Succession planning is a process for identifying and developing internal people with the potential to fill key business leadership positions in the business. Taken narrowly, "replacement planning" for key roles is the heart of succession planning. Succession planning is not a new phenomenon. Companies have been wrestling with ways to identify, develop, and retain their talent for decades.
Succession planning is a process whereby an organization ensures that employees are recruited and developed to fill each key role within the company. Through your succession planning process, you recruit superior employees, develop their knowledge, skills, and abilities, and prepare them for advancement or promotion into ever more challenging roles. Actively pursuing succession planning ensures that employees are constantly developed to fill each needed role. As your organization expands, loses key employees, provides promotional opportunities, and increases sales, your succession planning guarantees that you have employees on hand ready and waiting to fill new roles.
In family owned businesses this can be a case of training and grooming the next generation in the family to take over and obtaining external funding to help finance the handover and retirement of the older generation. It may also involve recruiting senior staff to fill skills gaps and support the next generation.
In other cases it can involve looking for a member or members of staff who could carry out a Management Buy Out and assisting them to find finance to buy out the current owners of the business and to carry on the business.
For more information please contact Iain Sim or Gill Groom.