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Top 3 Reasons You Should Be Developing a Succession Plan as An Organizational Leader

According to a report by Challenger, Gray & Christmas, more CEO’s left their jobs than any other prior year since the start of their research in 2002. Leaders are leaving their top position posts for four reasons including reaching retirement age, burnout, underperformance, and the need to level-up to a new role. Similarly, the US Bureau of Labor reports staff turnover in 2023 to be nearly 4% including both layoffs and resignations.

 

You may have recently experienced a crisis that has you considering to leave your post, or you might be dealing with the nagging thoughts of your retirement on the horizon and how you can move forward. Or perhaps you are working through a member of your staff’s sudden departure. Regardless, a succession plan is the single answer to manage any staff transition effectively.

 

Here are three reasons why you and your organization should be developing a succession plan now so that you may help your company navigate smoothly through anticipated change.

 

1)    To Protect Institutional Knowledge 

 

You as a leader have become a brain trust of insights and knowledge not just of your organization’s brand or product and service offerings, but of key partnerships with community members, sponsors, and most of all clients. A succession plan helps preserve this knowledge by transferring it to a new leader well in advance through the identification of a successor and a detailed training or onboarding program.

 

2)  To Advance Employee Development & Engagement

 

Succession planning isn’t just for what to do when you decide to move on. Most importantly, it can help you identify internal talent and the opportunity to develop talent for other roles within your organization.

 

Talent development planning builds a culture of growth and development, creating a robust employee pipeline, ensuring your company always has skilled workers and leaders ready to take on new challenges. When your employees see a clear path to advancement, they are more likely to be engaged and committed to the organization, reducing turnover and increasing their performance in their current roles.

 

3)  To Create and Sustain Long-term Value 

 

By integrating succession planning into the overall business strategy, you can ensure goals and long-term strategy remain a viable aspect through your leadership transition and beyond. Additionally, a solid succession plan signals that your organization is well-management prepared for a future of growth. Investors, clients, and partners are more likely to support and invest in a company that demonstrates proactive planning and stability – creating confidence and value.

 

Whether you are a small business owner or leader of an organization that reports to a group of key stakeholders, one thing is for sure – a succession plan is a critical piece in long-term stability and continuity for a company. Without it, organizations are at risk of significant losses and even becoming extinct.

 

Ready to have a discussion to explore how you are planning your succession, or your existing plan needs updating – contact Alignment Advising today.

 



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