Photo courtesy of Horasis
A powerful strategic planning team is an asset to any business. Although an owner may be comfortable making the major decisions, having a planning team at your disposal exponentially increases the available pool of fresh ideas. There’s no substitute for an objective team who can explore diverse strategic opinions, then focus the ideas into a focussed plan aimed at a specific business goal.
There are many companies we come across that consider succession planning being applicable only to family-run businesses or large corporations. However, succession planning should be an important part of any company’s Strategic Plan.
Without a Strategic Plan, a company is without a vision for its future; without a Succession Plan within the Strategic Plan, a company cannot ensure that it will continue to have qualified employees who can help the company forge ahead. As such, succession planning should be a part of any strategic planning process and vice versa.
Identifying Your Key Players
Developing an effective succession plan means identifying key positions within the company as these positions are typically the most difficult to replace within the company. Once key positions are identified, employees can be groomed to fill these positions. Any gaps between each individual’s skill and the required qualifications can be narrowed gradually.
Make the Most of Your Up-and-Coming
Part of the planning for any form of business succession includes creating a viable game plan for educating individual employees. Projects above the normal scope of duties for an employee or even formal training, such as a certification program, will provide learning opportunities for the successors. Alternatively, job shadowing is an excellent way to increase the competency of a given employee without the expense of seminars or certifications.
Finalize Your Goals and Look to the Future
A Strategic Plan must emphasize the company’s mission and goals above everything else. A well-organized plan will include strategies to minimize tax burdens on the next generation of business owners. With this plan, up-to-date employee manuals, estate planning documents and management priorities should be available. Obtaining a current valuation for the business is also advisable.
Providing a framework for succession decreases the anxiety felt by both employees and management during any upheaval. Your Strategic Plan for a successful business succession can mean the difference between a viable company and a sinking ship.
Aside from creating strategic growth plans for companies, we often assist our clients in implementing the plans and making them measureable. One challenge many of our clients come across when implementing a new company direction is staff resistance. When a company moves into a new direction or introduces new ideas, there will always be employees who oppose or even sabotage the efforts. No matter how big or small your business is, getting key staff on board for any major company change is essential. Involving key staff in the strategic move is a brilliant way to keep up morale during difficult change and make the transition smoother for the entire organization.
Involve the People
The most important part of creating a strategic buy-in from key staff is involving these people in the planning process. Allowing management and staff members to be a part of the decision-making process gives them the opportunity to embrace the changes rather than struggling against them.
Listen to Feedback
No one wants to be ignored. Allowing key staff members to provide feedback is critical to creating a smooth transition within a company. When employees feel that their concerns are being taken seriously and their ideas are being considered, they are more likely to buy into decisions.
Keep it Simple
Management may sometimes find that when staff members do not support a decision, they simply do not fully understand what their roles are in the new company direction. They might also be unsure of what is expected of them. By communicating expectations and clearly defining employee roles and responsibilities, this confusion can be easily avoided.
Show Appreciation
It might seem like it should go unsaid, but it is important to show appreciation. When key staff members embrace change and provide input or feedback, a simple “thank you” can be a wonderful reward.
