Do you want your business to outlast you? What will happen if you become disabled or not well enough to continue to manage it? These can be tough questions to think about because they require some thought about unpleasant topics, such as becoming seriously ill, injured or unexpectedly passing away. But if you care about your business, the people who work there and your legacy you need to think ahead, according to a recent article in Inc. magazine.
Have you developed, or at least trying to develop, leadership in your company? Succession planning is more than deciding who’s the most likely person to fill your shoes and it could take years of development, experience and training. According a recent Deloitte survey of business leaders,
- Nearly 90% state the success of their company depends on effective leadership succession.
- 13% have confidence in their succession plans.
- 54% said lack of talent has damaged their companies.
The article suggests ways to develop your company’s next leaders.
- Ideal leadership characteristics
What does it take to run your business ? Don’t come up with vague qualities like creativity and innovation or rely on subjective measures such as likability or loyalty. Simply being employed long enough and “due for a promotion” is not be enough. This could result in missing a better outside candidate and promoting the wrong person.
- Actions the next CEO needs to take
What are the specific actions the new CEO will have to accomplish? Oversee a merger? Develop new markets? Change the executive structure? A good leadership development program should strengthen employees’ ability to deliver results, develop new areas of expertise and uphold the company’s culture and values.
- Outline the fast-track process
Define how those with leadership talent are fast-tracked in your company. Be clear about who is headed to the top and how, by providing those employees with training, incentives and added authority.
- Build performance metrics
Track the development of leadership skills. Find ways to measure a candidate’s problem-solving and decision-making skills. One measure of intelligence and ability to manage people is determining how able this person is to negotiate and navigate problems with employees.
If you want to discuss planning for your business and all its legal ramifications, contact my office. We can talk about what you want for the future of your business and make sure there are no legal obstacles in your way.