When you own a business, it’s inevitable to put thought into the timeline and future of the business. After all, operating a company is a big responsibility, and most business owners want to make sure that everything is taken care. Succession planning is a process that enables businesses to continue operating smoothly after their founders leave or if they are unable to fulfil their duties for some reason. With this kind of plan in place, the company can rest assured that there are people who are ready and able to take up the mantle of leadership. This blog post briefly outlines why succession planning is important for your business and what you should consider in order to have peace of mind knowing your company will be in good hands after you’re gone or can no longer operate it.
Why Succession Planning is Important for Your Business
Owning a business is a huge responsibility and a long-term commitment. Although you might have an idea of how long you want to keep your company going, you never know what will happen in the future. You could get hit by a car or become ill and be unable to work, or you could decide that you no longer want to be an owner. In any of these cases, you need to have succession plans in place so that your business can continue to operate smoothly with minimal disruption. Your employees might be able to make do with a reduced workload for a while when you’re not able to be in the office, but it’s inconvenient for everyone involved. Depending on the nature of your business, this disruption could be costly, and it could damage your reputation. If you have no succession plan, employees might also feel insecure about their future with your company, which could have a negative impact on productivity and staff retention.
Hiring a Successor when Succession Planning
If you own a small business, you might not have a board of directors to help you find a successor for your position. In that case, you might have to do some headhunting to find someone who is qualified to take over. The good news is, there are plenty of guides and resources available to help you with this task. They might suggest that you try different tactics, such as finding candidates that already work at your company, interviewing people who are currently working elsewhere, or reviewing applications you receive via job boards. No matter which approach you take, you want to make sure that you find someone who is a good fit for your company and has the right skill set and experience to take over when you leave or can no longer work. You should consider factors such as their knowledge of your industry, their management experience, and their level of understanding regarding your products or services. If you have an established business, you might want to work with a headhunting firm to help you find candidates.
A Handover Strategy for Employees
When you find your successor, that person won’t necessarily be able to take over right away. This means you’re going to need a handover strategy. Depending on the type of business you own, you might want to provide a formal handover process, such as writing a handover plan that details how your successor should go about doing their job. This could include your customers’ needs, your company’s financial situation, and administrative procedures. You might also want to consider sharing documents that are relevant to your business, such as your financial forecasts, marketing strategies, and sales figures. Depending on your industry, don’t forget to share sensitive documents, such as contracts, legal documents, and personnel files. Discuss aspects of your job with your successor both formally and informally. This could include topics such as the financial situation of your company, ideal customers/clients, and information about internal teams.
Assessing Your Company’s Culture and Values
Succession planning isn’t just about finding someone who can do the job. It is about finding someone who fits into your company’s culture and shares your values. Make sure that your successor has the right skill set and experience to do the job. However, ensure that person is a good fit for your company and its employees. Do this by assessing your company’s culture and values, finding people who align with them. You could do this by executing a cultural assessment. Or you could interview prospective successors about their strengths and weaknesses and ask them about their personal values. Talk to your employees about what kinds of people they want to work with. After you’ve assessed the culture and values of your company, you can find employees who align with them. If you’re hiring from within, you can select people who have demonstrated that they share your values and culture. If you’re hiring from outside the company, use cultural assessments to identify potential successor traits.
Assessing the Employees, You Have for Succession Planning
As you’re hiring successors, it’s important to assess the employees you already have. Determine which ones are the best fit for the job. You might want to talk to your employees about which leadership roles they aspire to. You could assign them a leadership assessment to help you determine their strengths. Use these assessments to help you identify employees who are ready to move up to new positions. We would suggest looking for someone who has a similar skillset or experience.
Finding Employees to Recruit
When you’re hiring successors, you might be able to find the best candidates from among your current employees. It’s a good idea to scour job boards and reach out to external candidates as well. Successors in a business may cause you to miss out on some good fit candidates for your company. You’ll minimise the risk of hiring people who are less committed. Use job boards to find potential successors and candidates for other key positions in your company. The asset to use is social media and networking sites like LinkedIn to find suitable candidates.
Owning a business is a big responsibility. It’s crucial that you have a plan in place. You will want to know what to do for when you can’t work or no longer want to own it. Succession planning is a process. It enables companies to continue operating smoothly after their owners leave or can no longer work. With this kind of plan in place, companies can be rest assured that there are people who are able to take up the mantle of leadership at any given time.
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