This is by no means a comprehensive list, succession planning can be a
minefield, but here are some of the primary pitfalls to avoid.
1. Starting to plan too late. If you are in business and haven’t started your plan, assuming it will all work itself out in the end, you’re already behind the eight-ball. This laissez faire attitude will come back to bite you when you least expect it. You never know what’s around the corner - any of us could get hit by a bus tomorrow; if it was you, what would happen to your business, and how would your loved ones manage?
minefield, but here are some of the primary pitfalls to avoid.
1. Starting to plan too late. If you are in business and haven’t started your plan, assuming it will all work itself out in the end, you’re already behind the eight-ball. This laissez faire attitude will come back to bite you when you least expect it. You never know what’s around the corner - any of us could get hit by a bus tomorrow; if it was you, what would happen to your business, and how would your loved ones manage?
2. Not having a set of defined goals. You’ve heard this before about business planning. I know it’s a pain, but you need to know what your goals are before you decide on how you’re going to get there - or you may end up somewhere else!
3. Not involving all the stakeholders. Succession planning is not a solitary exercise.If you intend your successor to be a member of your family, bring everybody concerned together and form a family council; start meeting, start planning - get your act together.
Then there’s the management team, they need to be involved - after all it’s these people who run the company on a day-to-day basis.
Then there’s the management team, they need to be involved - after all it’s these people who run the company on a day-to-day basis.
4. Not getting buy-in from all the players.If you are blind to the fact that several of the stakeholders (and this could include partners, family, management, staff) are unhappy, or nervous about your succession plan, this can destabilize your business. It can lead to family strife and the loss of key employees.Communicate the plan (it needn’t be the whole plan - remove, or black out the confidential sections) to everyone involved, ensure they understand it and get their feedback.
5.Trying to fit a square peg into a round hole.I know, I know, you’ve always dreamed that your son would follow in your footsteps, but a degree in ancient Greek literature may not make him best suited to running your fabrication plant.
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