Why Is Succession Planning Important (Benefits And Reasons)

Why is succession planning important and what are it benefits?. And why do you need to put measures in place for it in your business, organization or company. There’s a very wise saying that explains the benefits of succession planning – If you fail to plan, you plan to fail. Yes, so simple, if you don’t plan for a successor in your company or business, it may not get a second chance in this competitive word in case the key player passes away. How can you do it? If you want to see how you can set successful plans for your business, pay close attention.

The one proves that shows, why most businesses will collapse in the next 10 years, are due to a lack of succession planning. Planning is one thing you can never beat in this competitive world. Have you ever wondered why some small businesses make more money than other big businesses? Or wondered why businesses begin to collapse when the key player leaves? It’s because most companies neglect the importance of succession planning. But…

You don’t have to do the same. If you want your business to get a second chance and maximize your profit, then stick with me for a moment. I will show you – what is succession planning and why is it important. I will also give you 6 “Powerful” reasons why you need a succession plan for your business and how to do it. So pay close attention.

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What Is Succession Planning and Why Is It Important?

 What is succession planning and why is it important? I know you have been waiting for an answer to these two questions for a very long time. But pay close attention as I explain it to you one at a time especially why is succession planning important.

What is succession planning?

Is the process of planning towards transition of a leadership position in a specific company or organization. This includes recruiting new people or training internal employees to successfully replace them to top positions in case you leave or any of a business top member goes on retirement or decide to leave. That is the main factors but if you think you can do without it then answer this –  Can your business survive in case the key player leaves when you have no one to replace?

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In most cases HR department (Human Resource Department) handle succession planning as they search for internal employees or external once that may be right for the position. But CEOs often have the task of recruiting and grooming potential employees for replacement.

Why is Succession Planning Important?

Succession planning is very important because without it a business may not get a chance to survive in case something unexpected happen. Imagine XYZ company operates with one executive member called Y. Here if Y get sick or decide to leave, the company will be required to pause it operation for a while to search for the right external candidates to replace Y. But if measures should have been putting in place earlier on already, an internal train candidates could have replace Y for the business to operate without a pause.

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So succession planning is really a must do thing for every company or organization. To keep your company from operating on it all business days without a break, you must train internal ones on how to handle superior positions. So that if anything happen so and so can fill the top position. Why is succession planning important for your business or organization?

2 Importance of succession planning your business needs to know

Importance of succession planning every business, company or organization needs to know to help increase it productivity level.

1. Helps the company or business to plan for the long term

Most companies prefer long term planning over short term planning. This is because making regular changes in a high growing business won’t always be effective and if care is not taken regular changes can drive customers away. However, planning long term gives every business the opportunity to operate on it perfect strategy for a long time. Businesses that neglect the need for succession planning cannot go by long term planning strategy.

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If they do, they may have to give a break at a time of a barrier to search for an external successor. Because you can’t say your business will operate effectively for 5 years without any of your top employees getting sick or going on a leave.  That will be impossible but it is really possible for business that plan for long term. Why because they know why succession planning is important. They put the right measures in place for employees with the right skills and positions to replace top members in case of any crises or pandemic.

Getting to the next guide on why is succession planning important…

2. Cut the cost of recruitment

In 2015 Forbes report shows that the average cost involving in recruiting new employees for mid-lever companies is $999,000 and the minimum time taken for these companies to get the right employee is two weeks. So imagine the cost and the time required. Is it not wise for all companies to make use of succession planning? Having a train sub employee to replace a top one will not involve any cost and may not take a day to do the handover.

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This does not mean you should not look for external employees when you need it most, no. What I mean here is to train sub-employees to handle top positions in case something weird happen unexpectedly.

Objectives of succession planning is to ensure that business operate effectively without a break by delegating top task to sub-candidates. This isn’t the aim of only private businesses or organization but family businesses as a whole.

Importance of succession planning in family business – this type of business is really hard to manage because most businesses of this type requires it employees to be family members only. So how will the business survive if a train family member to handle the top task of the business is in school or not on good health? This is a whole issue I will provide answer to later, but for now,  pay close attention as I deep in further why is succession planning important.

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Disadvantages OR Challenges of succession planning

Disadvantages or challenges of succession planning in business or organization. Aside the various benefits of succession planning, there are some challenges too.

1. Threats

Human beings are the most active thinkers of all species. Getting a sub-employee or a successor to know that in case something happen to this or that top manager he or she will be replace is a real threats to the life of the top manager. Because here is a case if the successor wants that top position so badly, he or she can do something bad to the top manager or the one currently in charge of that position. He will do whatever it takes to get the person out of the business or organizations so that he or she can be replace.

We deal with human beings with different characters. Some people characters can be seen the moment you set your eyes on them. But for others you can never know what is in their mind. So because we cannot trust employees 100% managers of every company needs to be careful of who needs to be train as a successor for top positions.  Because if care is not taken such person may bring a lot of harm to the business.

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2. It increase envies among employees

Among all employees of a business they know very well who is more productive and who isn’t. No need to address anyone on this issue because everybody knows. And they know it very well who will replace that top position someday. This does bring some sort of quarrel in the minds of employee because they all want to be promoted to the top level.

Know why is succession planning important for your business and put measures in place for it. Don’t let these above challenges overwhelmed you.

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Conclusion

That brings us to the conclusion of why is succession planning important. I have said a lot that could contribute to the development of a business or organization growth or profit maximization. Your take away is to implement whatever you have captured here into your business or organization to put measures in place by making use of succession planning.  You can also add your suggestions below on – why is senior-level support essential to the succession planning process?.
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Now that you have seen how to make use of succession planning, there is one thing that contributes to the success of your life. So pay close attention to the content in why “Success Is Never Owned, It’s Rented, and The Rent is Due Every Day.”

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