Is your business ready for the biggest transfer of wealth in history?
30% of all businesses are owned by baby boomers, in the next 10 years, all baby boomers will have retired, either closing their business or selling it.
Some of you might be wondering what exactly succession planning is and how come it becomes so important for a venture. Some might even mistaken it for career planning. However, this is all about effective planning and implementation of flawless transitions of key lead role positions within an organization.
This is not the result of a one step process but includes all of the following:
– Recruitment of new talent
– Executive search
– Assessments for selection
– On-boarding the new leader
– Successful transition of the new leader
Objectives of Succession Planning
Key positions of an organization can become vacant anytime due to a number of reasons like resigning to join a new job, retiring at a particular age, getting promoted within the firm, getting deployed for new activities or getting placed in novel positions at the same level.
The main objective of succession planning is identifying these gaps in positions well in advance and developing the skill set of the current work force to assure flawless transition to the vacant positions.
Here are the key goals of succession planning.
– Identify the future leaders
– Maintain brand identity
– Minimize investor concerns
– Develop a long-term map for the future
– Stimulate professional development and collaboration
Benefits of Succession Planning
Timey succession planning in fact helps an organization to have a bigger return on investment. Moreover, you can have the privilege of enjoying good peace of mind by knowing that everything is planned to be in place in the near and long future. Here are some of the key benefits that come your way with a strategic succession planning.
Succession Planning Strategies
Simply going with the flow and doing the basics alone may not always help when it comes to important roles like succession planning. A thorough research and thinking has to be done to devise advanced strategies to assure smooth functioning of the plan.
Let us have a look at some of the key strategies that might help you to plan smartly.
1) Envision the future of your venture: Foresee the needs of the firm in the future and have a pool of talents ready in the corner that you can depend any time to ensure growth of business in the right direction. See that you don’t force anyone to take up the role but go for talents with enough drive and passion.
2) Define your legacy: Ensure that proper mentoring is done by leaders to help their successors to take their position with all confidence before they leave the organization.
3) Plan in phases: See that succession plan is done in phases and not in a hurry. You can plan for people who will be ready immediately and may be people who will be apt for the role after five years, as well.
4) Aim for continuity: More than the perfection, the plan should be to assure proper continuity of the role or the processes that were in action.
5) Create a visible career path: Make your current workforce a part of ongoing skill development and let them discuss career objectives and envisage themselves in the future of your business.
6) Create an exit strategy: In the process of ensuring leadership continuity, creating an exit strategy is very important which assures smooth working of the organization in the absence of a key person.