What is succession planning?
It is a plan to discover and train competent people who will hold leadership positions at your company when an employee currently in management positions leave. With this plan, you will have enough qualified human resources to replace retired, sick, fired employees. Important positions in the company will never be short of good people, and its ongoing development will continue. Continue reading to see the top 8 tips to help your company prepare.
It’s crucual to grow your company and build strong foundations for the future. Succession planning helps your employees realise their roles in the company’s development. It gives them the motivation to improve their work capacity and helps them feel more secure about their future in the company.
8 Succession Planning Considerations
Enable employees to work together
If you want to have generations of good employees, let people with excellent skills work with and support new people. In this way, knowledge and experience will pass on to the next generation. After about 1 to 2 years, when your new employees have done their good work, give them more challenging tasks. They need time to learn how to work and gain experience from more experience.
Cross-train your employees to share knowledge
Cross-training is a common term in managing employees. Allow dialogue between management and new hires to discuss how to get things done openly. Allow employees in your company to exchange knowledge and experience to work together freely. That will help employees have a comprehensive understanding of many areas of the company’s operations and increase their cohesion. Knowledge sharing will help employees respond quickly to new economic challenges and competitors.
Cross-train your employees to share knowledge
Cross-training is a common term in managing employees. Allow dialogue between management and new hires to discuss how to get things done openly. Allow employees in your company to exchange knowledge and experience to work together freely. That will help employees have a comprehensive understanding of many areas of the company’s operations and increase their cohesion. Knowledge sharing will help employees respond quickly to new economic challenges and competitors.
Eliminating silo mentality
Silo is a psychological state in which a group does not want to collaborate and share information with others in the same company. This mentality restrains the development of the company. To eliminate silo mentality, encourage a culture of mutual support and teamwork to keep information from hiding in the business. This environment will make employees work harder and allow employees to be more united and creative in solving company problems.
Be fair in the selection process
For family-owned companies, their family members may take over the business. However, it is not always in the company’s best interests because a family member may not be as suitable as some trusted company employees. Choosing the successor to take over the company’s leadership needs the candidate’s qualifications, merit, experience and company culture fit.
Be flexible
“Change is inevitable. Change is constant.” – Benjamin Disraeli. Unpredictable things happen, so you need to adjust your succession plan to suit the circumstances and cope with adverse changes. Be flexible, and it will not interrupt your succession plan. Changes in the business environment can take place every day.
Test your succession plan
To find out if an employee is a worthy successor, try putting them in leadership positions. You can either watch from afar or spending time relaxing at the beach while temporarily delegating management to a potential successor. The successor will gain management experience while you gain a better understanding of the person’s capabilities.
Know how to let go
Many business owners put much effort into developing a company from a startup to a big company. Or they take over the company from their families and consider it a tradition. Therefore, they find the company as the foundations of the family wealth and are deeply attached to it emotionally and financially.
Management levels
Apply succession planning to all levels of management. A company grows with the support of lower, mid and upper management being trained in succession planning.
Real Estate Investor, OSDORO
Bachelor of Applied Finance and Bachelor of Laws, Sydney, Australia.
David has been in real estate business since 2002 and has a passion for South East Asian cross border cooperation.
As an entrepreneur, David has won multiple tech industry awards, including 2019 for Best AI Startup GITEX awards, 2019 Best AI Technology Accathon Capital USA and recipient of the Wharton Innovation Fund Grant. His last startup, Woveon, was a New York VC backed AI enterprise business intelligence company that worked on customer data stitching and analytics of billions of conversations.
David is also the recipient of state and national Australia technology prizes including the PWC Innovation Award and Intel Enterprise Technology awards.
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