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Succession plans vital to the life of a successful business

The day will come when its time to leave your business. Do you have a succession plan in place?Do you have a succession plan in place for the day you decide to move on?

Deep down every manager knows they won’t be running a business until the day they die. That is why it is very important to have a succession place in make sure the transition from one leader to another is smooth and the business is not adversely affected by this move.

According to research from recruitment agency Hays, many businesses say they haven’t got the resources to worry about succession planning, and the cost of losing someone in a key role is increased in a small companies making managing this risk worth the time and effort.

Have a plan in place – stick to it

“Having a succession plans helps you to attract and retain the best staff who are committed to the business, which in turn should result in increased productivity and loyalty.” – NSW Business Chamber.

Planning is always the best way to handle an issue like succession. By developing a well-structured succession plan into the strategy of your business, many of the risks associated with a transfer of leadership can be avoided.

Creating one well in advance of your departure is always more likely to succeed and is create more long-term value than one that is simply allowed to continue without a plan.

According to the NSW Business Chamber, having a succession plan in place has a number of benefits for a business. The Chamber states, “it helps you to attract and retain the best staff who are committed to the business, which in turn should result in increased productivity and loyalty”.

A succession plan clarifies for everyone who is in charge and who can make key decisions. Plus, it ensures you have someone to handle emergencies if your star performer suddenly needs to take extended leave.

Don’t cut ties and run – stay connected 

Even once you have started at your new job, you shouldn’t lose contact with your former colleagues. If you left your job on good terms, this should not be too much of an issue.

According to Hays, because the business community can be a small one, it is were important you do not lose those relationships you developed at your old job. This is especially true if your former employees are now in a position of leadership. They may need your help and this is a good way to keep your legacy intact with the business.

“Everyone leaves an organisation at some stage,” says Hays CEO, Alistair Cox. “It’s your job to make sure that the organisation doesn’t miss a beat when your own time comes. And if you do it well, not only will you leave the organisation with your reputation intact, you will actually leave with your reputation enhanced,” says Mr Cox.