Focusing on the business goals you want to achieve within the upcoming quarter is essential for sustained success, but do you know what else is equally important? Succession planning.
What Is a Succession Plan?
A succession plan serves as a blueprint for the future organizational structure of your business. While you hope against personal tragedies or unexpected resignations, it’s always beneficial to be prepared when these events happen. There will also come a time when your current leadership team retires. For all of these reasons, it is critical to have a plan in place so your business can keep running smoothly amidst change.
When establishing a succession plan, begin by listing out the key positions within your business. Then create a specific plan that states who is going to assume each job and how they are going to operate within that role.
Next, map out a comprehensive explanation of each role, its requirements, and the type of person who would be best suited for it. You can even select the successor in advance once you have all of the details in front of you.
Taking the time to create a plan of action for each position within your business makes transitions less complicated. You also enable people to prepare for their future roles more efficiently so they feel prepared and confident.
For more on creating a succession plan, get in touch with our team of experts here.
Four Reasons To Create a Succession Plan Today
Investing the time to plan for the future of your business will keep the trajectory of your business on an upward trend and create long-term benefits like the ones below:
1. Ensure Business Continuity
COVID-19 is a prime example of how important it is to have structures in place that ensure your operation is sustainable, no matter what unexpected circumstances come your way. During the pandemic, countless businesses were forced to close down. While many factors were at play, a large part of it was because businesses hadn’t laid out proper workflows beforehand which caused their systems to fail during a state of emergency.
You never know what could change in the blink of an eye. You don’t want to be caught unprepared when you unexpectedly lose a team member… or when the entire world shuts down. Putting a succession plan in place will allow your business to flourish, continually.
2. Minimize Conflicts and Disruptions
Conflicts and disruptions are a sure way to lead your business to the ground. Decreased productivity and lower satisfaction that come from unclear responsibilities can lead to projects not getting done or not meeting the standard.
By clearly outlining who is going to assume each role, you help avoid conflict when someone retires or moves on from the business. This allows your company to keep operating as it should, instead of being put on the back burner while disputes are managed.
3. Preserve Family Legacy and Values
When you started your business, you had certain values you wanted to uphold. Creating a succession plan allows you to reflect on the roles within your company and make sure that the people primed to step into them are also upholding those values. This will ensure you choose leaders who will continue to incorporate your values and carry on the family legacy.
Once a plan is in place and you know who is going to take over specific jobs, you are also able to take advantage of the time and help prepare each person for their future role.
4. Facilitate Efficient Wealth Transfer
When it comes to wealth transfer, planning ahead is crucial. Not only do you need to know where each asset is going, but you want to pass along knowledge and values so your family can continue to grow their wealth and be successful within the business.
Come work with our skilled team so you can be confident in your plan and the future of your business. To learn more about succession planning and how to go from step one to a final, solid plan, check out our information page.