Succession Planning Presentation

SUCCESSION PLANNING By Kalindu Witharanage Reg. No. 07SKCM6087

INTRODUCTION • Three types – a. Management succession planning b. Business succession planning c. Family Business succession planning

• Process of identifying and preparing suitable employees through mentoring,training and job rotation to replace key players.

DEFINITION

“Succession planning is a process by which one or more successors are identified for key posts and career moves and/or development activities are planned for these successors”. Successors may be fairly ready to do the job or seen as having longer term potential. – By Wendy

• A succession plan clearly sets out the factors to be taken into account and the process to be followed in relation to retaining or replacing the person.

• Succession Planning involves having senior executives periodically review their top executives and those in the next lower level to determine several backups for each senior position.

BUSINESS SUCCESSION PLANNING • Business succession planning involves planning for the smooth continuation and success of a business which depends greatly on the availability of competent people. • Be it profit or non-profit organization, one of the concerns is there may be no successor to drive it once the leader or key person leaves – either by choice or by circumstances. • Without succession planning, a business that has become successful can just as easily fall.

• There are two main options available to business succession planning, which are: 1.Retention Planning: Retention of the business within the family circle; and 2.Buy-sell Planning: Selling of the establishment to other business owners or key employees or interested outsiders

Family Business Succession Planning • Due to the complexities surrounding the transfer of ownership of family businesses from one generation to another, specific resources have been developed for family business owners planning for this transition

BENEFITS • Ensuring continuity, avoidance of problems of transition which hamper both individual and organisational performance and effectiveness. • Provide an added impetus to growth of employees with high potential and good performance in the organization. • It facilitates in building teams and optimizing their performance by emphasizing on strengths and weaknesses of the team members.

• It ensures a direction to HR systems of Training & Development and Talent management. • It facilitates in optimizing performance across the organization.

CONCLUSION • Succession planning is a part of company’s annual strategic plan. • Indian corporations have realized the importance of succession planning for the top position. • It requires continuous planning by HR managers and the support of the top management.

• No succession planning can be complete without involving the women in the family and setting up specific structures to resolve their differences.