Why is there a need for succession planning in business? Explain.

Need for succession planning in business is explained below: Risk mitigation If existing leader quits, then searches can take six-nine months for suitable candidate to close. Keeping an organization without leader can invite disruption, uncertainty, conflict and endangers future competitiveness. Cause removal If the existing leader is culpable of gross negligence, fraud, willful misconduct, or material breach while discharging duties and has been barred from undertaking further activities by court, arbitral tribunal, management, stakeholders or any other agency. Talent pipeline Succession planning keep employees motivated and determined as it can help them obtaining more visibility around career paths expected, which would help in retaining the knowledge bank created by company over a period of time and leverage upon the same. Conflict Resolution Mechanism – This planning is very helpful in promoting open and transparent communication and settlement of conflicts. Aligning In family owned business succession planning helps to align with the culture, vision, direction and values of the business.