It is the law of nature that no one is irreplaceable. The same principle is applied in companies as well where the leaders and the managers will leave or retire after a certain time and their replacements will then take the charge. How succession planning works for an organization depends on its structure. It cannot be the same for any two organizations, therefore, before devising a plan, one must be fully aware of everything about the particular organization. The basic principles around which this plan revolves are more or less the same and are listed below:
Originates from Organization’s Strategic Plan:
Many businesses don’t have or don’t believe in this process. The more successful companies have embraced this type of planning and have developed a plan and continue to refine and adapt the plan for any changes in the business. It has a great impact on Succession Planning because businesses that develop a plan are not usually caught off guard or if they are they can react quickly.
Think Long Term:
Don’t just think in terms of one or two years. A Strategic Plan is a 5 to 10-year plan. Succession planning is a commitment and is not a small job. It takes forward thinking and input from all levels of a company. The process is never-ending, always measured and adjusted accordingly.
Get to Know the Right Talent:
You must be aware of all the possible candidates internally or externally who qualify for the positions. It is so important to make sure you begin this process prior to retirement or losing a key member of the team. This allows you to make sure the person is trained properly if internal and consistently recruited if external.
Develop Generations of Successors:
Do not just think about one single successor, plan for the future. Come up with a number of successors who will be ready to take the position at any time if the predecessor leaves for any reason.
As a firm, Suaky & Associates believe answering the question “How much is my company worth?” is part of our responsibility and the foundation of a great working relationship – even if that is further in the future. Because of this we, unlike most firms, offer free insurance valuations for those who qualify.
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John Biasiello is President at Sukay & Associates, Inc. and has more than 25 years of professional experience in the insurance industry.
He has held several senior positions with the leading insurance broker Alexander and Alexander, Inc. In his role as Vice President of Finance and Administration, he was responsible for the entire regional accounting function of this international firm.