Succession – is there a plan?

2024 is nearly upon us, and one of the issues that many companies discuss at the beginning of a New Year relates to ‘Succession’.

Succession not only concerns the senior leadership team of a business, but also relates to every other position in an organisation. By training people within the organisation, benefits can be created by being able to fill vacancies caused by retirement, illness, resignations, by a person who has worked for the company and therefore understands the systems, the processes and the culture. This is ‘Succession Planning’.

In the Business Plan, it’s a good idea to ensure that a section of the plan relates to ‘Succession Planning’.

In this instance, succession can relate to the Chief Executive, Leadership Team, Directors and Board of Advice Members.

Companies will benefit by having instigated ongoing team training and mentoring in a wide range of business issues, including business operations, management training, team training, corporate governance, predictive accounting (budgets – cash flow forecasts – projected balance sheets), costing systems, technology, communications, public speaking.

Some companies have successfully instigated processes for effective succession including the following:

Conducting a strategic SWOT Analysis – where are we now? What would happen if?

Developing a mission statement and corporate objectives analysing the long-term goals of the business to answer the question – where do we want to be?

To enable the mission statement and corporate objectives to be achieved – what succession strategies does the company need to instigate? Will these strategies contribute to a continuation of people with the ‘corporate knowledge’ and ability to guide the company in the future?

Maintaining ‘corporate knowledge’ in an organisation is a key reason for companies to have an effective succession strategy.

If you would like to discuss the implementation of succession strategies in your company or organisation, contact Towers Business Development on 1800 232 088 or email .