Succession planning is smart business planning. It allows you to proactively develop people, rather than simply name them as replacements. Succession planning is about making sure your business can continue to grow and move forward.
The approach should be not to think about when you are ready to leave but when the next generation is ready to lead.
One of the things we often miss in succession planning is that it should be gradual and thoughtful, with lots of sharing of information and knowledge and perspective so that it’s almost a non-event when it happens.
It should start as early as possible and most should begin as soon as you can assess and accurately calibrate the performance of the employees and family members in terms of their skills and career growth potential.
In the roadmap below three key areas are identified when undertaking succession planning:
1. The process of planning succession
2. The 4 basic options for the business going forward
3. The advisors that will lead you there
Contributed by the Family Business Office Regulator, Dr. Nadine Lia