If you’re a business owner, when you hear the term “succession planning”, you may immediately think of leadership roles – who is going to replace me as CEO when I retire? This is certainly one important consideration, especially if you’re nearing retirement age. But if you’ve been consistently engaging in succession planning within your business for some time now, your question should be answered with a modicum of ease.
See, succession planning can be deployed through all levels of your business to ensure that you are continuously surfacing top talent, retaining star employees by providing effective pathways to promotion, and focusing your development efforts on the right people. Here’s how it works.
Like most things in life, it starts with a successful plan. As a business owner, you need to sit down (potentially with your HR department, if your organization is on the larger side), and identify which roles in your business are crucial to operations. Which roles need to be consistently filled, and with top talent sitting in the role? Once you’ve identified these key roles, outline the capabilities and skillsets that need to sit within the role, and what additional skillsets might be a “nice to have”.
Now that you have an idea of where your organizations priority roles sit, and what sort of talent profile should fill the role, you can begin to assess the individuals currently filling the role – and potential replacements within the organization, should someone be promoted or choose to leave the company. Managers should be having ongoing career planning discussions with all staff on a regular basis, and this is a way to invest in talent through development and training, readying individuals to move up into important roles – retaining top talent as a byproduct of this planning.
When you consistently assess the changing needs of your business, alongside careful development of employees, you’ll begin to consistently see talent surfacing – whether those are Subject Matter Experts, or management candidates who have the potential to move into high level leadership roles in your company. If you stick with this system, when you start to think about retirement, you’ll likely find yourself with some strong internal candidates who may be willing and able to take over leadership of the company you created.
If you are considering retirement or stepping back from a leadership role in your company, you may wish to consider engaging a consultant to assist in the planning process. Will you be retaining ownership, or looking for a buy-out? If you retain ownership, will you transfer all leadership to a new CEO, or will you be establishing a board to oversee the operations? There are a multitude of ways in which you can wisely and carefully step back from your own company, and starting to succession plan for all your employees now is the best place to start.
How can Halkin Business Partners help?
Halkin Business Partners appreciates that each client is unique, with their own financial circumstances, individual needs and goals. Understanding our clients in this way allows us to tailor appropriate wealth creation strategies and services, including succession planning for organizations of all sizes.
Our specialists can assist in making sure you are best structured to be ready for parting from the business. We can also guide you through the planning and management phases to execute your desired succession plan.
Speak to our specialists today to see how Halkin Business Partners can help you with your succession planning.