Succession Planning: The Secret to Long-Term Success

Every company should include succession planning in their business plan. Read on to learn more about succession planning and why it’s important.

The Importance of Succession Planning

  • Ensures Businesses Continue to Run Smoothly If an Executive Leaves: An executive leaving the company could result in major upheaval. Without someone to carry out their duties and make their decisions, the organization could lose days or weeks of productivity. Succession planning ensures there will be someone there to pick up where they left off, so the business doesn’t fall apart.
  • Advancement Opportunities: A succession plan tells workers there are advancement opportunities. It will give them an incentive to do well in their current positions.
  • Easier Recruitment Process: Succession planning allows companies to hire internally so they don’t spend as much time and money recruiting and hiring.
  • Mentorship Opportunities: A succession strategy allows the executive to train their successor. They can pass on company values and develop strong professional relationships with team members.
  • Meets Shareholder Approval: Shareholders will be less likely to sell stocks in the company when a CEO retires if they know the successor has been trained to uphold company values.

How to Develop a Succession Plan

  • Identify Vulnerable Positions: Start by identifying positions that may require a successor if someone steps down.
  • Determine Possible Successors: Consider which team members are best at fulfilling executive roles. Skills and emotional intelligence are important assessment factors. Think of the core competencies that are required.
  • Create a Preparation Plan: Create a plan to prepare the successor for the role. It may include training, mentorship, coaching, networking, and collaboration on certain projects.
  • Consider a Developing Landscape: Succession coaching should do more than get the successor ready for the present. It must get them ready for the future. Consider potential industry changes and ensure the successor has the skills to handle them.
  • Review Your Plan Regularly: Succession is not a one-time event. The plan you make should adapt to various positions at your company. Review it regularly to ensure it meets current standards.

Strategies for Ensuring a Smooth Transition to Leadership

  • Develop Clear Strategy: The succession process will run smoothly when there is a clear plan and strategy in place. The leader must articulate the plan clearly and make the successor feel excited about moving forward in the company.
  • Enforce it with Strong Leadership: Strong leadership will establish trust between peers, team members, and other executives. It will make team members respect the leaders they are succeeding. Colleagues will also be likely to respect a new executive who’s been trained by a strong leader.
  • Promote Open Communication: Clear and transparent communication between the leader and successor is critical. Aspects of change and onboarding should also be communicated to stakeholders, co-workers, colleagues, and other executives. One-on-one calls, small group meetings, site visits, coffee breaks, and a generally open attitude will promote trust and reduce anxiety.
  • Use Strategic Planning: A succession plan should include timelines, milestones, and goals that ensure the successor is ready to take over when the executive leaves.
  • Find The Right Talent: The succession will run more smoothly when you start with the right talent. Hire people that you can see moving up in the company. Think about the roles they may be suited for during the recruiting process.

Stahl Recruiting Will Help You Find the Right Talent for Your Executive Roles

Stahl Recruiting will help you find the most qualified professionals for your executive roles. We consider the needs of your company and find candidates that satisfy your requirements. We will keep your rail industry business moving forward.

This article was originally published by Stahl Recruiting.

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