Companies are worried about succession planning, planning for future leadership and ownership. Studies show that even the top companies are concerned about this issue and do not feel that they are doing as well as they could with it. This is exactly the kind of planning that Rock Solid Law enjoys helping your company with.
Distilling some concepts from a Harvard Business Review article, here are some tips for successful succession planning:
Put your emphasis on developing future leadership through experience gained on the job. Develop your future leaders from within. In other words, change your thrust from succession planning to succession development.
Measure outcomes, not processes. Change the emphasis by establishing goals and tracking progress against those goals. Emphasize job performance rather than preparation of plans.
As in all things, keep it simple. Companies tend to adopt excessively complex assessment criteria into the succession planning. You know your business. Keep your assessments relative only to that which is most important.
Stay realistic. It is important that realistic goals are developed so that future leaders will not be frustrated by unrealistic expectations. Only give the promise of succession if there is a realistic chance of it happening!
We advise every client to put a succession plan in place. It is important that your succession plan is reduced to writing. We often include these plans in Shareholders Agreements and Operating Agreements. Rock Solid Law would be glad to help you develop your ideas for succession and reduce them into an Agreement that is right for the future of your company. Contact us or call 904-241-1113 today to schedule a consultation.