Succession Planning is a strategy for passing on leadership roles often the ownership of a company to an employee or group of employees. Also known as replacement planning. It ensures that businesses continue to run smoothly after a company’s most important people move on to new opportunities, retire or pass away.
Actually there are three steps of Succession planning;
- First we will look to identify the company’s key future position,
- Secondly we will have to identify the candidate who will really deserve this position and,
- Lastly have to select the most capable person.
There are two kinds of succession planning;
- Emergency or Contingency Planning: Where we will have to plan suddenly or any kinds of emergency condition cause life is so unpredictable we don’t know what will be happen next.
- Long term or proactive planning: It’s about setting a process by which a particular strategic planning will be achieved from the very beginning.
Benefits of Contingency Planning:
Reduces Uncertainty: The uncertainty which is induced for that man isn’t with us in there it can reduced uncertainty by this succession planning.
Continuity of work: The absent of CEO or any kind of important person, company have to go through smoothly so that this planning will run the continuity of work flow.
Prevents Panic: For the absent of important person who can run company, this is so worried things for one company. If that planning makes from the beginning that panic will also be reduce by finding any alternative way.
Benefits of proactive Planning:
Planning ahead: Planning can go ahead by making cascade of work flow which was maintained by past CEO.
Finding the Qualified experts: capable expert have to find for that position who will give that company effective knowledge and transfer it to all efficiently.
From this two types of succession planning long term is always good and reason behind this is, everything is well maintained from the very beginning so that if any types of accident occurs in future then that planning will help to find the reliable and capable person as soon as possible.
So why Succession planning is important?
We all got a clear cut ideas from above. So if I want to say in short that why this is so important then I’ll say:
- It can identify the capable future leader.
- Minimizes Recruitment Cost
- Keeps a company always cheerful.
Faria Ahmed Oyshee
Intern- Admin & HR