A company is not one man show. It is successful with the help of human resource to make the company work and productive. The spinal cord of any company is its top management personnel. The CEO CFO, top managers, banker’s manager, and other important people of the company decides the future of the company.

But what will happen if any key top management or personnel needs to be replaced?

Nowadays, the concept of succession planning is quite a rave. Many companies have sorted the succession planning as their core responsibilities. It helps them to identify the potential candidates for critical positions, their role, their performance, their area of expertise, and many more.

What is Succession Planning?

Succession planning is one of the important jobs of the company management to identify the critical positions in the company and potential skillful people to do the job in the future. It is the talent search in the company to do the job done in times of need. It requires to study the performance and skill set of the candidate and identify their potential for the job.

Some companies have never thought about succession planning. But it is a necessary exercise to keep the company running without any hindrance.

Need for Succession Planning

We have heard stories about the companies where key management personnel is replaced or leave. Changes happen in every company. But there is a need to keep the company running, and the company needs to keep potential candidates in mind all the time. There is management personnel who fell ill or die leading changes in the company board. In such scenarios, successful succession planning helps.

Since the concept of succession planning is still new, many conventional CEOs and business owners have sorted through the plan. On the other hand, succession planning idea. They take it offensively and fear that the management is replacing them. Hence, it is essential that the company plan, execute and draw a conclusion without further hampering the company reputation and hurting any personnel.

Objectives of Succession Planning

The core management of the company does the succession planning exercise. The clarity of the objective of carrying out the job of succession planning is necessary. The well-established practices of the company around the globe have the following critical goals for succession planning:

• Identify the key positions that require succession planning.
• Identify the potential candidates for replacement in the key management positions in the company.
• Engage the management in the process to train the candidates for future responsibility.
• Make a comprehensive study of potential candidates skill set and performance.
• Study the candidate for a long and specific time frame.
• Importance should be given to the candidates with high-performance rate and not age.

The companies who are facing problems with the succession planning must obtain outside help from the professionals as they are unbiased and practical in their approach. The process and practices of succession planning are relatively simple but require extensive planning and business knowledge.