Assuring Successful Succession Planning
Assuring Successful Succession Planning

Assuring Successful Succession Planning

For many entrepreneurs, their business is like their baby and they cannot imagine giving it over to another person. That is, until they reach retirement age, fall ill, or experience another extenuating circumstance. Like a will, a succession plan is something nobody likes to think about until it’s too late. Here are some approaches to the succession planning process that will help remove any confusion or anxiety about the process.

Start Early

It’s important to start discussions about C-Suite succession earlier than you think you should. Even if your CEO plans to stick around for another 10 years, there’s always the chance of a prolonged illness or some other event that could leave your organization without a leader. Have an emergency plan so that you’re prepared if the CEO is suddenly unable to lead.

Consult Stakeholders to Define Skill Sets

Especially for companies looking to retire their first CEO, the next top executive may need very different skills than the original; you’re not looking for a clone. The grit required to start a company is different than the strategy needed to sustain it in the long term. The board, other C-Suite executives and high-level managers could all have valuable ideas that the CEO might not consider.

Document the Plan

PricewaterhouseCoopers conducted a study of mid-market businesses, and of the 154 they surveyed, half had a succession plan but only 1 in 6 could say it was a robust and documented plan. When you start planning, record everything! Your plan will be an evolving document, but whatever iteration exists when it’s time for succession will provide a blueprint to implementing the exiting leader and stakeholders’ plan. Afterward, you can compare the plan to the actual events so as to improve future succession plans.

Engage in Continuous Professional Development

No matter how much you plan, there’s always a chance that some unforeseen circumstance will throw a wrench in that plan. In addition to contributing to a positive culture, professional development also provides a pool of potential new leaders from within your company who are statistically more likely to succeed than leaders brought in from outside the business. Should an emergency arise before your succession plan is fully realized, you’ll have people who can step up and hold the business together.

Get Everyone on the Same Page

Communication among stakeholders is vitally important to making the succession process go smoothly. Before the CEO leaves, he or she should be prepared to let go of the reigns, other leaders should be on board with the successor, and employees (especially direct reports) should be informed of how the handing over of responsibility will happen.

Building a succession plan is an integral part of your long-term strategy for the company, but it does not have to be stressful. For more tips on how entrepreneurs can maximize their impact, check out our whitepaper.


Sources: PricewaterhouseCoopers, Workforce.com

More to Discover

2019 HR & Compliance Web Summit: Executive Summary

2019 HR & Compliance Web Summit: Executive Summary

With 20,000+ registrations, this was Paycor’s biggest and best web summit yet!Industry experts like Jennifer McClure offered actionable insights and advice on all things HR, from self-care for the HR pro to in-the-news compliance issues. If you missed the live webinars you can watch them on our on-demand webinar page.In the meantime, here’s a quick overview of each session. 5 Steps to Become a Strategic HR Leader | Speaker: Lori Kleiman In today’s business environment only 20% of HR professionals interact with the executive suite. Lori Kleiman says it’s time to stop waiting for your gold embroidered invitation and finally take your seat on the leadership team. Ready to become a strategic HR leader? Follow this 5 step plan: Engage...

Banker

Paycor + Regions Bank: A Homerun Partnership for the Birmingham Barons

Paycor + Regions Bank: A Homerun Partnership for the Birmingham Barons

Providing fans with an unforgettable experience is paramount for the Birmingham Barons. From sales and ticket takers to concessions and ballpark operations the entire Barons staff plays a vital role in making home games at Regions Field a can’t miss event for the community. And as preparation starts for opening day, hiring takes off. With nearly 700 seasonal employees hired each year, the Barons rely on Paycor to help automate manual HR processes like payroll, reporting and timekeeping.Check out this video to learn how Paycor has increased efficiency and streamlined HR operations for the Barons.

Broker

How to Help Your Clients Prove Their Value to the C-Suite

How to Help Your Clients Prove Their Value to the C-Suite

HR professionals are sitting on a goldmine of data, but they’re constantly fighting an uphill battle when it comes to proving their value to the C-suite. For starters, they aren’t data scientists and often lack the support, resources and budget needed to make sense of the data, let alone measure its financial impact.In 2015, 20% of business leaders trusted HR to use data to anticipate and help fill talent needs. By 2018, that number dropped to only 11%. The problem is twofold: some HR teams (especially if you are a solo practitioner) still spend too much time on transactional HR functions that should be automated. That doesn’t leave a lot of time for much else. Secondly, HR often doesn’t have the tools they need to access or interpret...

Webinar: Meet Paycor Analytics - The Next Generation People Analytics Platform

Webinar: Meet Paycor Analytics - The Next Generation People Analytics Platform

It’s here! Paycor Analytics, the next generation people analytics platform that will transform the way you manage your workforce, is now available. Paycor Analytics provides user-friendly insights to help you answer the right questions about your workforce by transforming complex data into trends, predictions and powerful benchmarking so you can make business critical decisions every day.Give us 15 minutes of your time and we’ll show how Paycor Analytics will change the way you answer important questions about your workforce.