Every challenge teaches us a valuable lesson. One of the lessons we can learn from this pandemic, is understanding the importance of working on the potential issues in your business. This is termed as “Succession Planning”, which helps us navigate through an unexpected course of events. In addition, this also helps secure the future of the company and all those who depend on it for their living. The below three tips will provide you guidance on succession planning, to help you gauge your state of affairs for a successful transition.
It is unfortunate that the term succession planning, is often related to the death or end of the company or its owner. As a result, it hinders the process of initiating the scope of arrangement. Some of the reasons for not engaging in the planning process includes, not being ready to retire or exit the business. Alternatively, feeling too good about the growth of the business or one’s health could also be a reason stated to avoid succession planning. The worst of all, denial, that nothing bad can happen to us.
The truth is succession planning is not about the end of the business, but rather its transition or continuity even under difficult times. Being in perfect health, not close to retirement age, having a prosperous business can all be futile when faced with an uncertain environment. However, some companies have still persisted successfully, though many have ended their business journey. No matter where you are, you can always start the succession planning today.
Find a loyal successor who will understand the goals of the company. Remember that you are not replacing yourself in doing so. Rather temporarily substituting the successor to do your mundane tasks. This allows you to focus on crucial and new developments for the company. In other words, you can trust the successor to run the operations of the business successfully while you understand and navigate through the challenging times. For example, reopening guidelines, safety procedures, new norms.
Invite the potential successor to engage in active decision making roles. You are not forgoing your right to decide or control. But merely ensuring that the potential successor understands the working and reasoning in judgement. This also boosts the confidence and builds trust with the potential successor.
Showing your books and figures can make you feel vulnerable. But this step is important to help them understand how their actions will impact the numbers. This extra information can go a long way in aligning them inline with your vision and financial goals.
To sum it all, succession planning helps you identify your hidden obstacles. As a result, it helps you protect your present and the future of your business. To be ready for the most unprepared challenge with the right tools and resources can help the business navigate even the roughest times.
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