Succession planning requires stepping back and looking at the big picture of your business and all of the key players responsible for maintaining it. Taking a holistic view of your future as well as your current goals ensures that you have the right training, the right people, and the right systems and processes in place in the event that you needed to exit the company suddenly.
You need to ensure that your succession planning strategy is closely aligned with your overall business goals, and that you work early to engage executive and any other senior leaders in the process. In the event that you need to develop a further talent bench in your company to allow for a more seamless transition, this can take a great deal of time to recruit, train and support these new team members.
Most businesses do not have a documented succession plan, which puts co-owners and key employees in a very difficult position if a company leader needs to exit very suddenly, whether by choice or involuntarily.
Your business can experience major disruptions without a documented business succession strategy, and it is strongly recommended that you create one and update it every few years to verify that you have considered all possible issues.
It’s not enough to think about a succession strategy. You also need to walk through the likelihood that the people currently in the business will want to stay there and assume leadership roles. This way you can determine where you need to hire others or establish talent training pipelines.
Contact a Pasadena business succession lawyer today for more help.