Have you been in a family where one or both parents pass away without a will? It may be fine if neither own a single thing. However, if they owned a home, property, jewelry, stocks, antiques, etc., look out! Initially, the government gets first dibs, then attorneys will take their shares, debtors will be standing in line, etc. Needless to say, all chaos breaks loose! Of course, if they have children (under age/non-adults), they are at the mercy of the court system.
In a business there are similarities. If the business owner/President/employer has no Succession Plan, a legally recorded document, the government can decide what happens to the business, facilities, finances, materials, and all property, etc. The employees can be left in limbo for an undetermined amount of time. No jobs, no work, no paychecks, etc., until the courts decide how to disperse it all.
Today many companies are experiencing senior execs and business leaders, who are choosing to give little to no notice when retiring. Sometimes it may be due to health issues, or a spouse's health, or just burned out and ready to walk. In some of these cases, if a company has no Succession Plan, they have to hustle to locate a qualified candidate to fill the position. This can cause decisions or plans being delayed, among other hurdles.
There is also the scenario where the business owner/employer has a sudden, unexpected catastrophe (sudden serious illness, accident, or even death), which leaves the business with no chosen leader. Again, the company is left in jeopardy.
A Succession Plan takes a fair amount of time to prepare and implement. It can't be done at the snap of one's fingers. Therefore, the owner/President along with the senior HR executive and CFO or accountant are key players in developing a sound and effective Succession Plan. The Key Execs should also be involved in reviewing what areas/positions to include and what information is needed to make the best decisions.
The Senior HR usually coordinates the Succession Planning process, though it is always recommended to have an impartial outside HR professional to help facilitate the process. This also reduces emotions. One very helpful program to have in place is a Talent Management Process. This is needed in confirming what skills, education, experiences, etc. is needed for each critical position.
If you or your company/organization does NOT have a Succession Plan, you are encouraged to consider retaining an HR expert in transitions, as well as a credible business attorney. Compass Career Management is pulling together a free Forum for employers/owners to educate them on important aspects and components of this Succession process. The owners may want to have his/her HR accompany them to this Forum. We are partnering with a local law firm for this Forum. If interested, contact Robyn Crigger at 704-849-2500. Don't leave yourself or your employees in jeopardy. Do NOT put this off.
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