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The following article was published in our article directory on November 19, 2013.
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Article Category: Business Management
Author Name: Wayne Messick
What are the advantages of succession planning? The succession planning process may include a number of different steps. Developing a plan for the replacement of key personnel is typically a big part of the process. Much depends on the size of the business.
Small Independently Owned Businesses
A small business may be a sole proprietorship or a partnership. For a sole proprietor or single partner, the recommendation is to develop an exit plan. Exit refers to the time when the proprietor or partner will cease to participate in the daily management of the business. He or she may stay on as an advisor for an unlimited amount of time.
A successor must at some point be chosen; someone to take over the daily management of the business operations. In some cases, the successor is a family member. This is often the case with sole proprietorships.
In a partnership, a decision about whether the partner will be replaced needs to be made. Sometimes, it is possible for the other partner or partners to take over the exiting partner's responsibility.
If a partner is to be replaced, the remaining partner or partners should do basically the same thing. Identify someone, possibly an employee of the partnership, who can take the exiting partner's place.
Small, Mid-Size and Large Enterprises
In a small or mid-size enterprise and large enterprises, key personnel need to be identified by the stakeholders. In these larger businesses, the CEO, president and vice-presidents are not the only key personnel. Department heads and team leaders are examples of other key personnel. Depending on the type of business, there could be many others.
The succession planning process gets a little more complicated as the business gets larger. Replacements may need to be recruited, hired, trained and exposed to situations that actually provide the necessary experience to replace the key personnel.
What is succession planning? It is really any process that a company uses to ensure that the business can continue to function and grow as the years go by.
For a sole proprietor or single partner, the recommendation is to develop an exit plan. Exit refers to the time when the proprietor or partner will cease to participate in the daily management of the business. If a partner is to be replaced, the remaining partner or partners should do basically the same thing. Identify someone, possibly an employee of the partnership, who can take the exiting partner's place.
The succession planning process gets a little more complicated as the business gets larger.
Keywords: advantages of succession planning, family business succession planning, management succession planning, what is succession planning, family business strategies, succession planning process, planning for succession, small business strategies, business development strategies
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