“When Should I Begin Succession Planning?”

Business owners often ask, “When should I begin succession planning?” Our answer is simple: it’s better to have a plan before you need one. Here are a few reasons why you should begin succession planning today:

Leadership Retires

Everyone eventually retires, and it may be awhile before leadership takes their leave, but it is still so important to have a plan for succession. Identifying top talent within the organization now could give you anywhere from 5-15 years to train these individuals to fill leadership vacancies in the future.

Successors will have ample time to shadow executives, acquire new skills/hone existing skills, and pursue additional training (if necessary). Succession planning isn’t just about securing the structure of the organization but ensuring that future leaders are prepared to fill their new roles.

Unforeseen Events

Retirement is not the only factor that affects the structure of an organization. Unfortunately, disaster arises without warning. Without a succession plan, unexpected illness or death within the organization can greatly impact operations.

Therefore, it’s crucial to discuss competencies and identify top talent early. You should also be actively training top talent for succession, as unexpected vacancies are unpredictable. Future leaders should be prepared to step into their new roles at a moment’s notice.

Higher Employee Engagement and Retention

When filling leadership roles, you have two options: identifying/developing a successor or hiring outside the organization. Many opt to hire outside the organization to save time and money. However, succession planning yields higher employee engagement and retention.

When employees see that management is willing to invest in them, they are more loyal to the organization. When they feel valued for their skills and contributions, they are more passionate about what they do. Loyal, passionate employees make for great successors!

Succession planning is an important part of transitioning existing leaders and preparing the next generation of leaders. Secure the future of your company by identifying strong successors. Need guidance on how to prepare for the future? Allow the professionals at Floro Business Strategies to assist you in restructuring and identifying successors. Visit our website for more information or contact us today!