Succession planning is the process of future-proofing your business. It helps your organisation transition smoothly from one leadership to another. The process also focuses on keeping talents within the organisation. With a sound succession plan, you can identify emerging leaders and hone them to fill key roles in the company.
Some businesses only think about succession planning when a leader is about to leave the organisation. But, this isn’t the only instance when you should consider it. Perhaps, you foresee selling your small business within the next five years? Maybe you’d like a family member to head the company once you retire?
Creating a succession plan could be done well ahead of time. Early planning could be handy, especially when unexpected events happen in the organisation. It lets you maximise your company’s value and potential. Without a succession plan, the future of your business is at risk.
Here are other reasons to start developing your succession plan:
Preservation of Organisational Knowledge
In succession planning, the transfer of knowledge is as essential as changing leadership.
Knowledge management helps you identify, collect, and archive organisational information for future use. It could help reduce learning curves and decrease training time for key positions in the company. This is helpful, particularly when there’s a limited time to train your successor or new leaders.
Replacement of Specialised Competencies
Finding replacements for employees with specialised skills or competencies could be laborious and costly. When you have a succession plan on hand, it could help lessen the impact of sudden vacancies in the top positions of your organisations.
Identification of Skill Gaps
Developing a succession plan results in the identification of skill gaps that you need to address. Once you’ve identified these missing factors, you could include solutions or training recommendations in your succession plan. Furthermore, you could customise your training programs based on the learning needs of your successors and employees.
Development of Employee Retention Programs
The transition period from one leader to another could be a stressful time for employees. This is why employee retention programs should be part of your succession plan. Invest in human capital and job development.
Ensure that current employees are equipped with the necessary skills suited for various positions within the organisation. However, don’t mistake this as a linear career pathing. In succession planning, it’s essential to match talents with tasks and skills with various positions. This way, your employees will have more opportunities to move in different roles in the company.
Creating a succession plan doesn’t have to be an arduous process. With the help of experts like our team at Kidmans Partners, you could have a well-designed succession plan for your business.
For more information on succession planning and what we can do to help, call us at (+613) 9836 2900 or fill out our contact form.