In the business world, you’ll find many passionate leaders who seem unlikely to ever leave the company. But our time here is limited, and life has a way of throwing curveballs at us whether we like them or not. It’s simply a fact that if you own a business, one day you and your fellow leaders will have to leave it, whether due to age, health concerns, or personal reasons. Of course, just because you’ll eventually exit the company doesn’t mean the enterprise should shut down too. If you want your business’ legacy to thrive, you’ll have to focus your efforts on succession planning.
What You Need to Know About Succession Planning
What is Succession Planning?
Right now, you may be asking yourself, “what is succession planning?” Simply put, succession planning is how a company secures its future by hiring, promoting, and/or training individuals to take on leadership roles as current leaders leave the enterprise. You might think of it as a ceremonial passing of the torch. As one team leaves, a new team steps in to carry on the business’ mission. Without proper succession planning, a business will struggle to continue its operation, as there will be no one available or remotely prepared to take on these vital leadership roles.
How Do Companies Develop Succession Plans?
The importance of succession planning should be abundantly clear. However, successfully crafting and implementing a succession planning strategy is a different story altogether. Every company differs in size, scope, location, and potential leadership candidates, meaning each organization must create a plan that suits its individual needs. Still, there are certain general guidelines every business should follow when forming a strategy for succession planning.
The sooner you consider your exit strategy, the better. You won’t be shipping off tomorrow, of course, but by being ahead of the curve you can outline a plan for how to go about finding optimal replacements. This head start also allows you to start focusing on the leadership development of your current staff members. It takes time to identify the right candidates, let alone train and evaluate them thoroughly enough for the new role. By starting early, you have more time to ensure the right people are on board.
Clearly Identify Roles, Duties, and Vision
One of the major challenges in succession planning is knowing and clearly communicating what roles and duties need to be fulfilled and how they will help steer the company into the future. If you started the business, you and your partners might know these things inherently. But when it’s time to bring new blood into the fold, you need to flex your leadership communication skills to get everyone on the same page. You might start including potential candidates in more closed-door meetings to help them gain insight into the company’s operations, for instance.
Consider the Plan When Hiring
If you already have a solid team, you’ll have an easier time finding the right people to take over in your absence. However, you’ll likely have to hire some new faces every now and then. With a solid succession planning model, you can hire new recruits with this template in mind. In other words, you’ll be able to hone in on specific traits and leadership qualities present in high-quality employees. Your succession plan should inform every hiring decision you make so you don’t waste any time finding and training the best people for the role.
When your business is growing, the last thing you might think about is leaving. However, failing to consider an exit strategy is a mistake that may cost the legacy of your organization. With proper succession planning, you can develop leaders within the enterprise and ensure the continued development of your business.At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.