There are three kinds of succession planning activities that will help keep you and your organization safe.
- Key position succession planning – There are two divergent mistakes business leaders make when it comes to planning what to do when a key position becomes vacant. Some assume it cannot be done well. Others think it can be done quickly and at the last minute. Learn what you can do to prepare for the inevitable, namely, key people leaving your organization. Planning what to do with key positions before you need it is essential.
- Back up planning – Helps fill the vacancy left by an employee in the short run but beware – it’s not an effective long-term solution. Read more about the pros and cons of backup planning.
- Business entity planning – This is what most of us think of when we hear the term ‘succession planning’. It involves the critical work a business owner does with his/her attorneys and financial advisors to protect the value of a business for either sale and/owner transition purposes.
All three are necessary but have different benefits. And, each has a time and place in which it should be used.