At some point, the key to your company’s future relies on successful succession planning.
No matter how amazing a business may currently be doing, if the succession plan lacks, its chances of thriving will be hurt, too.
So before you move forward with succession, be sure you have a plan in place that will leave you company in the most capable of hands.
4 Steps to Creating a Successful Succession Plan
While you’ll want to consider any factors unique to your business, the following four succession planning steps will make it much easier to pick the best possible leader for your company.
1. Treat Succession Planning as an Actual Priority
Despite how important a successful succession plan is to the future of a company, it’s surprisingly easy to put off. Far too often, it’s treated as little more than a job interview and moving someone into a new office.
Given the role it will play in your company’s outlook, it’s important that you treat succession planning as a high priority. This means scheduling regular time to not just put together a plan, but then execute it. You might even need to pay for consultants or other third parties to help ensure you make the right decision.
2. Focus on the Skillset Required to Lead
While succession planning may involve any number of steps depending on your company, the most important will be identifying the skillset necessary to lead your company forward.
Don’t simply choose the “next in line.” Create a defined list of skills and aptitudes required to earn the role. This should also involve the traits that will be necessary for the challenges of tomorrow, too, not just the ones your company currently faces.
3. Gauge Your Competitors’ Skills
One easy way to execute that last step is by benchmarking the talent of your competitors. If your industry is a small one, you may already know what the leadership looks like for other companies. Otherwise, sites like LinkedIn will make this easy.
Again, you want skills that will take your company forward, so this step shouldn’t be the only thing you consider.
At the same time, if you find your company’s current talent pool is lacking compared to the competition, your succession plan may need to involve an outside hire.
4. Create a Detailed Transition Plan
After going to all the trouble of creating a successful succession plan, it would be wise to invest in a smooth transition plan, as well. Otherwise, even if you’ve picked the best possible candidate, their chances of hitting the ground running are going to be greatly impeded.
Amongst other things, the plan should involve plenty of one-on-one time with the former leadership. This should be an ongoing commitment, so the new leader can ask questions as they continue to learn the role. Ideally, the former leadership will remain on as consultants for some time, too, so they can continue advising the successor.
We Can Help You Create a Successful Succession Plan
If you’d like help creating a successful succession plan or simply preparing your company’s finances to support the transition, contact Mooney Lyons today. You can use our experience to guide the important decisions you have to make at such a pivotal time.