- May 9, 2019
- Posted by: Sandeep Singh
- Category: Business plans, Succession Planning
According to research, over 70% of small, and primarily family-owned businesses in Australia are likely to experience a change in ownership in the next five years. Change, however, is an integral part of running a company and through effective succession planning, you can ensure that you have a potential successor for every role in your company.
Succession planning focuses on identifying and growing talent to fill key business positions in the future. Actively pursuing it can ensure that your company’s mission remains on track even when a key employee leaves or the owner chooses to retire.
The simplest way to do this is by having the senior leadership continuously identify and put forward the talented, motivated employees with great potential within the company. This formalised system helps build commitment within the unit and develops the employee so that when the need arises, they will be ready to take over.
Succession planning is critical when it comes to change in ownership, too; by having a well-developed strategy, you can ensure that your clients will continue to feel confident with the new business owner and remain loyal customers.
Apart from ensuring all business operations run smoothly even when change occurs, succession planning offers a myriad of other advantages to employers and employees alike. When employees know what future position awaits them, they can not only be more prepared for it but also tend to experience increased self-esteem and enhanced efficacy.
For employers, on the other hand, succession planning ensures that the loss of a key employee won’t undermine the management’s ability to pursue important objectives. Proactive and effective succession planning protects the organisation and leaves it well prepared for any future contingencies.