Succession planning is the term used in business for developing a strategy for transference of leadership. In family businesses, this could mean determining which member or members of the next generation will succeed as owners and managers when the company founder or current owner retires or passes away. A succession plan is not limited to family – many business owners plan for their retirement by transferring ownership to employees or outside management.

1. B u s i n e s s :
DefiningSuccessionPlanning
b y D r E d g a r P a l t z e r

2. 2
Defining Succession Planning
Succession planning is the term used in business for deve-
loping a strategy for transference of leadership.
In family businesses, this could mean determining which
member or members of the next generation will succeed
as owners and managers when the company founder or
current owner retires or passes away.
A succession plan is not limited to family – many business
owners plan for their retirement by transferring ownership
to employees or outside management.
BUSINESS:
The primary goal
of a succession
plan is to maintain
operations following
retirement through
selecting new
leaders.

3. 3
Continued
Operations
The primary goal of a succes-
sion plan is to maintain ope-
rations following retirement
through selecting new leaders.
The aim of a succession stra-
tegy is to ensure the company
continues to operate smoothly
even after the current owner
steps down. Choosing the right
successor is only part of the
strategy.
Training and
Development
One key aspect of a succes-
sion plan is the training and
development of family mem-
bers or employees to ready
them for their new leadership
responsibilities in advance.
This helps the potential new
leaders to develop the skills
and business acumen requi-
red to guide the company
through its next stage of life.
One key aspect of a
succession plan is the
training and development
of family members or
employees to ready them
for their new leadership
responsibilities in
advance.

4. You can learn more about
how succession planning
forms part of the longevity of
a family business by visiting
the blog of Dr Edgar Paltzer.