Successful Succession Planning
Every year, I would strongly recommend that you dive deeply into your workforce and employment data to evaluate any potential succession planning results while actively supporting progress and alignment of your strategic workforce goals. During this process, the big objective is to complete detailed workforce planning.
The goals of this process can be achieved by answering four basic questions: Where are you going? What will you need to get there? Who do you have in your company now? What are the identified talent gaps?
As part of any succession planning process, it is important that you connect your exit plan with the succession plan. After all, one supports the other.
Care must be taken to ensure the new incumbents are commercially competent by the time they take on the ownership function of the business. During the creation of the succession plan you must ensure that sufficient time has been given to the new incumbents to allow for them to undertake sufficient training and development in areas that have been identified as requiring attention.
Within such a plan, you must also identify the non-negotiable items that the new incumbents do not have authority to change. The reason for this is to protect the business from unnecessary change, without de-motivating the new owners.
A discussion with the new owners will follow, to highlight the non-negotiable areas and agree any changes that are agreeable. Such changes may also assist in the continued professional development of the new owners.
You will then collectively create the succession plan, which in effect is the business strategy which will contain the remaining year(s) of the current owner, incorporating the plans of the new owners, whilst protecting the business with the agreed non-negotiable points.