Why having a successful succession plan in place is the only way to ensure your company won't crumble when key staff resigns
70% of executive appointments made externally don't succeed. The reality is, without the right talent at the right time, your company could crumble. Read on to discover how having a succession plan will ensure your company's success continues no matter who holds key management, technical, operational and specialist positions.
Regardless of your company size, you need a succession plan.
If you don't start succession planning, 'your company is at an even greater risk of losing scarce leadership talent and skills,' warns the Practical Guide to Human Resources Management.
But a succession plan that's properly implemented and properly managed by someone on an executive management can prevent all this.
Succession planning will benefit your company in three ways
You have a clear picture of the competencies your organisation needs. Because you clarify your company's mission, vision and strategic objectives, your management is able to identify what key competencies are needed in your future leadership team. Recognising what talent your company needs is the basis of a useful succession plan.
Knowledge is retained. With a succession plan company knowledge is transferred and kept within the company. This is a key performance area for all management. 'Leaders identify the knowledge base and develop strategies that protect this knowledge within the company,' says the Loose Leaf. For example, a succession plan must ensure process mapping, quality control systems and operations manuals that detail the flow of your daily operations from A to Z are developed.
You recruit the right people. Succession planning starts with recruiting employees of the right calibre who have potential. Develop your recruitment policies and procedures with the focus of appointing candidates that are suitable for succession planning programmes. For example, 'leadership, adaptability and flexibility are competencies essential in prospective succession planning candidates not only to initiate the change, but to facilitate it,' says the Loose Leaf.
There you have it! Implement a succession plan today to ensure your company's success continues by retaining the necessary leadership and skills within your organisation.