Business is humming along at a profitable level and maybe you’re thinking it’s time to prop up your feet up and enjoy your hard work. But before you pull out the lawn chair, make sure you’ve taken the time to craft a solid business succession plan.
A British talent analytics company reported in 2012 close to half of the companies operating in Britain had an unforeseen change in leadership. It’s a similar story in the U.S. But we tend to avoid crafting succession plans. Chalk it up to our tendency to expect today to be the same as yesterday. We’re wired to cling to our routines, but failing to craft a succession plan can prove disastrous for an enterprise.
Here’s a list of questions to consider now should a high-level unanticipated change in management take a firm by surprise.
- Have you outlined a plan for a crisis that strikes at the core of your leadership? The first task is to appoint a person to take the reins before a tragedy befalls a key man. Which staff member will be tasked to pick up the reins? Once you’ve decided on an individual you would trust to take on the leadership role in a crisis, you’re task has only begun.
- That individual who takes the reins should be familiar with the challenges that follow a loss of a key person, as well as the impact that plays out over the course of the following year. Never underestimate the impact of grief on a company’s employees when a key person passes away unexpectedly. Grief is not always a linear, tidy process. Expect some setbacks in the transition period. There will be days when emotions run high and that can influence crucial decisions in a negative way.
- Don’t expect leaders to step up without support. The person tasked with assuming the leadership role may be suffering such intense grief that it will unduly color extremely important decisions that must be decided upon quickly. Objectivity is essential in steering a company through an unexpected crisis.
- Another urgent matter is the need to reassure all stakeholders in the enterprise. Make sure these individuals are briefed as quickly as possible. Also take measures to control rumors, which could prove damaging to the company’s sales or stock values.
With a solid succession plan in place, a business can emerge stronger, with new competencies and a staff that appreciates the wisdom gleaned from enduring and emerging from a crisis.