There are a great number of annual or more regular processes that company’s go through, for which they are typically well prepared, such as financial reporting and strategic planning, but when it comes to succession planning, many are not so well prepared.

1. The Importance Of
Succession Planning And
How To Manage The Risks

2. There are a great number of annual or more regular processes that company’s go
through, for which they are typically well prepared, such as financial reporting
and strategic planning, but when it comes to succession planning, many are not
so well prepared.

3. Why is succession planning so important?
There are benefits to both the individual and the organization when succession
planning is carried out, not least that the business can continue to function
without a break in proceedings, and is able to maintain its client base and
reputation. But, those companies that do start implementing a plan, often falter
when it comes down to the nitty gritty, such as making sure the employee
identified is ready and willing to advance when the time comes.

4. What are the risks involved with succession planning?
What an employee who’sready for succession looks like varies from company to
company, but generally speaking, they should possess the right level of functional
experience and have the necessary skills for leading people. Once an individual
has been identified (or number of individuals), should they then be told of their
position in terms of succession planning, or not?
Some organizations opt to be transparent and tell their employees, but there are
some very definite risks associated with doing so. Here are some possible
outcomes when a successor is informed of your plan, and how you can resolve
them:

5. ● The individual identified simply doesn’t want to become a
successor
There can be multiple reasons for an employee not wanting to fulfil the role of
successor, but provided you know in advance that they’re not interested, it gives
you time to identify a more suitable successor.

6. ● Others who weren’t identified feel they shouldn’t have been left
out
Succession planning often has the goal of trying to retain the top talent within an
organization, but if there are other talented and ambitious employees who didn’t
make the cut for any reason, you could risk losing them. To help reduce the risk
of offending or upsetting anyone, it’s worth spending time with all employees to
discuss the development of their careers within the organization, and how you
can help them feel fulfilled and valued.

7. ● The timing is off
It may be that there are some top talent in the organization who are ready to
further their development and career before a succession spot can be found for
them, in which case it will be important to actively listen to them and try to find
ways to keep them engaged and enthusiastic in their role.

8. ● An identified employee is no longer required
Let’s imagine you’ve already lined up a successor for a leadership role; they’ve
been informed and are already making their way through the development plan
you’ve put together for them. Then, when the time comes for them to fulfil their
new role, the company makes the decision (and for whatever reason) that they
are no longer needed in the role.Unfortunately, this can have a negative impact
on the relationship between the chosen successor and the leader or leadership
team, with trust being somewhat diminished. In the event of this happening, the
organization must take steps to be transparent with the individual, and inform
them of every detail that has influenced their decision, while sharing with them
any opportunities for growth that may still exist.

9. Succession planning is an extremely important aspect of any
business, and as such, shouldn’t be neglected or rushed. And
whilethere are inherent risks associated with succession planning
and transparency, it’s probable that in most instances, the pros
outweigh the cons, provided the risks are mitigated and managed
appropriately.

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