vital advantages and drawbacks of succession planning

Here’s an early career lesson I learned about one of the vital advantages and drawbacks of succession planning:

decades ago I worked for a significant privately held manufacturer whose quantity two executive used to be the presumed heir obvious for decades. Then, the aging founder and CEO had a change of coronary heart regardless of very victorious efficiency by using that person and named his daughter to be the successor to run the organization. The manufacturer was then break up into two significant unbiased companies with the quantity two character as CEO of a new entity that was now not owned by way of the fashioned company.

When you consider that then, I’ve realized different main lessons in regards to the advantages and drawbacks of succession planning, which i am going to share with you here for the duration of the rest of this publish, however first…
fast abstract
Key benefits

the advantages of succession planning include the opportunity to:

habits a SWOT evaluation of the business to assess its management needs now and in the coming years
boost a strategic management Human resource Plan that includes complete role descriptions, needs evaluation and plans to bridge the gaps
build relationships with and cautiously gain knowledge of the performance and conduct of successors over a protracted period of time
provide a way of direction, stability and expectations for all key stakeholders: employees, patrons, shareholders and carriers
retain a seriously essential employee who would in any other case leave if now not formally famous because the successor

Key risks

It’s complicated to think that there probably dangers to succession planning however listed below are some matters to recall:

Appointing the mistaken person can lead to a kind of issues that result in poorer enterprise efficiency and turnover
Pulling the set off too quickly to nominate any one only to have a greater candidate show up later on
undertaking succession planning when the trade is immature may just result in misguided conclusions about management desires
A poorly performed succession planning method will result in bad selections, disharmony and ultimately terrible company efficiency as well

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