Have you ever thought about writing a succession plan for your business?
And if so, have you progressed beyond just thinking about it towards concrete action?
In addition to being one of the most talked about TV shows of the past year, Succession (Planning) is described as – a strategy for passing on leadership roles—often the ownership of a company— to an employee or group of employees. It ensures that businesses continue to run smoothly after a company’s most important people move on to new opportunities, retire or pass away. (www.investopedia.com)
We have put together 5 easy tips to consider when trying to create a Succession Plan
- Proactivity
Best practice is to be on the front foot. Start the process early. Document your thoughts and share them with your key advisers and family members. 80-90% of a plan with a few gaps to fill is much easier to complete than a blank screen. A common problem is that proper thinking about succession inevitably starts when health declines. Often this is when emotions are most likely to get in the way. A clear unpressured mind is required to do this justice so start early and evolve your plan over time to ensure the right decisions are being made. - Naming Succession Candidates
You may have already identified the key people to take over your business. It does not matter if you haven’t. Look around and list the traits in people that you may want to succeed you; hard working, energetic, sales skills, industry knowledge, software know-how or the ability to analyse financial data may all be necessary skills to the future success of your business long after you step away. - Professional Development
Perhaps you are already investing heavily in your team; if so, step it up even more for those key successors. If not, it’s never too late to start. And your staff will be grateful for your commitment to their success. Transparency is a wonderful thing and having honest discussions with the key people in your plan will make them feel valued and appreciated. - Integrate the Plan into Your Recruitment Process
Identifying your own values helps you identify the right people for your business. Whilst the right technical skills are important to any successful appointment, so too is a focus on core values. Are your employee’s values aligned with those of your business? A person with differing values is going to take a lot of convincing whereas the right person will be a lot easier to train. - Trial Run
Enacting a trial run of your succession plans enables you to test your own thinking. Once you have identified the right plan and people for your business, step away and see how they cope with the additional responsibilities in a temporary capacity. Have you missed anything vital to your business’ success longer term? If so, fine tune then test again. What a great way to show confidence in both your staff and your leadership.
Inspired to start work on your own succession planning? Reach out and we can put you in touch with people who can take you every step of the way.
Todd Coppin, Co-Founder
