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Some Fundamentals of Business Succession Planning

On Behalf of | Dec 20, 2021 | Business Succession

Someday, you will be stepping down from the helm of your business or corporation and handing your duties over to someone else. Other key roles will have to be filled by the right people as well. 

That transfer of authority and leadership at the pinnacle and among the C-suite executives probably won’t happen successfully and seamlessly unless it is carefully crafted beforehand. A lot of thought and strategizing has to take place prior to this kind of major corporate transition. The business succession planning process itself may take as much as one to three years.

One of the crucial elements of business succession involves picking the person who will be next in line for the top spot. The individual who will inherit your responsibilities should have stellar qualities such as flexibility, a knack for coping with the unknown, an aptitude for acquiring new capabilities and being unflappable in the face of shifting circumstances. 

Hopefully, your designated heir will possess vision, approachability and deep knowledge of the organization. 

Grouping roles into categories to fill them with new people

You and your associates who are leading the succession planning process could think about whose interests and skills align best with roles in broad categories like these:

  • Positions that demand specialized knowledge or are unique to your company
  • Roles that have a lengthy or complex learning process
  • Positions in which people learn on the job 
  • Positions connected with goal-setting or other major decisions
  • Roles that are central to your company’s long-range aims

Welcome input from many sources 

Business succession planning can work well when people across many disciplines within an organization contribute their expertise and insight. In addition, you may want to have outside professional input just to make sure that everything is handled in accordance with applicable regulations.

Notice: We are providing this as general information only, and it should not be considered legal advice, which depends on the facts of each specific situation. Receipt of this content does not establish an attorney-client relationship.