Succession planning enables you to maintain some control over your business even if you reach a point of incapacitation. Because building a business requires sacrifice, you will want to do everything in your power to protect your hard work.
Identifying potential leaders for your organization and establishing strategies for leadership growth and development will require consistent effort. Contrary to what some believe, succession planning is not a one-time process.
Build confident leaders
Organizational leaders make a significant impact on the company they lead. A part of succession planning requires you to implement processes for employee development and training. According to the National Institutes of Health, Office of Human Resources, not having the right people lined up to take over your company in an emergency can have detrimental effects including the following:
- Loss of resources to train candidates that lack knowledge and skill
- Disruption of critical processes throughout the organization
- Misuse or loss of sensitive information unique to your company’s operations
Filling vacancies quickly and without a clear process also puts your company at risk of hiring the wrong people. This mistake could compromise core parts of your organization including its culture, its relationships with stakeholders, and its reputation and credibility.
Protect company assets
Your company has a unique way of advertising, introducing products and strategizing with investors. Organizational assets include intellectual property, employees, culture and financial holdings among other things. A well-written and updated succession plan may protect your company from costly threats including miscommunication and fraud.
Even after you have organized core aspects of your plan, periodically review your plan to verify that everything remains in working order. Leadership changes, policy changes and company growth are all reasons you may need to modify your plan.