Can your business survive without a Succession Plan?
What risks do you run by not having a succession strategy in place at your organization?
What is Succession Planning?
Succession planning refers to the business strategy companies adopt to handover leadership roles to another employee or employee group. It ensures that businesses continue to operate smoothly and uninterruptedly after key players have left the organization. This includes preparing for a planned separation, e.g., retirement, or, on the other hand, planning for a sudden departure, e.g., for a serious health diagnosis of a key employee, or in the event of loss of life.
Succession planning does not just apply to leadership roles. It can also include staff with specialized knowledge, experience, or roles that are typically difficult to recruit for.
Risks of not having a Succession Plan in place at your Organization.
As an HR Leader or business owner, you know that your organization's success often depends on having key talent in your workforce. We are all aware of what sudden and abrupt changes can mean to an organization. Here are a few major risks associated with not having a succession strategy in place:
- Financial loss
- A drop in stock price when investors lose confidence in the new leadership team
- Key talent leaving the organization may also impact the company's ability to fulfill customer demands
- Loss of knowledge and know-how that is key to operations if not transferred to other staff
- Culture and staff engagement may decline due to the feeling of uncertainty and the power struggles that emerge when there are open key roles
- This may lead to additional staff leaving the company, especially if they feel they are not being recognized for their potential, and / or being considered for leadership roles
- Customer confidence may decline if they do not feel that their needs are being met and they are negatively impacted by issues during the transition
What does the Succession Planning process involve?
Succession planning is a time-consuming and labor-intensive process. Most plans take at least one year to create. The process includes evaluating roles, identifying potential talent, adjusting hiring practices, and much more.
Although this is a lengthy process, it is never too late to start planning. Download the Succession Planning Guide to understand the steps involved in creating a successful succession plan.
Who could benefit from this guide?
- Human Resources professionals
- Business leaders
- Business owners
Whether you have an aging workforce, high turnover, or are facing an abundance of organizational changes, understanding succession planning can benefit your organization.
Download the Guide to Succession Planning
Complete the form below to gain access to our Succession Planning Guide.
Please contact us to set up a meeting if you need help executing a succession plan for your organization. Contact information is listed below.
Masha Ali, CHRL
Principal Human Resources Consultant
Masha Ali is an experienced Human Resources Consultant. She believes that the key to an organization’s success is understanding the strengths of your workforce and ensuring that people are aligned with the right role that allows them to utilize their key skills, experience, and behaviours. Her goal is to help small to medium sized businesses make informed decisions that will ensure continued growth and success.
Culture Up HR Solutions
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