What is a succession plan?

This is a process of recognizing and developing not only new but potential leaders who can replace old leaders when they happen to quit, retire or die. In an organization, succession planning involves developing internal people with the potential to fill key business leadership positions in the company.

Is owning an organization is an achievement? Yes, it is. But an achievement comes with responsibilities such as striving hard for growth. Well, if you own an organization and you have a growth plan in hand and no succession plan, you are preparing for problems. Why is this so? A growth plan simply shows expectations of an organization’s growth as well as identifying potential needs to support that growth. On the other hand, a succession plan emphasizes the need for employees provision thereby enabling them to grow to advance with the organization.

Benefits of a succession plan.

• Reduced budget. A succession plan ensures candidates are sourced inside the organization. As such, less money is spent on recruiting as well as onboarding and training.
• Improved internal hires. Some study by Gallup shows that most managers are chosen from their performance. A succession one allows an organization to gauge and filter the most performing employees thereby promoting them.
• Increased employee involvement. The succession plan shows how you value people and provide for them. It gives room for recognition and reward of performing employees thereby motivating everyone to be the best.
• Improved performance. Since employees are well prepared within the organization, they all strive hard to be recognized and rewarded. This results in a win-win for both the organization and employees.
  Increased proactive approaches. A succession plan allows human resource professionals to identify problems and find solutions before the problem occurs. This is very key when it comes to avoiding negative and dysfunctional situations.
• Improved preparedness. While coming up with the succession plan, employees are full involved giving them room to ask questions as well as make mistakes before everything gets real.
• Sense of purpose. Everyone would love to work in an organization where they feel included, recognized and valued. The most diverse way of ensuring this is by having a succession plan. This sets a path for profit sharing and further advancement.

Now you know. A succession plan is very important for both an organization and its employees. Don’t only own an organization but grow and advance through succession planning. Make your employees valued for their potential but snot only for their current performance.