Friday, July 1, 2016

Why You Need a Succession Plan

By: David Schuchman
Princeton Technology Advisors, LLC
      Innovative Solutions for Your Growing Business

An organization uses succession planning to ensure that it recruits superior employees, develops their knowledge, skills, and abilities, and prepares them for advancement. You need to develop a succession plan to ensure that your employees are constantly developed to fill each needed role as the organization evolves.
As your organization expands, loses key employees and provides promotional opportunities, your succession plan guarantees that you have employees on hand ready and waiting to fill new roles. Through your succession planning process, you will retain superior employees because they appreciate the time, attention, and development that you are investing in them. To effectively do succession planning in your organization, you must identify the organization’s long term goals. In addition, successful succession planning builds bench strength to protect your organization against the challenges associated with these 3 occurrences:

Organizational Growth & Reorganization
Organizational growth has the potential to provide a company with a variety of benefits, including greater efficiencies from economies of scale, increased marketplace visibility, a greater ability to withstand market fluctuations, greater profits, and increased prestige for employees. While it spurs job creation, organizational growth also has challenges. A company may outgrow the skills or abilities of its leaders and employees. All those involved may quickly become stressed out trying to keep up with the demands of expansion. Without proper succession planning, the expansion may become ineffective and stall.

Loss of a Key Employee
Every corporation has key leaders or employees that make substantial contributions to the operation, profitability, and success of the business. Any individual who has critical intellectual information, sales relationships, product knowledge, and/or industry contacts that may adversely affect profits in the event of their absence, may be considered key. A succession plan will ensure that an organization can tolerate the short term and permanent loss of a key employee.

Easily Replace a Poor Performer
A poorly performing employee can negatively affect team and organizational performance. Sometimes, they can undermine their coworkers' efforts through their incompetence or uncivil behavior. When attempts to correct their behavior or improve their performance fails, it may become necessary to terminate that employee. A robust succession plan will ensure that an organization will have cultivated other employees to fill the void caused by a staff termination. In addition, it will allow you to plan ahead to replace that employee with a new recruit in a timely fashion.

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