In business, as in life, there is generally a hierarchy and structure for how things run. Leaders are identified. Departments are established. Managers are appointed. Processes are set. And, if all is as it should be, all of the cogs fit together and run like a well-oiled machine. The best organizations even create redundancies to ensure that when key personnel are out sick or on vacation for a few days, there are other knowledgeable individuals who can step in temporarily to ensure that operations continue smoothly.
However, many companies fall short of actually creating a full Succession Plan in case a vital cog in the machinery breaks and must be replaced. Most organizations do not have any preparations in place that will go into effect if a vital member of the team is suddenly gone either by choice or chance. For example, Business Week magazine featured an article questioning why Herb Kelleher, CEO of Southwest Airlines, had not designated and groomed a successor. This exposed a weakness that exists in many companies’ strategic thinking. Indeed, many companies lack ‘bench strength’ or sufficient ‘ready now candidates’ to replace planned and unplanned losses of key leaders and staff. As a result, the future continuity and performance of the business is at risk. While it may seem grim and cold, a Succession Plan is actually one of the most responsible and considerate things any business can do for the good of the company. Here’s how. Continue reading