Action plan
- Throughout the process, control the flow of information on the business’s plan. Work out beforehand how much information to make public knowledge, and what is to be restricted to members of the succession pool.
- Decide what you want to achieve and what you need to help you achieve it. You should put together a comprehensive training programme, including bonding opportunities for your potential successors.
- Sit down with your senior staff to identify the jobs or job groups you need to cover. Discuss your employees’ strengths and decide which of them have the qualities you need, then invite them to join your succession pool.
- If succession planning is a new concept for your company, call in the experts. There is a host of business consultants and accountants specialising in succession planning who can advise you. It will be money well spent, and will show your stakeholders that you are serious.
Planning for success
Protecting your business means having a succession plan in place should the worst happen, explains Tara CraigThey say that grocery shopping should never be done on an empty stomach. Similarly, looking for someone to fill a senior role shouldn’t wait until the incumbent has resigned. This makes it all the more perplexing that, according to a recent Insurance Age survey, 40 per cent of brokers do not have a succession plan in place.
What is succession planning and why is it so important? In its most basic form, succession planning is the identification of successors for key posts. But companies have begun to use it for much more. By having a succession pool, posts can be filled faster – and with good internal candidates who are ready to hit the ground running. While you’re busy identifying your company’s stars, you will notice the skills and knowledge gaps – you’ll be performing a skills audit almost without knowing it.
Having a succession pool means that you can actively develop its members. Rather than hauling them out of near obscurity to fill a senior role, they will have been prepared for it over a number of years. Your new senior executive will be confident, well-trained, and steeped in the culture of your business. And you will know that they are up to the job, rather than the company having to risk all on an unknown external candidate.
Succession planning is more than just a good idea – it’s absolutely essential if you think about what could go wrong without it. Imagine if your chief executive died unexpectedly. Without a succession pool, there’s a good chance that you’ll take the easy option, promoting his or her second in command to top spot. A world-class deputy may be just that – perfect to follow someone’s lead, but not cut out to run the whole company. Or you may recruit a good external replacement. How long will it take him to find his feet? With a succession pool, all this could be avoided.