Step 4  Develop a Succession Plan
So, you’ve established your financial objectives, chosen a successor and determined your company’s worth. The time has come to develop your succession plan (also called a transition plan).
What should you do during this step?
Preparing your succession plan is a key step that will help ensure the success of the transfer of leadership (also called the transfer of management). Thoroughness and organization are mandatory in developing the plan. Above all, the plan must be clearly explained to everyone it will affect, both inside and outside the company.
This extremely important plan should provide answers to the questions below:
- Should you create a transition committee? If so, what should its role be?
- What are your expectations? What are your successor’s expectations?
- Do you want to continue working in the company as an advisor or member of the board of directors?
- Do you plan to recognize the contribution of your key employees through a profit-sharing plan or other means?
- Will your successor require training or coaching?
- What will be the timetable leading to the arrival of your successor?
A succession plan can have a time frame of several months or even a few years, and rigorous follow-up is required. The plan should also be updated from time to time to reflect changes in the company and the markets in which the company does business.
What resources are required?
Human resources and management professionals can help you successfully complete this step. Your transfer manager can recommend specialists in your region and make referrals. Like all the experts he/she suggests, they will have been evaluated by National Bank based on their expertise and customer satisfaction ratings.
Next step...
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