If you own a company, you can’t afford to think just about the day to day. In fact, even planning ahead for your own company’s future while you are still involved might not be enough to protect your business from success long into the future. This is because you can’t afford to neglect the power of a process known as succession planning.
Succession planning refers to the process for developing, identifying, hiring and training new leaders who are eligible to replace older leaders when those leaders retire, pass away or leave. This process greatly increases the chances of capable and experienced employees being able to step in and assume these roles as they become available.
There are many different facets involved in succession planning and this process is most successful when it is implemented many years in advance of an owner thinking about leaving. This is because there are many components to establishing a leadership and transition plan and identifying and training the proper timeline to take over the company.
Organizations use succession planning as one process to ensure that the right employees have been recruited, developed, and trained to fill key roles within the company. Top talent employees should then exercise their skills, abilities, and knowledge to be prepared for a promotion and advancement into increasingly more challenging roles.
This gives the owners of the business and other key employees who are planning an exit in next several years the peace of mind that someone is there to step in to these important roles as needed in the future. If your business has not yet incorporated a succession planning into its long range goals, schedule a consultation with an experienced business succession planning lawyer today.