Succession planning is not just a nice-to-have; it’s a must-have for any business that wants to survive and thrive in the long run. Succession planning is the process of finding and training future leaders who can take over key roles when the current ones leave or retire. It’s a way of ensuring continuity, stability, and growth for your organisation.

• But how do you do succession planning effectively?
• What are the benefits and challenges of succession planning?
• And what are some best practices and examples of successful succession planning? 

In this article, we will answer these questions and more. We will explain what succession planning is, why it’s important, how it works, and how you can implement it in your own business. Whether you are a small business owner or a corporate executive, this article will help you prepare for the future and secure your legacy.

Myth 1: Succession planning doesn’t have to be a top priority if no one is leaving the company soon.

One of the most common misconceptions about succession planning is that it’s only important when a key leader is about to retire. This myth says that succession planning is an after-the-fact process that only happens when people leave their jobs. But this is a short-sighted and risky way to do things that can leave a company unprepared for changes or opportunities that come up out of the blue.

Succession planning should be a proactive and strategic process that looks ahead to see what key roles will be needed in the future and where there might be gaps. By finding and training potential successors early on, a company can make sure that its business will continue, stay stable, and grow. Succession planning can also help a company deal with unplanned events like key leaders leaving, being fired, getting sick, or dying. Also, succession planning can create a talent pipeline of future leaders who are engaged and committed to the company’s vision and goals.

Myth #2: Succession planning is only an issue for large companies.

Another myth about succession planning is that it is only an issue for big companies. This myth assumes that small or medium-sized businesses do not have key roles that are hard to replace or do not face leadership challenges or transitions. But this is a false and dangerous assumption that can hurt small businesses’ chances of staying in business and doing well.

Succession planning is equally important for small and medium-sized businesses as it is for large corporations. In fact, smaller businesses may have more at stake when it comes to succession planning because they often rely on a few individuals who have unique skills, knowledge, or relationships that are vital for the business. Losing these people without a backup plan can cause a lot of trouble, like a drop in productivity, unhappy customers, or a competitive disadvantage. Also, smaller businesses may not have as many ways or resources to find or train new leaders quickly or well. Small businesses need to plan for the next leader if they want to stay in business and grow in the long run.

Whether you are a large corporation or a small business, succession planning and strategy are top priorities. In some ways, if you are a smaller operator, succession is even more important because you have less money and fewer connections. Just consider what is on the line if things go wrong. If you are a small business, you are risking everything if things turn out badly. No one is coming to the rescue.

“From Interns to CEOs:  Succession Planning is Crucial for Every Employee”

Myth #3: There only needs to be a succession plan for C-level team members.

A third myth about succession planning is that there needs to be one plan for all C-level team members. This myth says that only high-level executive jobs are important to the business and need to be planned for. But this is a limited and incomplete way to think about succession planning, and it can cause you to miss out on other key roles that have a big effect on the business.

So many times, while I was working with SMEs, I heard the following expressions:

“No one is irreplaceable,” the next one; “Business is bigger than any individual.” and “We don’t need succession planning because we have a small team.” However, these beliefs can be detrimental to the long-term success of the business and can lead to unexpected disruptions if a key employee leaves or is unable to work. Business is bigger than any individual.”

I am not saying life will stop if anyone leaves the business, but I am just emphasising and suggesting that it won’t be that easy to replace know-how and expertise “just in time” and at the exact point when they are needed. You need to prepare for all possibilities. You know that the best case vs. worst case scenarios… Something may go wrong, and that may cause some drama in the business, and your future in the business may not be bright.

Succession planning should cover all key roles at all levels of the organisation that have unique skills, knowledge, or responsibilities that are hard to replace or replicate. Managers, experts, specialists, or high-potential employees who contribute to the business’s performance and strategy may fill these roles. By having a succession plan for these roles, a company can ensure that it has a talent pipeline of future leaders who can take over these roles when needed. Succession planning can also help a company keep and grow its best employees by giving them career opportunities and ways to move up in the company.

Myth #4: Succession planning should be handled on a case-by-case basis.

A fourth myth about succession planning is that it should be handled on a case-by-case basis. This myth says that succession planning is something that only happens when a position opens up. But this is a slow and risky way to do things that can lead to bad decisions, delays, or other problems.

Succession planning should be done in a planned and proactive manner well before a position opens up. By having a clear and consistent succession planning process, a company can make sure it always has a pool of qualified candidates ready to fill key roles. A systematic process for succession planning can also help a company avoid bias, conflicts of interest, or favouritism in selecting successors. Moreover, a systematic process for succession planning can help a company align its talent management with its strategic goals and objectives.

My take on this is that you need to demonstrate a long-term commitment by selecting appropriate “star quality” employees that may lift the business’s performance and complement current skillsets and management gaps. People have certainty and faith in what you offer when you communicate (through your actions) what your long-term intention is.

In summary, transparency and structure will make succession planning and initiatives easier to implement.

Myth #5: Good talent is easy to spot, develop, or acquire.

A fifth myth about succession planning is that good talent is easy to spot, develop, or acquire. This myth says that succession planning is a simple and easy process that doesn’t take much time or money. However, this is a false and complacent assumption that can undermine the quality and effectiveness of succession planning.

Succession planning requires a thorough and detailed process to find, evaluate, and train people who could take over key roles. It involves using tools and methods that are based on data to measure candidates’ skills, potential, and readiness to take over. It also includes giving candidates feedback, coaching, mentoring, and training to help them get the skills and experience they need for their future jobs. Also, to find and keep good employees in a competitive market, succession planning needs to be strategic and proactive. It means creating a culture of learning and growth that encourages employees to be engaged and loyal. It also involves offering competitive compensation and benefits that reward performance and potential.

In today’s competitive environment when it comes to the employment market and talent acquisition, if you don’t fight and do whatever it takes to bring superstars to your business, you will fall behind. Not everybody is in it for the sake of money; there must be something more like purpose, vision, and long-term development options.

Great people build great businesses, and I would like you to consider how you would feel if your “star employee” ended up working for your main competitor. What would that mean to your chances, to your competitive position, to your goals, to your vision, and to your future?

Think about that in the context of spotting and acquiring great talent.

Myth #6 Succession planning is a confidential and exclusive process that involves a few people.

Another myth about succession planning is that it is a confidential and exclusive process that only involves a few people. This myth says that succession planning is a private matter that shouldn’t be shared or talked about with other people. But this is an isolating and limiting way of doing things that can make succession planning less trustworthy and open.

Succession planning should be a process that includes and involves many different people, groups, and ideas. It means explaining to employees and other important people what succession planning is for and how it works. It also means asking for feedback and ideas from different people, such as peers, subordinates, customers, or experts from outside the company. By involving more people in succession planning, a company can increase buy-in and support for the process and the outcomes. It can also make the talent pool and the way decisions are made more diverse and better.

My best educated guess around succession

Succession planning is a vital process for any business that wants to survive and thrive in the long run. It is not a reactive or ad hoc process that only happens when a key leader is about to retire or a job opens up. It’s not a simple or straightforward process where the CEO just has to choose a successor or find good talent. It is not a confidential or exclusive process that only involves a few people or roles.

Succession planning is a proactive and strategic process that tries to figure out what key roles will be needed in the future and where there might be gaps.

It is a thorough process that uses tools and methods that are based on data to find, evaluate, and train possible successors. It is a collaborative and inclusive process that involves multiple stakeholders and perspectives. By busting the myths about succession planning and using the best methods, businesses can make sure that their operations stay stable and grow. Succession planning is especially important for businesses in the expansion and growth stages, as they need to have a talent pipeline of future leaders who can drive innovation, performance, and competitiveness in a dynamic market.