Succession planning is a good way for companies to ensure that businesses are fully prepared to promote and advance all employees—not just those who…

Succession planning is the process of identifying the critical positions within an organization and developing action plans for individuals to assume those positions. A succession plan identifies future need of people with the skills and potential to perform leadership roles. Taking a holistic view of current and future goals, this type of preparation ensures that the right people are available for the right jobs today and in the years to come. It can also provide a liquidity event, which enables the transfer of ownership in a going concern to rising employees. Need for succession planning can be 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, wilful 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.