Planning for potential internal challenges is as necessary as identifying external ones. Your employees and the company decision-makers are the backbones of your business, and though contemplating the loss of one of them isn't pleasant, it's essential for the health of your business.
Making sure your company has a comprehensive succession plan in place is a necessary step when creating a sustainable business.
What is succession planning?
Succession planning is a way to help provide your business with stability and continuation when facing the challenges the future might hold. Unexpected changes to the core structure of a company can have a large effect on its ability to perform and survive if no thought's been given to the possibility.
Whether its a key leader within the business resigning, or leaving abruptly due to health or other unexpected reasons, having a succession plan in place makes it possible to smooth over the transition and limit the fallout caused by the changeover.
Due to the individuality of each business, it's important to tailor the succession plan to the unique needs of your company.
How does succession planning apply to different levels of your business?
When thinking about succession planning it's easy to consider it in terms of your own exit plan, or that of other high-level business partners. However, a true succession plan recognises that the impact reaches individuals at every level within the company.
Identifying these key leadership positions and creating a roadmap for how you will fill the gap if the current person leaves is essential.
On a personal level, a succession plan creates an exit strategy for you should you ever choose to leave the business, whether selling it on or deciding to retire. Knowing you've created a legacy that will continue to grow once you've left it is something to be proud of, and thinking of how the company will transfer to new hands is a part of building that.
The unrecognised benefits of a succession plan
Having a succession plan allows you to make wiser and more informed decisions around employee development and advancement.
Having the security of knowing your company is prepared should a key member of staff leave is only one of the benefits of having a properly implemented succession plan. Just like how the process applies to all levels of the business, the positives gained from it exist on many layers as well.
Having a succession plan allows you to make wiser and more informed decisions around employee development and advancement. It also strengthens the structure of your company, as key roles are clearly acknowledged, and you can develop better support and knowledge transfer processes around the positions.
For employees, a succession plan can create a roadmap for advancement for them, especially as your business grows. While it's security for you, knowing you have the next generation ready to step into an empty role, it also provides an opportunity and challenge for them. This helps with talent retention and creating a solid culture and structure within your business as the employees in key roles are more likely to know the intricacies of your organisation.
If you'd like to know more about building a succession plan talk to WMC Accounting today. We're here to help you achieve your goals, and prepare your business for the future.