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Infinite, sustainable growth ideas and examples for strategic thinking executives every Sunday

THE BLOG

Innovate Africa With Dotun Adeoye Every Sunday

Infinite, sustainable growth ideas and examples for strategic thinking executives every Sunday

Succession Plan Dotun Adeoye

The benefits of having a clear and deliberate succession plan

As an entrepreneur, you’ve worked hard to build your company and create a loyal customer base. You’re proud of what you’ve made and want your company to thrive for generations. However, as time goes on, there may come a time when you decide it’s time for someone else—or multiple people—to take over leadership of the business. A clearly defined succession plan is critical to ensuring that the transition occurs smoothly without disrupting or disrupting your core business goals.

Avoid an unexpected crisis.

When a business has an unplanned succession crisis, it can have far-reaching consequences.

An unexpected death, an illness in the family, or a sudden departure of the next generation can leave you scrambling to find someone who can step in and fill their shoes. The problem is that most people don’t know what they want to do with their lives until they’re doing it. So if your organisation doesn’t have a clear succession plan, you could scramble for years while trying to figure out how your business will continue operating without leadership.

You are strengthening and solidifying the company culture.

Your organisation’s culture is one of the essential aspects when planning succession. It’s also something that you should consider with every new hire and promotion. However, it’s necessary to have a clear plan before you go down or if someone else needs to take over for you.

If your business does not have a strong company culture, then this will be even more challenging for those coming in after you leave.

Your culture can be built on several different things:

  • Values and mission statement (what do we stand for?)
  • Company culture (how do we work together?)
  • Workplace environment (how do we treat each other?)

To keep these values consistent across all levels of leadership and staff, it’s essential that there is 1) consistency between leaders about how things are done; 2) consistency between leaders about what success looks like; 3) consistency between leaders about how they communicate goals/expectations/progress, so everyone knows where they stand; 4) open communication channels at all levels so people feel comfortable expressing themselves and getting feedback from others throughout the organisation so their ideas can be heard by those who need them most often; 5) opportunities for personal growth within individuals’ roles as well as outside their role responsibilities by encouraging employees who want more responsibilities or want more freedom within their current role(s).

It ensures a smooth transition for the next leader.

One of the essential benefits of having a succession plan is that it allows you to ensure a smooth transition for the next leader. For example, if you are planning to retire soon and your business has grown into an enterprise, someone must be willing and able to take over when you are gone. An excellent way to find this person is by using a succession plan.

Another benefit of having a succession plan is that it can help protect against potential lawsuits from employees who feel they were overlooked for leadership roles in favour of someone who didn’t deserve them as much or at all. When there’s no succession plan in place, and someone gets promoted over others who have been with the company longer than they have, it could lead other employees to feel resentment towards them which can cause problems down the road like lawsuits filed by those who believe their rights were violated due lack transparency throughout promotion process.

You give the next generation time to learn and grow with the company.

Delivering the next generation time to learn and grow with the company is an integral part of succession planning. When potential successors are thrown into leadership roles before they’re ready, it can be a significant source of stress for everyone involved. Let them work with you for a few years and prove themselves, valuable contributors before moving them into leadership positions.

It would help if you also allowed them to learn from their mistakes or successes so that they don’t repeat the same mistakes repeatedly, which helps build trust between you and your successor. You want your successor to know that he can make mistakes without being penalised for it because he was given guidance on how to handle certain situations in the past (for example: if he makes an error in judgement at work).

You are retaining valuable employees and customers.

There are several reasons why retaining employees and customers is essential. Still, one of the most important is that it allows you to invest in their development for future leadership roles. That’s because when you build up your workforce with new hires who have been mentored by those already on staff, you’re able to keep your company’s culture intact and see even more growth as these individuals eventually take on more prominent roles.

This win-win situation works exceptionally well if their predecessors have trained the younger generation of leaders to think strategically about keeping the business going strong for years to come—and then do it! In addition, this type of succession planning keeps everyone involved in ensuring growth at all organisational levels, giving everyone involved a vested interest in its success.

You are enabling founders to exit or retire sooner.

When you have a succession plan, nothing is holding back your founder from retiring or exiting when they’re ready. However, they know there’s someone on their team who can take over and keep the business going strong. This means that the next generation of leaders has been groomed for years and is ready to step into the role with confidence—and without any doubts about whether or not they’re up to the job.

A clear succession plan ensures that everyone knows what skills and experience are needed for each role within an organisation so that new hires fit into their roles seamlessly; if this isn’t done correctly, then things like culture and morale will suffer significantly because people don’t feel like one another’s peers or teammates anymore.

Ensuring that new leaders have all the right tools at their disposal before taking over an existing company is crucial because it gives them time (and space) during training sessions where they can ask questions freely without worrying about making mistakes while also getting feedback from mentors who already know what questions may arise later down the road.

Attracting top talent from outside sources: having more choices available increases the likelihood of success since fewer applicants are vying for the same positions, which means candidates won’t go elsewhere due to a lack of interest/excitement level.

Providing a strategy for investors should there be a change in management or if the firm is sold.

As a founder, you have the opportunity to create a legacy that is not only meaningful but also lasting. The most effective way to do this is by creating a business model for future generations of leaders within your company. This requires you to think about what your company stands for and how you want it to be perceived by customers and employees alike. It would help if you also considered what message your successors wish to convey when they speak with their clients or customers after taking over from you as CEO or COO (Chief Operating Officer).

They provide an exit strategy for founders while maintaining their company’s core culture and business model.

Succession planning is an essential part of a company’s lifecycle. It can help ensure that your business continues on a positive trajectory and avoids becoming stagnant, which could lead to problems. Without succession planning, it’s easy for companies to become complacent about leaving leadership positions open for too long, potentially resulting in unnecessary internal strife or even bankruptcy.

A clear succession plan is essential for any company that wants to ensure its longevity and success in the long-term future. A succession plan should be created before there’s any need for it; otherwise, when you do have someone leave or retire from your organisation unexpectedly, they’ll be left without anyone prepared to step up into leadership roles immediately afterwards—and this could cause severe problems within your organisation as well as harm its reputation with customers or clients outside of work hours (or even worse).

You are passing on your knowledge to the next generation of leaders at your company.

There are three main reasons you should put together a succession plan. First, you want to be sure that the person taking over for you can run the business. Second, you want to be sure that your successor can take over the company. Third, and most importantly, with a succession plan in place, you can help ensure that whoever takes over from you as CEO learns from your experience and best practices as an owner/manager of your company.

The process of drafting such plans can seem daunting at first glance. Still, it can be pretty simple if taken one step at a time:

  • Determine who will ensure that all of these tasks are completed successfully (including finding an appropriate successor).
  • Set aside time on an ongoing basis so that everyone involved has access to feedback throughout this process (this includes owners/shareholders).

Ensuring you have chosen someone who can successfully take over your business when you are finally ready to let go makes all the difference.

Before you can enjoy the benefits of a succession plan, you need to make sure that you have chosen someone who can successfully take over your business when you are finally ready to let go. Choosing the right person for the job is essential because there’s no point in working hard if your successor can’t continue to build on what you’ve created. But, of course, it would help if you were also sure they are good at what they do and will continue your company’s success.

Making this decision about who will run things after you leave isn’t easy — especially if you’ve built up your companies from scratch or worked hard on them for many years — but it’s essential if you want your businesses to continue thriving once you’re gone.

Bottom Line

Whatever industry you’re in, succession planning is a necessary process that can make or break your company. When it comes time to choose who will take over, don’t leave things to chance – work with an experienced professional who can help ensure a smooth transition and continued success for your business. Suppose you’re looking for someone to help with your succession planning needs; get in touch. I’d be more than happy to discuss how we can help ensure that your company continues to thrive long into the future.

Who am I?

I am Dotun Adeoye, a Business Growth Strategist & Author of the 5 Pillars of Business Growth.

I’ve built up my experience via serial entrepreneurship, consulting leadership roles in business growth, business development and product innovation in large companies worldwide in the last 30 years.

Today, I consult with large businesses on how to sustainably grow their businesses, sustain infinite growth, and ensure business continuity irrespective of the business climate.

Hire Dotun Adeoye to Speak Virtually or In – Person at your company’s event to cover this or other topics. You can also get in touch via +44 203 097 1718 or dotun at dotunadeoye.com.


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Innovate Africa

With Dotun Adeoye

Every Sunday

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 Teaching business leaders how to grow their businesses & leave their legacy.