Our business needs a succession plan. The strategy has been to recruit good people, promoting from within if possible. With the people in place who could play a significant role in the company’s next generation, we’re ready. Next we need to discuss capabilities and commitments. And get clear about what expectations we have of them. Is there a match? If we mess up, we could be back in the driver’s seat exactly when we’re ready to retire. Thoughts?
Thoughts of the Day: A succession plan ensures your company is prepared for the future. Yes, planning out the next generation can be a challenge. “Now” is almost always the right answer when considering if it’s time to figure out the future. Looking for talent inside the company is smart. Knowing when talent has to come in from outside is crucial. Figuring out any gaps ahead of time gives you options.
A succession plan is a process
Creating a succession plan and looking to the future can be intimidating. Who will run the company when you’re not around? Although unpleasant to think about, we’re all mortal and replaceable. Who wants to admit to either of those? Most owners underestimate the time and effort needed to form a succession solution. They’re busy running the company and don’t make time to work through the details. Some follow the model they have followed — one person in charge — when a management team might do a better job.
Lack of clarity about succession leaves employees farther down the line in the dark as to what might unfold if something were to happen to the current owner(s). If something unexpected happens, you want people who are prepared to step up. You want everyone in the organization to actively support those who do step forward. It’s easier to follow a plan already in place that everyone agreed to when there was the benefit of time to work through details.
It is preferable to be prepared with a succession plan solution than to be caught short. That means taking time to brainstorm and plan, even if those plans eventually get scrapped in favor of new plans. Having options is always better than being faced with a critical decision and no preparation.
Identify key positions within the business
Start by assessing the talent pool inside the company. Ask people what they’re good at, what they want to learn about, and where they see themselves in the future. Expose employees to leadership and opportunities beyond their current roles.
Make it part of everyone’s job to participate in some form of outside education every year. Try job sharing with a peer company to expose your employees to another way of doing things and to bring in people who might look differently at how business gets done. Find out who wants to step up and who is more comfortable taking a backseat role. A succession plan asks facing tough questions.
Make sure to profile the jobs at the top. What are the jobs today? What skills and talents will be required five to 10 years from now as the company continues to grow and the marketplace changes?
It’s worth noting that any organization knows what it knows — and that’s not everything. There are ideas, solutions, suggestions, and options that others have thought about that could be useful to consider. Some of those outside ideas might get rejected and some might be a fit. Ignoring the possibilities that others can bring to the table is just plain dumb.
Build a pool of trained workers ready to fill key roles
Constantly challenge your team to get smarter, faster, and better at what they do. Expose them to things outside the company. Ask employees to take courses, go on sabbatical, spend time working for another company. Try things that help to expand their horizons with information that they could bring back to help your company.
If there are gaps in what the company needs to know — now or in the future — you have options. Hire the talent. Hire teachers to train your employees. Get people to practice through simulations. For example, take time off and let your employees deal with what comes up.
Right now, unless you’re in crisis, your company has time to work through its succession planning needs. Working on successions planning is a priority for business owners. Ensure that the company is prepared for change and smooth transitions. Get ready to step into its future when the old guard steps down.
Looking for a good book? Try “Leaders at All Levels: Deepening Your Talent Pool to Solve the Succession Crisis” by Ram Charan.
