The ongoing challenge for every business, large, medium and small is creating a sustainable model. To increase the company’s sustainable culture, entrepreneurs and corporate leaders develop a succession plan. This plan evaluates all staff and identifies their leadership and management potential.
Upper management then sets in motion training initiatives, including cross-training and mentoring programs that prepare the employees for the next step in the company ladder. A strong succession plan is stimulating for the business and its employees.
There are many benefits to succession planning.
Morale Booster – A succession plan lifts morale and reduces turnover as employees see a plan in place for the future.
Encourages Growth – Succession planning is a road map for growth and for external collaborations. The manpower to expand into new markets and new regions is trained and ready to step up to the plate.
Softens Key Man Departures – For businesses that are reliant upon key men or women, there can be great stress when that person accepts another job, or is disabled or takes a leave of absence. With a succession plan in place, the prepared employee fills the spot. The business progresses with nary a flinch.
Continuity – The succession plan provides customers, suppliers, lenders, investors and employees with the security they all want to see. Whether they ask or not, all these parties wonder about the company’s future.
Definition – A succession plan begins with the company’s vision and defines it clearly. The plan is the roadmap to the future and the company’s mission statement should permeate every pore of the plan. This is the company culture. For businesses expecting to compete on a broader scale, this is the definition and depth needed to move to the next level.
Transparency – The succession plan is an open plan that ensures transparency to all interested parties. The company culture is known to all workers and all external entities. This enables the employees to contribute to internal and external projects.
Security – Too many small and medium businesses owners take care of employees first and themselves second. The succession plan gives the owner security that if he or she is unavailable there are trained personnel to fill those shoes. This is especially gratifying when the owner begins to play a lesser role in the day-to-day operations.
To build an effective succession plans take time and concentration. These plans are not accomplished overnight. It take time to create the plan and time to implement it but as it represents the security of the business, employees are happy to participate.