Why your business needs a succession plan

Why your business needs a succession plan
November 3, 2017 Editorial Team
image of Succession-planning

Every business needs a succession plan. Whether you like to admit it or not, the day will come where you will leave your business and it is absolutely imperative that you plan for that day.

A succession plan ensures a business can continue to grow and perform when they lose key talent. It is setting out provisions for the development, replacement and strategic application of key people over time.

So how do you create an effective succession plan? Whether you are developing a plan for a small, medium or large enterprise, an effective succession plan boils down to the following steps.

Establish the type of plan you need

In order for a succession plan to be effective, you must establish clear goals and objectives. In short, you need to define the type of succession plan your business needs. What concerns are leading you to create a succession plan? Are you worried about high turnover? Are staff getting more competitive offers elsewhere?
Clarifying the why will help you put together a plan that meets your businesses needs.

Define key influencers

This is a crucial point to consider. Part of putting together an effective succession plan means defining future factors that will influence your company. You may see emerging trends in your field that will have to be factored into your succession plan.

Make sure the plan fits

You have to ensure your succession plan fits with your company’s overall strategic vision. Your strategic vision defines who you are and where your business is going. Any business plan that ignores their existing strategic plan is doomed to fail – plain and simple.

Identify sources for successor candidates

Now it is time for you to identify successor candidates. Essentially you are developing a potential candidate pool based on the positions identified in your plan. Make sure you provide training to peak performers in your business and do not be afraid to do a trial with potential successors.

Shape action plans.

Last but certainly not least, a succession plan by itself is pointless without a clearly defined plan. You need to compile a plan with concrete action plans, timelines and measurable goals. Make sure you outline who is responsible for tasks or applying processes.

Last but not least, it is handy to remember that a succession plan can help identify gaps in your business and where to focus your recruiting efforts.
At BDH Leaders, we can advise you on how to create the most effective succession plan. View all our services here