Succession planning is the process of identifying and developing future leaders, senior managers or individuals who can fill business-critical positions. It’s also known as exit planning, with good reason. If you’re a business leader, you need to think about who else can lead when you exit the business due to retirement or other circumstances.
With that in mind, have a look at our Succession Planning Top 10 – a quick run-down of what your organisation stands to gain by putting a strong succession plan in place now:
- You’re prepared. Succession planning means you’ve equipped the business with an action plan that can help support service continuity if and when key people leave.
- Cost avoidance. You’ll spend less time and money on external recruitment if internal employees have been developed and trained to take over when senior managers and other key staff move on. (Of course, it’s important not to only be inward-looking: the succession planning process may reveal that an external hire would be best.)
- Staff motivation. A commitment to developing career paths for internal employees sends a message to staff that they are valuable, helping you to retain top talent.
- Brand enhancement. Succession planning can help gain you a reputation as an employer that invests in its people and provides opportunities and support for advancement, which can help you to recruit top performers.
- Ready for opportunity. What happens when your business sees an opportunity to expand or restructure? This preparation could allow you to say yes to these opportunities.
- Identify weaknesses and strengths. The process of succession planning may highlight internal weaknesses which can be addressed to allow improved operational effectiveness. Unknown strengths may also be identified which could benefit the business.
- Improved communication. Succession planning can strengthen relationships as the process opens greater communication between employees and teams.
- Less resistance to change. Planning for the future is exciting! With clarity of vision and employee engagement, a business can benefit from less resistance to change as the focus is placed on the positives.
- Peace of mind. If you’re a business owner and want to reduce your time and input into the business, succession planning could enable you to do so effectively. (The generally accepted time horizon for succession planning is about 5 years).
- Risk mitigation. Without a succession plan an organisation’s effectiveness and sustainability could be at risk. A business needs a means of ensuring the longevity of its crucial procedures and services beyond the tenancy of the person currently responsible for them.
Would you like some practical insights on developing your succession plan? Join us on Wednesday 3 December, when iMultiply teams up with leading accountancy firm Mazars to host a discussion in Edinburgh on the key succession planning issues: management, ownership and taxes. Along with our guest speaker from Mazars, we’ll be hosting local business owners and leaders to this informative session.
To attend or for more information, please contact Kirsty Mackenzie on 0131 603 7744.
Image: In Line