In April, we asked our readers if their companies have a comprehensive succession plan in place, and the results showed that more than half (54%) are not prepared to lose a top leader. It’s a surprising statistic that indicates many businesses could be setting themselves up for a difficult situation should a shake up among the ranks unexpectedly occur.
The full results to the poll are as follows:
- 54% do not have any succession plans in place
- 27% have a general consensus of succession, but nothing official
- 19% are prepared with succession plans in place
Succession plans are an important part of ensuring the longevity of a company. Among other benefits, they can help you:
Prepare for the unexpected.
The exit of some top talent can be planned years in advance, like retirement or promotions. Others hit you like a ton of bricks—and often at the worst moments possible. From loss of talent to a competitor to an unexpected death, it’s vital to have a plan in place to address such variables, even if you never have to use it.
Identify rising stars.
Companies who actively develop their succession plans are able to put action steps in place to develop future company leaders from within their current workforce. So, when the time comes, you’ll already know who among your employees are ready to step up and take the reins.
Build employee confidence in the stability of the company.
Employees want to know their careers are safe. By communicating company succession plans, workers can rest assured the company will be in good hands for many years to come and won’t be tempted to start seeking greener pastures.
Has having a succession plan played a role in your company’s success? Tell us about it in the comments section below.
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