Succession Planning: Securing Your Organization’s Future

Some changes can make or break an organization, and an expertly planned and well-executed succession plan can ensure an organization’s continued future success in the face of uncertainty. Succession planning is a strategy for an organization to prepare for the future. It is typically used in discussions of leadership transition when an owner or executive retires or leaves an organization. However, succession planning can be applied to any key position at any level in an organization as it helps identify, clarify and target present and future goals of an organization. As such, it is best to think of succession planning as an ongoing contingency plan and talent management program, which requires regular review and updates, rather than a one-time event. Organizations of every size, from a small family business to large corporations, can benefit from a personalized succession plan by KerberRose.  Read on to learn more about succession planning and its wide-ranging benefits. 

How Succession Planning Can Help

Generally, succession planning entails identifying and recruiting employees to fill key roles within an organization—ideally well ahead of when a person is planning to transition to allow appropriate time to develop the successor. The overarching goal is to increase the availability of well-prepared and competent employees to take on key roles. While this is at the heart of every succession plan, a business advisor skilled in succession planning can also take an objective look at your organization, help to identify key goals for the future, and assist in crafting an individualized succession plan which fits present and future organizational needs. Beyond securing a clear transition of responsibility, a succession plan can align an organization’s mission with future-focused business operations or practices, value/growth generation and career development. While every organization can benefit from this process, some examples of organizations which are in more immediate need of a succession plan include those where:

  • The CEO and/or other senior leaders are within five years of retirement
  • There is consideration to gift or sell the business to a family member
  • There is a good group of “next-level” leaders who need further leadership development
  • The organization is growing quickly, and leaders need expedited development to keep up with the growth
  • There is a gap in the number of Generation X leaders to help with succession between Baby Boomers and Millennials

Additional Benefits

In addition to securing the company’s future leadership and strategic goals, succession planning provides several other benefits to an organization. Such benefits include:

  • Minimizing Recruitment Expenses: Organizations prepared to fill roles with internal replacements can save on external recruiting costs. Rather than spending time to recruit, organizations can focus on investing in employee growth and development. Additionally, having an internal employee work alongside an outgoing leader can preserve valuable knowledge which may otherwise be lost.
  • Career Development: When looking to promote employees from within an organization, succession planning can help identify unique abilities and talents of internal employees. It can also identify gaps and create training to improve those areas. Internal replacements have a wealth of knowledge about the organization and showing existing employees your organization is invested in internal career progression engenders loyalty and can improve job performance.
  • Uncovering and Addressing Competency Gaps: When looking at current employees to fill future needs, an organization may be able to uncover deficiencies in current skill sets. As such, this process can uncover disparities between existing employee competencies and those needed for organizational success. Addressing this can strengthen organizational operations in both the present and future.

If you believe your organization is in need of a succession plan, or if you’re a leader who desires coaching for yourself and your employees, take the first step to ensure your organization’s sustainability by contacting a KerberRose Trusted Advisor.