There comes a time that every business leader must ask themselves a question: "Before leaving my business, how do I go about planning for a successor?" With factors such as generational wealth, future goals, and executive strategies all tied up in your leadership role, you need to know how to prepare for succession. But what is succession planning? And why is it important to know how to prepare for succession? Let's go over the basics.
Understanding Succession Planning
Importance of Succession Planning
How Does Succession Planning Work?
- Determine the most crucial roles in the company. Consider the positions playing a vital part in the business's future success. Who holds the most responsibility in the day-to-day? In a world where folks may be wearing multiple hats, it can be helpful to consider the role and not specific individuals to start.
- Develop a description of these roles and create a list of expectations for the position. What does the job fully entail? What is everything required of the person in the role?
- Identify the candidates who could best succeed in the role (or roles) based on the description and expectations you determined. Who could seamlessly transition into the position? Who might need a helping hand to get where they need to be to succeed?
- Create a plan to help those candidates get the training and development they need to remain strong candidates. Can a mentor or two take them under their wing? Are there additional responsibilities they can take on to prove their worth?
- Re-examine this succession plan annually and repeat steps 1–4 as necessary. What has changed since the last time the plan was examined? What remains accurate?