Tag Archives: Succession Plan

How to develop your succession plan

Succession planning is essential for any business, from small family-owned businesses to large corporates. A succession plan is a strategy for the future of your business, and it involves identifying and developing the future leaders of the company. Planning applies to all levels of the business, keep reading to find out how to develop your succession plan.

Be proactive with your succession plan

Most of the time in a business, you will be unaware that a team member is going to leave the company. There are some circumstances that you will have plenty of notice for, such as retirement. You need to be proactive in your succession planning and consider the impact that an employee leaving will have on your day-to-day operations.

Pinpoint succession candidates and let them know

If you understand each person’s impact, you can pinpoint other team members that could potentially step into these positions. It is important not just to consider the next person in the organisational chart, but also look at other promising employees in other areas.

Make sure that you discuss with each person – you can’t just assume that they would be interested in a more senior role. If they are interested, you need to establish that circumstances may change, and there are no guarantees.

Increase professional development

A business should invest in the professional development of its employees, especially those that have been identified as succession candidates. Provide them with training opportunities and ways to boost their knowledge and experience. You can also connect them with mentors to boost their soft skills, such as communication and empathy.

Have a trial run

You don’t want to wait until it’s too late to check whether a candidate is suitable. A great way to trial is by having the potential succession assume a few responsibilities of a manager who is on holiday. Employees will highly value the experience and opportunity to demonstrate their abilities.

Employee changes within your organisation are inevitable. You can’t predict the future, so you need to establish and develop your succession plan. Contact the team at The Farm Protectors to build your succession plan and pave the way for business continuity.

Include Yourself in Your Business’ Succession Plan

Everyone has to leave their business one day. If you are planning the succession for your business, you need to remember to include yourself! The company needs to prepare for life without you, but you need to prepare yourself for life without the company.

So often, succession plans forget to consider the exit strategy of the business owner. Consideration needs to be made regarding their personal readiness. Without careful planning, many retirees often find life difficult after exiting the business. Some retirees get bored and choose to re-join the workforce, or alternately are forced to re-join because they are unable to support themselves financially long-term.

What are you going to do once you exit the business? While you might think that pursuing a passion, hobby or sport a few times a week sounds great, it won’t sustain you long-term, and you might find yourself without any real purpose.

It can be a great idea to start with a well-earned break. But after that, you need to plan. To feel great and make the most of life after work, you can:

  • Volunteer and help the community – it is incredibly fulfilling to volunteer and help your local community. You might like to support local charities. You could even put your skills and knowledge to work, offering mentoring or tutoring to others.
  • Spending more time with family – many retirees love to spend time with family, especially caring for grandchildren.
  • Working part-time – maintaining part-time work is a great option for those that want or need to continue earning a form of income. We are living longer, so it can be a great option to help your savings last longer. It also enables you to create a routine and a sense of purpose.

You will have to exit our business one day, so make sure you are prepared and include yourself in your business’ succession plan. Talk to the team at The Farm Protectors today to build your succession plan and prepare yourself for life without work.

Why Your Business Should Have A Succession Plan

What would you do if one of the leaders of your company steps down? Succession planning is an ongoing process to ensure the continuity of a business beyond its current management. It is never too soon to start planning. The benefits of succession planning are massive. Here are a few reasons why your business should have a succession plan in place.

Helps the business survive an unforeseen event

You can’t predict the future. At any time, an essential member of your business may become ill or resign, and without a succession plan in place, you will be left scrambling to keep the business running smoothly. You can’t plan for an unforeseen event, but you can have a plan in place with how you will respond if something happens. A succession plan will outline a strategy to fill positions as needed in your company. A succession plan takes the stress out of future change.

Identify the most qualified leaders

Creating a succession plan will allow your business to identify potential leaders ahead of time. By doing so, you can provide these people with training and coaching opportunities if needed to prepare them for the future. The business can hire internally with people well-aligned to the organisation’s goals and values, alleviates the hassle of hiring down the track.

Save the business money

Filling an executive position can be costly, especially those coming from another company as they will expect a substantial compensation package. Simply put, it costs money to lure people away from their current jobs. With a succession plan, you can promote from within and eliminate any unproductivity while a new person learns the ins and outs of the company.

Keep staff motivated

Succession planning sends a very positive message to your team. It shows them that the company is planning for the future and are committed to developing staff. Staff will be more motivated and confident in their work.

Your business needs to have a succession plan in place to prepare for the future. If you have any questions about succession planning or family business, get in contact with the team at The Farm Protectors today.