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No entrepreneur wants to feel mortal. That's why so few businesses have a succession plan in place before the leader leaves. The effect is very costly though. According to the Small Business Administration (SBA), only 30% of family owned businesses succeed into the next generation. A good succession plan:
The process for identifying a candidate for succession planning can be tougher than expected. When you are faced with the challenge of filling a position, you should act fast. Succession planning can encourage a seamless switch over; making sure the person taking over has a working knowledge of the position. This type of planning will also increase the availability of other capable employees to fill higher positions. As you move up the ranks, everything starts to fall into place.
The interchangeable term "replacement planning," is at the heart of this issue. The fundamental idea behind the concept is that the best talent in the corporation must be managed for the greater good of the company. Choose the next in line for a lucrative position and you will have achieved an effective succession decision. Managing the talent pool in your company isn't as easy as it sounds–there are many things to consider. Identify the best back-up candidates for all of the coveted senior management positions to insure a successful promotion chain.
Many business owners have taken on a "talent mindset" when it comes to the training and the leadership culture of their company. This makes the employees aware and open to the idea of what it takes to move up. Succession planning can fall short of their target if business owners and management aren't ahead of the game. Stay on target; speak with these resources to learn more.