needs: The responsibilities of employees change over time. Some positions may be eliminated in the future while others will be added. 

• Recognize trends in the workforce and engage employees to build loyalty: Understanding workforce trends will help you predict the needs of your organization. For example, are your key employees nearing retirement? Have you invested in talented employees to take on additional roles? 

What Is Replacement Planning? 

Replacement planning works under the assumption that the structure of the organization will not change. This is easier to apply in small family businesses that do not have any goals to expand or grow in the future. There are typically two or three “replacements” identified in the organization chart. Each backup is listed with his or her ability to replace an existing leader. The employees are not necessarily developed to understand the new working environment or smoothly transition into his or her new responsibilities.