The success of a company is oftentimes contingent upon having a strong leader. Regardless of their background, small business owners and CEOs of large companies devote their time and effort into building the value of their organization. Ensuring the success of the company is a high-priority goal that motivates every leader. Despite this, many owners and companies overlook perhaps one of the most important elements of planning for long-term success—succession planning.
In simple terms, succession planning is the identification and development of potential successors for key positions in an organization. Succession planning can have a tremendous impact on an organization’s longevity. Succession planning aims to ensure that a company will be able to carry out missions and meet company goals in the future—even after current key members are no longer with the organization.
For a family-owned company, having a succession plan can also ensure that the business remains in the family. Additionally, having a succession plan can demonstrate to stakeholders, investors and employees that the organization is committed to the company even during transitional periods.
Despite the importance of having a succession plan, many companies are not properly prepared for what happens when it is time to plan their succession. Whether your organization is a small business with 10 employees or a large company with over 250 employees, we offer a free toolkit that will help you gain a better understanding of what succession planning is, why it is important and how to create a detailed succession plan.
While business succession planning can be a lot of work, it should be treated as a normal part of the business life cycle—one that can make or break your business.