When you’re the leader of a major company—or even a smaller business—it’s only natural to wonder about the future. What will happen to the company once you step aside? Who will run it should you die unexpectedly, or find yourself medically incapacitated?
Succession planning helps to address these issues and provide a road map for how the company can be kept healthy and alive even after you move on. Succession planning is a complex endeavor, though, and there are several fundamental issues to consider.
Here are some of the main ones.
The Major Factors in Succession Planning
Is your succession plan for everyone? Some companies include all employees in their succession planning; as soon as a new team member is onboarded, he or she is given a path forward within the company. Other companies only include high-potential employees in their estate planning—which can bring greater clarity, but also runs the risk of overlooking some promising people.
Should you promote from within? A critical question for succession planning: Will your future leaders be hired from within, or brought on from outside the company? Internal hires are often preferable, assuming there is someone in your company who is qualified and interested in the job.
What about diversity? Succession planning should also be done with diversity in mind. It’s tempting to mentor new leaders who are just like you, but casting a wider net may be the best thing for your business.
How will you get buy-in? Simply put: Will you be able to get everyone in your company on board with your succession plan—or will there be resistance?
All of these factors deserve serious thought—and we’re here to help you think through these and many related issues. Singh Law Firm can provide the legal guidance you need to make your succession planning efforts successful. Reach out to us to schedule a consultation.
Learn more about succession planning from Singh Law Firm.