Succession planning key to future business success

Succession planning is a critical part of ensuring the future success of any business. Why leave it to chance? Investing time and effort focusing on your medium to long term plans, and those of your Senior Management Team, has the potential to pay dividends in the future.

Do you know what the future holds?

Do you understand the personal aspirations of your key senior employees? Whilst conversations regarding individual’s plans for the future may be challenging to approach, a clear understanding of the future aspirations of each member of your Senior Management Team is crucial to ensuring that there is a competent leadership team in place to ensure that your business continues to prosper in the future.

Succession Planning – Why Bother?

A comprehensive approach to Succession Planning is important to a number of key business stakeholders. Having a clear Succession Plan matters to your employees as it demonstrates that the company is pro-actively planning for the future and it also highlights potential opportunities for career advancement for those considering their long term plans. Clients are interested in Succession Planning as it provides them with a clear understanding of how they will interact with your company in the future – you’ve worked hard to build the client base you now have and, one way or another, you will one day exit your business. Your clients want and deserve to understand what your plan for that eventuality is and how they will be impacted. Investors will also be keen to understand your company’s approach to Succession Planning as they will view continuity of Senior Management as key to ensuring the business’ continued success and, therefore, protecting their investment.

Who are the future leaders of your business?

Are their potential successors for the current Senior Management Team within the business? If so, they may require training and development to be able to successfully fulfil a leadership role in the future. Having clear Personal Development Plans in place for employees you have identified as having management potential is of paramount importance.

Broaching the subject of Succession Planning is often left too late and, as a result, businesses face challenging timelines to replace key senior employees. Time is of the essence – the more pro-active an approach you take to Succession Planning, the more time you have to manage transitions within your Senior Leadership Team without unnecessary negative impacts on your business.

Our team at AAB has extensive Management Consultancy and Corporate Finance expertise which can assist clients with Succession Planning. For more information on how AAB can assist your business or to arrange a free initial consultation please contact us.