How would your business perform if your top three employees left your organization tomorrow to join a competitor? What if members of your senior management team parted ways to begin their own businesses? If your CEO became terribly ill and couldn’t perform his duties, would your business continue to run smoothly?
Succession planning is essential for keeping your organization moving in the right direction even when several key members of your staff jump ship, retire or move on for other reasons. As important as succession planning is, many companies forgo strategizing a plan to retain their best people to eventually take over different roles. Succession planning isn’t a rigorous assignment, but because the efforts of the process aren’t often revealed until a team member leaves, many businesses don’t take the time to start planning.
Deciding the key employees who will ultimately step into leadership and senior management roles is imperative for maintaining business success during any economic climate or business situation. Succession planning is also an office morale and engagement booster. Grooming employees for their future roles by giving them more complex tasks and investing in their growth keeps them focused, motivated and loyal to the company.
Here are four additional reasons to start drafting your organization’s succession plan:
Whether your employees leave to start retirement life or plan to begin their own businesses, having a succession plan in place will help you more quickly identify which employees will take over your company’s open positions so your business can continue to run as normal.
Less Time and Money
Dedicating time to plan the future of your organization will save your company time and money. Plans to promote and train people within your company means less time spent recruiting for external candidates, interviewing them and checking their references. Money allotted to those efforts will also decrease with a solid succession plan in place.
Weakness is Uncovered
Finding future leaders reveals the strengths within your workforce, but it also uncovers the weaknesses that your organization must work on to secure business and financial growth. Help areas of your company that you discover to be weaker than others by offering training and resources that will help improve performance.
Get a Bird’s Eye View
Evaluating your workforce in preparation for succession planning gives you a great perspective of the talent in your organization. Ascertaining who should fill the shoes of another will help your team better understand the day-to-day happenings of your business. So as you’re planning don’t solely include roles for higher level executives. Incorporate middle managers and their direct reports to create a comprehensive succession plan.
For additional information on the benefits of succession planning or how to develop your company’s plan, please contact a member of CAI’s Advice and Counsel Team at 919-878-9222 or 336-668-7746.
Photo Source: Victor1558