If you’re the CEO and/or the owner of a company and want to ensure a suitable successor takes the reigns when you decide to retire or change focus, then you’ll undoubtedly want to learn more about the advantages of succession planning.
Alternatively, you might be concerned about another business-critical position in the company and be wondering whether it’s even worth creating a succession plan or backup plan for this role.
Luckily, whatever your reason might be for wanting to learn more about the benefits of succession planning, the experienced solicitors at Wilson Browne can help.
What are the advantages of succession planning?
Wondering how does succession planning benefit the organisation you work for? Like any form of planning, clear and comprehensive succession planning has many benefits for all kinds of businesses. We explain some of the key benefits of succession planning in more detail below.
Smoother and faster leadership transition
A smooth leadership or ownership change is one of the most obvious and important advantages of succession planning. By taking the time to identify the most suitable potential successors and preparing for the transition, disruption to the business can be limited.
A quick and hassle-free succession is especially important for business-critical positions, such as the Finance Director or the Sales Director, which are involved in the everyday running of the company.
Training and development opportunities
In many cases, succession planning involves training an existing employee/manager, to take the place of the individual leaving the business. As a result, companies which implement succession planning typically provide greater opportunities for employees to train and develop their skills.
In turn, this can encourage staff retention and internal promotions, which can also help to boost workplace satisfaction. Furthermore, this process also encourages the continual search amongst existing employees with the right skills, values, and attitude to move into leadership positions.
Stronger brand identity
When you put greater time and effort into choosing a successor, the likelihood of them understanding the business inside-out and being able to continue the company’s existing success is much higher. Not only does this ensure adequate leadership straightaway, but it also helps to strengthen the brand identity of the business as well as its values and reputation.
Unlike an external hire, which may be taken in an emergency situation, the right successor has an in-depth understanding of the company’s target customer base. As a result, they can promote the company’s core values more effectively than an outsider.
Future-proofs the business
From insurance to security systems, there are many ways that you can protect your business, and succession planning is no exception. While the daily running of the business may seem like a priority, failing to create a succession plan either for yourself as the owner or CEO, or for other key positions in the company, can lead to disaster later down the line.
Unexpected occurrences like an individual falling seriously ill, or failing to identify business-critical roles, can lead to a lack of leadership at a time when your business needs it the most.
Succession planning can therefore offer peace of mind to all employees (including yourself) and reassure stakeholders.
Promotes long-term planning
As the old saying goes, if you fail to plan, you plan to fail. With succession planning, you can prepare for unexpected exits as well as planned retirements and resignations with significant notice periods.
Long-term plans (looking up to 10 years ahead) can help a company with decision-making, resulting in more efficient operations and ensuring stakeholders, investors, and senior employees are all on the same page
How Wilson Browne can help your business reap the benefits of succession planning
In search of professional legal guidance to support your organisation’s succession planning needs? Don’t hesitate to get in touch with the team of experienced corporate and commercial solicitors at Wilson Browne.
Thanks to the many benefits of succession planning, we’ve helped countless clients to secure the continued success of their business with our pragmatic and affordable succession planning services.
We’ve opened offices across the UK including locations like Leicester, Northampton, Corby, Higham Ferrers , Kettering, and Wellingborough. This variety of UK locations ensures we can help customers no matter where they’re located, but our team can also travel to a more convenient location if required.
To find out more about our succession planning services and how we can help your business to operate smoothly through a transition in ownership or leadership, please feel free to contact our team today.