Structure is key for most successful companies. Owners, directors, management and employees all play their own unique roles in hitting targets and objectives. Another fundamental aspect of a well-run company is stability. Staff, stakeholders and consumers need to have an idea of what will happen in different scenarios. For example, what would happen if an owner or executive suddenly passed away?
This is where business succession plans come in. A succession plan implements an efficient strategy for replacing key players in a company’s operation should the unexpected occur. Outlined below are a few key reasons why your company should have a succession plan.
It helps you to think about the future and prepare for the unexpected
As stated, stability is very important in business. While you can’t predict every future event, being prepared for a sudden change in leadership is something you can control. Delays in designating a new company leader could cost your business time and money, and ultimately put it at risk.
It can help you avoid unnecessary costs and motivate your employees
While you can certainly opt to bring in new leaders from outside, there are a lot of benefits in promoting from within, such as avoiding the expense of scouting for talent and enticing them away from already lucrative positions.
A succession plan allows you to highlight individuals who you think have the potential to run the company one day. You can provide all the training and instructions for them so that they are ready whenever that day comes. This can also give your employees a reason to stay motivated and committed to the company, knowing that there is a future there.
It can improve cohesion within the company and spark needed conversations
Shared ethics, goals and objectives are also pivotal to the success of a business. Succession planning can enhance communication between the different departments in your business. This means that you’re all reading from the same page in terms of the future of the company.
There are many risks associated with running a company, but succession planning needn’t be one of them. The future of your company is in your hands. At Brick Business, we help businesses who are looking to implement a succession plan, feel free to contact us for a consultation.