Succession planning is a strategy for passing on leadership roles — often the ownership of a company — to an employee or group of employees. Also known as “replacement planning,” it ensures that businesses continue to run smoothly after a company’s most important people move on to new opportunities, retire, or pass away. Succession planning can also provide a liquidity event enabling the transfer of ownership in a going concern to rising employees. Succession planning evaluates each leader’s skills, identifying potential replacements both within and outside the company. In the case of internal replacements, training those employees so that they’re prepared to take over. Succession planning is not a one-time event. Succession plans should be reevaluated and potentially updated each year or as changes in the company dictate. In large corporations, the board of directors will typically oversee succession planning. For small businesses and family-owned companies, succession planning often means training the next generation to take over the business. A larger business might groom mid-level employees to one day take over higher-level positions. Succession planning starts with proper hiring practices with the goal of choosing candidates that are capable of rising through the ranks as time goes on. Training includes the development of skills, company knowledge, and certifications. The training might include having employees cross-train and shadow various positions or jobs in all the major departments. With succession planning, leadership and employees are better able to share company values and vision. In a business partnership, one method of succession planning has each partner purchase a life insurance policy that names the other partner as the beneficiary. That way, if a partner dies at a time when the surviving partner would not otherwise have enough cash to buy the deceased partner’s ownership share, the life insurance proceeds will make that purchase possible.
The first slide of the template is presented as a career ladder. You can use this slide when preparing a Retirement Strategy Report. The slide will primarily be useful to the personnel department. The second slide can be used by business coaches when preparing employee development programs. The next slide gives you an opportunity to present the audience with the basic tips for developing Succession planning. The last slide is presented in the form of a graph that has coordinate axes – potential and performance. This slide gives you the opportunity to create a match map for your employees for each of the categories. Once mapped, you can identify weaknesses in your Succession planning and design measures to improve performance.
The Succession planning template follows the latest design trends and comes in vibrant colors. You can also change the color and font sizes so that this template can be used in your other presentations. All HR leaders should have this template. Also, this template will be useful for heads of companies and heads of various departments.