Succession Planning

Preparing yourself and
your business for change

Planning ahead with the help of a Sudbury’s advisor can help preserve the value of your business—and make future transitions go smoothly. It’s a process that should be considered throughout the life of a business, not just a when owners are preparing to retire. It ensures as a business owner you have considered issues like transfer of assets, development of key employees and tax implications and it’s a critical area of business that we can help you cover.

Our 5 Step Succession Planning Process

1. Identify Critical Positions

They say that no job is irreplaceable but that may not be quite right when you have key people in critical roles with specialist knowledge. Its often an issue for small business but can be just as detrimental for large organisations with the cultural drive behind a charismatic leader or critical supplier relationships dependent on a respected employee.

2. Identify Competences

When planning for succession, it’s important to identify the key competencies of those people who are critical for business continuance. Whether the risk is identified, for example a retiring business owner, or your business needs to cover for contingencies, that the role is critical and that person could leave with short notice, key competencies must be identified.

3. Identify Succession Management Strategies

Succession management strategies could include:

  • Training and developing people within the business
  • Identifying potential recruitment external to the business.
  • Outsourcing external freelance, contract or business partners to fulfil the competency shortfall
  • Hire for diversity not necessary employing a cookie cutter of the person leaving

Document & Implement Succession Plans

Where a succession plan becomes a priority the plan should link talent development with the strategic goals of the board, the business and the staff.

A succession planning program compiles the skills, abilities and goals of each employee, compares them to the needs of current and future roles, and tracks employee progress toward being ready to fill those roles.

Review & Evaluate Effectiveness

Review the succession plan with the management team and the board at least every 12 to 15 months and whenever there is a major change in leadership or in corporate strategy. This ensures that you are always up to date on the development of your top talent and that you identify any changes in direction that might require a tweak to the plan.

Contact us for some proactive business advice today

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