By 
SMEs that fail to apply the succession planning process to their enterprise are failing to unlock the value and full potential of their business. Succession planning is a critical business strategy to ensure the short and long-term future of business. It is a tactical exercise that makes for a healthy business and a dynamic business culture.The wisdom of this process ensures a course that will help maximize value of the company’s human resources. What many SMEs and family-owned businesses do not understand is that this process is not only affective in big businesses but is even more critically necessary for medium and small enterprises that need a strong, vibrant and dedicated business structure to compete in today’s marketplace.
In today’s collaborative environment, the business without a succession plan is ill-prepared to compete on a local, national or global scene. Businesses with succession plans will soon arrive in your market and will have a distinct competitive edge.There are very few SMEs that do not need a cultural makeover. In fact, you know that because you see businesses closing their doors every day. If achieving your personal business and financial goals is important to you and you do not have a corporate culture that is qualified to join in an open source, cross organizational collaborative environment, your goals will fall by the wayside.
Succession planning identifies the company’s most qualified leaders and the company’s employees with leadership potential. In SMEs, this can mean setting aside time to interview numerous existing personnel. The goal is to find the worker’s career vision and passion. Potential leaders must begin training, cross-training and working independently on monitored projects. Succession planning takes commitment by management and commitment by existing leaders and potential leaders within the organization. Succession planning reduces the pain from key employee departures and gives the company the depth to expand into new markets across the country or planet. The process takes time and observation. Every participant is given a clear description of company goals and is trained to fill certain needs that the goals demand.
The Benefits of Succession Planning
• Increased, company-wide motivation – Employees see short and long-term stability. Employees see a path to their personal career goals.
• Increased company-wide morale – Motivated employees raise morale across the board.
• Stress relief – SMEs without success plans can be devastated by key employee defections. SMEs with succession planning are prepared to respond to any personnel or expansion effort.
• Increased production – The SME has constructed a positive, stable environment where responsibilities are spread across the table and allow all employees to pursue solutions that inspire them.
• Increase loyalty – SMEs with effective succession planning have a road map to the future that employees can understand and are much more willing to go the extra mile to advance the brand.
• Customer loyalty – Customers want to know the businesses they do business with are stable and have a vision and commitment the future. No one part is greater than the sum of all parts.
• Lender and investor loyalty – Your lenders and your investors will be much more attentive and solicitous if they know there is a long-term succession plan with define goals in place.
• Supplier loyalty – They may not say it but suppliers are more willing to extend credit to businesses that have a mission and the support network in place.
SMEs must support their business model with a succession plan. Succession planning means defining the company’s goals and strategies and coordinating them by training leadership candidates to help achieve these targets. You must be committed to your goals. To unlock the value and maximize the value of your company en route to achieving your personal business and financial goals, succession planning is the coordinated alignment of your human capital with your vision for success.
Comments