Why Is It Important To Have A Succession Plan In Place? – WalkWater Talent Advisors

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Establishing a business takes lots of effort,
time, and experience but growing it further
takes a lot more than that. You need intense
strategic planning and determination to maintain
and nurture your business, which is not
everyones cup of tea.
Many businesses want to just look at their
present, and are reluctant to consider their
long-term future. In fact, as per a study, it has
been found that only 20 of Indian businesses
have a succession plan in place! What is a
succession plan? A succession plan is an exit
strategy that is put into effect to identify
individuals for future leadership positions,
when a current senior executive plans to leave
the company. This ensures a seamless transition,
wherein the business can continue to run
smoothly even after the companys most important
person(s) resign. Succession planning involves
cross-training employees so as to develop skills,
company knowledge, and a holistic understanding
of the company. How does succession planning work?
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• Succession planning evaluates every senior
  executives skills, and identifies potential
  replacements within the company. The potential
  employees are trained in a way that they are
  prepared to take over the position(s), in case
  such a situation arises in the future. However,
  this is not a one-time event a succession plan
  should be consistently re-evaluated and
  potentially updated every year, or as the changes
  require. In addition, there could be a
  requirement of an emergency succession plan, in
  the case where an important senior executive
  needs to be replaced unexpectedly and
  immediately.
• Factors that need to be considered
• Although there are amazing benefits that a
  succession plan can bring, there are a few
  factors that need to be considered in order to
  make it successful.
• It is important to identify candidates who share
  the same norms and values, so they can easily be
  embedded into the company culture.
• A track record of success is essential to
  convince that the candidates have the knowledge
  and experience to do well in the sector.
• Candidates who enjoy learning and growing into a
  role are ultimately the ones who should be
  identified, because the succession plan can take
  years to be accomplished.
• Why doesnt every company implement a succession
  plan?
• While it is crucial that every company implements
  a succession plan, it isnt the case. As
  mentioned above, only 20 of businesses in India
  have such a plan in place. Why the rest of the
  businesses fail to do so is because senior
  executives fail to envisage that one day they
  will be gone, or may not like the thought of
  handling the power over to someone else. Another
  very common excuse seen is the time investment.
  Because it can take years to put a succession
  plan into effect, it gives companies a clear
  excuse that they dont have the time.
• Its absolutely clear that having a succession
  plan in place can help a company reap the best
  benefits, and those who fail to implement such a
  plan have to face the consequences when a senior
  executive has to vacate their position. However,
  it isnt a 100 assurance that a succession plan
  will always succeed. Thats because any flaws in
  the process or administration may result in
  failure. But that doesnt mean you shouldnt
  implement such a plan. You should certainly
  employ a succession plan in your organization,
  but in addition, you should always have the best
  executive

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search firms in India partnered with, so that you
always have the finest candidates waiting to be
hired whenever you want a senior level position
occupied. For more information, visit
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