Why Is It Important To Have A Succession Plan In Place? – WalkWater Talent Advisors

Establishing a business takes lots of effort, time, and experience; but growing it further takes a lot more than that. You need intense strategic planning and determination to maintain and nurture your business, which is not everyone’s cup of tea.

Many businesses want to just look at their present, and are reluctant to consider their long-term future. In fact, as per a study, it has been found that only 20% of Indian businesses have a succession plan in place!

What is a succession plan?

A succession plan is an exit strategy that is put into effect to identify individuals for future leadership positions, when a current senior executive plans to leave the company. This ensures a seamless transition, wherein the business can continue to run smoothly even after the company’s most important person(s) resign. Succession planning involves cross-training employees so as to develop skills, company knowledge, and a holistic understanding of the company.

How does succession planning work?

Succession planning evaluates every senior executive’s skills, and identifies potential replacements within the company. The potential employees are trained in a way that they are prepared to take over the position(s), in case such a situation arises in the future. However, this is not a one-time event; a succession plan should be consistently re-evaluated and potentially updated every year, or as the changes require. In addition, there could be a requirement of an emergency succession plan, in the case where an important senior executive needs to be replaced unexpectedly and immediately.

Factors that need to be considered

Although there are amazing benefits that a succession plan can bring, there are a few factors that need to be considered in order to make it successful.

•        It is important to identify candidates who share the same norms and values, so they can easily be embedded into the company culture.
•         A track record of success is essential to convince that the candidates have the knowledge and experience to do well in the sector.
•         Candidates who enjoy learning and growing into a role are ultimately the ones who should be identified, because the succession plan can take years to be accomplished.

Why doesn’t every company implement a succession plan?

While it is crucial that every company implements a succession plan, it isn’t the case. As mentioned above, only 20% of businesses in India have such a plan in place. Why the rest of the businesses fail to do so is because senior executives fail to envisage that one day they will be gone, or may not like the thought of handling the power over to someone else. Another very common excuse seen is the time investment. Because it can take years to put a succession plan into effect, it gives companies a clear excuse that they don’t have the time.

It’s absolutely clear that having a succession plan in place can help a company reap the best benefits, and those who fail to implement such a plan have to face the consequences when a senior executive has to vacate their position. However, it isn’t a 100% assurance that a succession plan will always succeed. That’s because any flaws in the process or administration may result in failure. But that doesn’t mean you shouldn’t implement such a plan. You should certainly employ a succession plan in your organization, but in addition, you should always have the best executives earch firms in India partnered with, so that you always have the finest candidates waiting to be hired whenever you want a senior level position occupied.