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The main components of a succession plan

On Behalf of | Nov 5, 2024 | Business Planning

Sudden changes in leadership can prove devastating for an organization. Business owners and executives may need to develop a succession plan to smooth that kind of transition whenever it occurs. Some people create plans of their own volition because they worry about protecting the company that they have helped run.

Others have to establish a succession plan due to the requirements of the company that recently hired them. In either scenario, there are certain standard components that can play an important role in an effective succession plan. The goal of a succession plan is to allow for a smooth transition if someone in a key position within the organization dies or becomes incapacitated and cannot do their job. The following are the most important components of a succession plan that can actually help to protect a company’s interests during such transitions.

Input from the current workers

The person who fills the position currently has important insight into what their job requires. They can identify people who may be capable of filling their position. Their contribution to the succession plan may be a written document discussing aspects of their job that may not be part of the training provided by the company.

Details about relationships, projects that are currently in progress and even information about specialized knowledge that the position requires can all be important elements of an effective succession plan. Professionals typically need to create a written plan to help the company identify reasonable candidates to take over their positions and train the right candidate.

Proactive skill acquisition

Succession plans also require working with candidates to move up within the company. Any workers who might theoretically step into an executive or leadership role probably require training ahead of time.

Job shadowing, occasional educational courses and a host of other training opportunities can help ensure that those the company may consider to fill a role are capable of stepping up when the time comes. Discussing the possibility of future advancement opportunities can also help incentivize better job performance from ambitious workers who could eventually move into better rules within the organization.

Some organizations view succession planning as an opportunity to promote diversity and inclusion within the company. Training a variety of workers for vacant positions can help a company become more inclusive in the long run.

Proper succession planning helps to ensure that there are people able to take over a position at a company when a professional currently serves in that role becomes incapable of continuing their work. Integrating succession planning into employment contracts and company training practices can help ensure the future viability of an organization.