Top 10 Succession Planning Tips

Having a clearly documented plan of succession in place is an important step toward ensuring the continued longevity and prosperity of both your company and its employees.

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Recently, an executive with the Kansas City Business Journal hosted a roundtable discussion with business leaders from a variety of industries in order to discuss modern succession planning strategies and related issues, which we have distilled, summarized, and/or expanded upon in the following list of succession planning tips:

• Start the Process Early: Succession planning is best done well before it is necessary - ideally 5 to 10 years in advance of major personnel/leadership moves;

• Consider Multiple Succession Plans: Thinking through some of the potential alternative paths in advance - whether roles are passed down internally, externally, or absorbed by committee, for example - can help clarify some of the relative costs and benefits associated with each succession option;

• Constantly Nurture Leadership: In order to have viable internal candidates in the first place for a given leadership position, organizations must always be developing talent from the ground up through a variety of means including mentoring programs and regular check-ins with employees to help identify and achieve goals mutual;

• Assess The Role Holistically: Take stock of all the various, nuanced functions required of the departing leader in the execution of their job, distinguishing between technical skills, professional relationships, and managerial functions;

• Bring-in Trusted Advisors: For those preparing to transition away from their leadership role, while it is certainly important to involve business advisors like tax specialists and accountants to facilitate the process, it is also advisable to loop in both trusted management personnel and friends/family members to ensure the transition is as smooth as possible;

• Transition Gradually: Many of the practical aspects of succession planning like the offloading of responsibilities among various colleagues or successors are best done over time and piecemeal - responsibility doesn’t need to change hands all at once;

• Consider Timing: When and how a company leader departs from their position can have significant ripple effects both inside and outside the company that should be taken into account;

• Consider Culture: Even when successors are capable of technically executing the job well, the culture of the workplace will undoubtedly be reshaped - whether subtly or dramatically - in ways that can have meaningful impacts on both employees and operations and should not be neglected in the succession planning process;

• Communicate Clearly: While some information needs to be closely held among relevant stakeholders and decision-makers early in the succession planning process, the goal should be to make communications about succession plans as transparent as possible as soon as possible when final plans have been formalized, and

• Consider Outside Consultant Help: Very few people have more experience with succession planning than external advisors who specialize in these matters, which can be a very beneficial wealth of experience in which to tap. 

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