During these unprecedented times we have unfortunately seen many businesses, which have been in operation for years, close their doors, impacted in the national attempt to stop the spread of COVID-19. Entrepreneurs are known for their innovation, but despite this, not all were able to keep their businesses operating.
If there is something that we have all learnt from this, it is that we need to be prepared.
You own a successful and thriving business. Your team is led by a charismatic individual who suddenly quits without any notice. This team leader was responsible for important projects with pressing deadlines. His/her sudden departure means that your business could face any, or all of the following risks. Power struggles while staff jockey for position, poor service, a negative emotional culture in the business; employees seeking new opportunities.
How can you prevent the negative consequences of the loss of a key employee?
The answer is planning – succession planning.
Succession planning is a strategy and a process for targeting growth in the depth of knowledge & experience of staff within your company to facilitate seamless replacement of resignations, promotions and retirement of staff members. Another key aspect of succession planning is to develop a successor for the business owner in the event of his/her retirement, death, or to prepare for the sale of the business.
Important Criteria to Consider in Succession Planning
Consider ALL your key staff members not only managers and supervisors. We must also include those employees who the company relies on. Identify possible emergency replacement persons from within the company to fill unexpected vacancies.
Consider planned successors – staff who can be trained and developed to fill a role over time.
Conduct regular performance reviews – they help you to identify staff with potential to develop, staff who need training, potential resignations/dismissals etc. Regular performance reviews also help you, as the business owner, to keep in touch with your employee’s plans and aspirations (Less surprises).
It is costly, both in time and money, to replace a key person from outside the company. It is far better to ‘promote from within’. Internal promotions indicate sound planning, growth and stability of the business, to the existing staff.
When recruiting staff, particularly in a growing company, always look for people with the potential to advance. Set them on a training & development program and outline their possible career path right from the start.
Rotate staff where possible to develop multi-skills, future successors and to enrich employee’s jobs.
Review your succession plan each month.
Len specializes in developing Succession Plans that also improve productivity, as well as increase employee growth and retention.
Contact Len now for an appointment to review your succession and strategic plans.