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Tips for Creating a Succession Plan

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Developing succession plans is one of those human resource tasks that seem challenging but are necessary for any company. Fortunately, it is possible to divide the succession plan into smaller and more digestible steps that help implement this initiative developed especially for companies to avoid talent gaps, keep employees engaged, and be able to identify future leaders of the company.

Companies must establish a succession plan that allows for the retirement of these people to give way to a generational replacement, and prepare the best talent to occupy positions that are fundamental for the permanence, development, and profitability of the organization.

To develop a succession plan that meets the needs of the company and manages to motivate the people in the organization, it is necessary to take into account some key elements:

  1. Define charge profiles – Position profiles are essential for any process that you want to consider in Human Management. They provide the minimum requirements that people must have to fill any position in the organization. The job profiles are constituted in the road map to prepare the succession plans since they provide the requirements and levels of development of those key competencies.
  2. Identify critical charges – Another task that must be executed is to identify those positions that are essential to fulfill the mission and achieve the strategic objectives of the organization. It is advisable to use a matrix of critical positions, where through the selection of some analysis criteria, points are assigned to rank the different functional positions.Some examples of scoring criteria can be the weight of a position in the organization’s decision making, the business impact of a bad decision, relationship with customers or relationship with suppliers. This process will identify the positions for which a talent pool should begin to be built.
  3. Search strategic alliances – It is necessary that the succession plans have the full support and commitment of the managers. It is the only way for people to commit to the results and generate credibility to maintain motivation.
  4. Use quantitative tools – The evaluation of people who will replace critical positions should always be based on objective criteria. A table with statistics and results is essential for monitoring, implementing development plans and making fair and accurate decisions.
  5. Have a retention plan – The succession plan is not limited to talent identification. It also implies an effort to develop and retain it. Retention plans should point to the aspirations and needs of people. Benefits such as flexible hours, educational assistance or, telecommuting may be options that may even better value beyond mere monetary compensation.
  6. Don’t wait – A succession plan must be planned in time, it is not a process that can be done in just a few weeks. It implies a structured scheme for selecting people with high potential and a development plan. The plan must contemplate several horizontal movements of the person through different functional areas of the organization.

Contact an Experienced Business Planning Attorney 

Because of the importance of a succession plan to a business, you should not try to create one without the assistance of an attorney. Contact Tampa business transaction & formation attorney David Toback today to schedule a consultation and ensure your peace of mind and the future success of your business.

 

Resource:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0607/0607.html

https://www.davidtobacklaw.com/dont-leave-your-business-without-a-plan/

 

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