When business owners in Pennsylvania think of planning for their future, they may focus on developing competitive strategies, growing their customer base or expanding their product line. However, planning for the sustainability of their operations is equally as important.
Succession planning enables company leaders to articulate organizational goals and identify pathways to achieve those objectives and maintain core values. A smooth transition in leadership will facilitate this process and proper succession planning addresses this aspect as well.
An effective strategy
Business leaders can use a number of strategies during succession planning. However, according to the National Institutes of Health, Office of Management, good strategies for succession should address key components including the following:
- Identification of integral roles and responsibilities
- Descriptions of eligibility requirements for integral roles
- Development of a talent pipeline
- Nomination processes for transitioning leadership
- Facilitation of training and educational resources
- Analysis of succession plans to preserve their purpose over time
An ongoing process
It is never too early for business leaders to begin succession planning. In fact, regardless of the size of a company, organizational leaders can generate a number of benefits from having an idea of how they will sustain their success. Some of these benefits include the ability to minimize risks, the chance to retain valuable employees and the opportunity to capitalize on resources.
According to the U.S. Small Business Administration, succession planning is an ongoing process that corporate leaders will need to revisit frequently. Market conditions, economic circumstances, company growth and new leadership may all impact a succession plan. Leaders who take proactive measures to modify and update their plans as needed can preserve the intent of the original plan and have the confidence that the future of their company rests in good hands.