Succession planning is critical in ensuring any business is prepared for the future. Planning is a continuous process with which to maintain awareness of where the business is heading and to engage with employees.
The succession planning process helps senior management or business owners identify the key players and positions within the organisation, and hopefully prevents major disruption to operations or strategic goals arising from key departures.
The process also helps development of the business to be achieved in line with long-term ambitions.
Depending on the depth and objectives of the succession plan, this process will help to groom future successors at every level of the organisation not necessarily just at senior management level.
The succession plan should be considered alongside performance management (appraisal) systems, employee skill sets, training requirements, and individuals’ career aspirations.
Ambitious people within the organisation will hopefully appreciate the visibility a succession plan can provide and be encouraged to stay.
You may of course consider that some other form of exit is preferable (i.e. one not involving internal promotions or buy outs). In this case a trade sale or management buy-in (by “outsiders”) may be suitable. However, such a process needs long term preparation and good, careful communication with the workforce.
Succession planning in the business needs to dovetail with your personal goals and aspirations.
Meridian can support the succession process in several ways:
- By supporting the development of an appropriate succession plan
- In exit planning, helping you decide what exit route may best suit your personal economic and emotional needs, and the needs of the business
- By helping identify areas of threat in the succession plan
- Formulating plans for senior management succession – paving the way for management buyouts, advising on appropriate structures and (if required) leading the process
- Advising on employee and management reward and incentive schemes, including those with tax advantages
- Assisting with employee appraisals – for example if a neutral assessor is wanted or anonymous feedback is being sought