Succession Planning – the How, When, & Why

All businesses will use at least one form of “Succession Planning” strategy during its lifetime.  This phrase can mean many things to a business owner.  Succession Planning  is subject to scale and scope of a business,  and like any strategy, the most effective ones are developed over time and employ specially designed resources.  Transitions are part of a businesses DNA, and unfortunately some are forced on a business before they are planned for.

One key tool to ensure business continuity and continued success for your business is a well designed Succession Plan.

Succession Planning quite simply is planning for the future and continued success of the business.  It insures the continuity of services of the business entity itself and likely includes planning with in each of the 4 Pillars we commonly talk about in our blogs                                                     (Products, People, Operations, & Marketing) . 

If a business losses ability to generate revenue due to change in ownership, loss of key people or suppliers or lack of consistency in their products, clearly it is not as successful as it could be.  Proactive management considers multiple scenarios that may effect revenue generation.  Common risks a Succession Plan identifies & addresses may be a sudden loss of a key leader, preparation for sale or retirement, or even rapid business growth.

  • In this article we provide some very brief points on questions around the most common transitions Business owners may face.  Like many of our “Conversations Series” articles this is designed only as an overview and in bullet point fashion.  Future blogs will address these points more thoroughly or please contact me if you would like me to expand on specific points.                 LearnMore-Blue-Primary-16


Why undertake Succession Planning-

A good “Stress Test” for small business

Business growth has determined need to document processes and business knowledge

Improper hiring practices have created a gap in culture or brand execution


Succession Planning is..

  1.  A Leadership Development Strategy
  2.  A Risk Management Best Practice
  3.  A Sustainability Best Practice
  4.  Crucial for Knowledge Transfer

Types of Succession Planning

  •  Strategic Leader Development (Next Generation)
  •  Emergency or Interim Management (Sudden loss)
  •  Departure Defined (Sale, Retirement)


When is right to plan?

  • Business/Company is financially sustainable
  • Strategic Plan/Priorities are in place
  • Leadership and Management is involved and engaged
  • Performance appraisal plan is in place (pending scale)

When is the Wrong time to plan?

  • During a sudden loss (death/medical emergency, etc)
  • Ad-hoc leadership patterns are apparent
  • When economically challenged
  • Unstable labor base (high attrition, low engagement)

As mentioned the reasons why an organization may address this depends on there specific situation and needs.  We will outline the more common areas people have asked us for help.  The most proactive thinkers look for Leadership succession with in an organization.  Others are more Risk Management savvy and want to protect against a Leadership “Emergency”.  Organizations that find themselves in an Emergency situation often look for an  interim management (Outsourced) solution so here we point out keys to consider.  Lastly many are looking for a departure plan, “how to insure the ship will run when I retire”.  Here we give tips on what to considered and plan for.  If you are uncertain what your business needs are or where to even start, please reach out and C.S.Simons Consulting will be happy to provide some free direction to get you started.

Steps for Leadership succession
  1.  Identify future goals and challenges (strategic plan)
  2. Create model of needs, competencies, skills, experience
  3.  Identify potential successors and assess individual and organizational gaps to              determine developmental needs
  4.  Create individual and organizational development plans
  5.  Measure frequently and revisit models and plans as environment and priorities       shift
Emergency Succession Planning
  1. Identify critical executive functions and responsibilities
  2. Name and train a backup for each function
  3. Ensure that key relationships and contacts are documented
  4. Create and update a binder or digital file that includes key documents such as strategic /operational plans, annual and monthly calendars of organizational activities, etc.
  5. Create a board approved policy and procedure for Emergency Succession
Interim Management option considerations
  1.   Proprietary IP concerns/Legal concerns
  2.   Affordability
  3.  Knowledge transfer/Time to proficiency- Transition production curves
  4.  Minimum contracted time?  (3 months common)
  5.  Support structure with in business/company
Defined Departure issues
  1.   What are our vulnerabilities with departure of our Executive/Owner/Partner ?
  2.   Unique skills of this person … Can they be replaced?
  3.  The “Do-ability” of their job?/ Compensation needed for replacement?
  4.   Management Team strength?  Is an internal successor ready now?
  5.   Should we Consider a Merger/ Acquisition or Restructuring?


How to create a Succession Plan

  1.   Identify critical positions
  2.   Identify competencies
  3.   Identify Succession Management Strategies
  4.   Document and implement plan
  5.   Evaluate effectiveness

Some of these steps may seem overly simplistic (which is why they may be overlooked).   A Succession plan may be an insurance plan that is never needed (unplanned departure) or for a certain event like retirement that everyone works to achieve.  Planning to insure there is little interruption in the continuity of business functions, reputation and revenue will positively impact your current customer base, your employee population, and quite possibly your ability to sleep at night!


Carpe diem!

0 thoughts on “Succession Planning – the How, When, & Why

  1. Amazing content. Appreciate it.
    acheter viagra et cialis cialis online cialis 5 mg time to work [url=]buy cialis online[/url]
    medco prior authorization form for cialis
    viagra cialis kamagra cena
    resultados uso cialis
    costo cialis in italia
    cialis interazioni farmaci
    comparar viagra cialis levitra

  2. Amazing content, Thanks!
    how does cialis affect vision cialis generic cena cialis apteka [url=]cialis without a doctor prescription[/url]
    viagra cialis levitra espaГ±a
    cost of daily dose cialis
    ingredienti del cialis
    comparacion entre viagra levitra y cialis
    que efectos produce el cialis
    cialis sulle donne

  3. Appreciate it! A good amount of content.
    cialis generika ohne zollprobleme kaufen cialis without a doctor prescription cialis selkäkipu [url=]cheap cialis[/url]
    efectos secundarios viagra cialis levitra
    cialis with orange juice
    cialis precio oficial espaГ±a
    cialis 100mg wiki
    cialis effects on testosterone
    buy generic cialis fast shipping

  4. Incredible all kinds of helpful facts!
    generique cialis 20 mg cialis 20mg does cialis cause sweating [url=]cialis online[/url]
    cuba gooding cialis commercial
    who is the male actor in the cialis commercial
    cialis x losartana
    what is the recommended dosage for cialis
    cialis e outros
    can i take half of a cialis pill

  5. Whoa quite a lot of wonderful info.
    where to buy cialis in chennai generic cialis cialis nasД±l satД±n alД±nД±r [url=]cheap cialis[/url]
    wie lange cialis nehmen
    viagra cialis generika kaufen
    cialis and drinking
    generique cialis dangereux
    cialis e psicofarmaci
    taking arginine with cialis

  6. Whoa all kinds of terrific info.
    cialis mit rezept bestellen cialis online how safe is cialis online [url=]cialis generic[/url]
    red cialis viagra fiyat
    donde puedo encontrar cialis generico
    is cialis a daily pill
    cialis kaufen seriös
    is it ok to take expired cialis
    cialis generico en mexico df

  7. You actually expressed it really well.
    cialis fa perdere i capelli generic cialis generic india cialis [url=]cialis without a doctor prescription[/url]
    achat cialis veritable
    comprare cialis in austria
    cuanto es la dosis recomendada de cialis
    cialis and muscle mass
    cialis side effects muscle aches
    para sirve tableta cialis

  8. You made your stand extremely effectively!!
    laboratorio fabricante do cialis cheap cialis does cialis affect the liver [url=]cialis generic[/url]
    how long does it take daily cialis to work
    buy cialis in lahore
    canada drugs online cialis
    cheapest cialis and viagra
    correct way to take cialis
    cialis online offer

  9. Many thanks. Fantastic stuff.
    red cialis yorumlarД± cialis online what does cialis cost at costco [url=]cialis without a doctor prescription[/url]
    cialis o q Г©
    il cialis cura la disfunzione erettile
    cialis 60 tablet
    directions for cialis use
    unterschiede viagra cialis levitra
    cialis theme song download

  10. Excellent content. Cheers!
    how long does it take 5mg cialis to work buy cialis online cialis side effects nose bleeds [url=]cheap cialis[/url]
    why isn’t cialis covered by insurance
    kur pirkt cialis
    tratamiento prolongado cialis
    cialis yarım içilir mi
    cialis running
    tadalafil cialis erfahrungen

  11. You definitely made the point.
    cialis en andorra sin receta cialis without a doctor prescription effetti collaterali del cialis generico [url=]generic cialis[/url]
    prendere viagra e cialis insieme
    proscar and cialis interaction
    what is the usual dose of cialis
    hoe moet je cialis gebruiken
    cialis 20 mg bula
    cost for cialis daily

  12. Thank you! An abundance of facts!
    cialis commercial with black couple cialis online age to use cialis [url=]buy cialis online[/url]
    gazzetta ufficiale cialis
    viagra vs cialis vs levitra prices
    amankah obat cialis
    cost of cialis at sam’s club
    bob cialis commercial
    does cialis have to be taken on an empty stomach

  13. Thanks a lot, An abundance of write ups!
    cialis works better next day buy cialis online cialis cena cz [url=]cialis without a doctor prescription[/url]
    cialis etkisi ne zaman baЕџlar
    cialis generico indiano
    cialis and body weight
    prescriptions for cialis
    cialis commercial jingle
    cialis spedizione ups

  14. Seriously all kinds of good material.
    what pill is better viagra or cialis cialis online can you take cialis with avodart [url=]buy cialis online[/url]
    can i use cialis with high blood pressure
    cialis 4 pastillas precio
    o que o cialis faz
    cialis ed bph
    cialis how to use 20 mg
    cialis penile enlargement

Leave a Reply

Your email address will not be published. Required fields are marked *