Why is Succession Planning important?
In the world of business and management, succession planning is basically the organized process of recognizing, assessing, and training employees that are capable of filling-in important managerial and executive roles within the company.
It is viewed to be important as it ensures smooth changeover of business responsibilities from incumbent company officers to their succeeding competent personnel thus preventing the company from falling apart especially when key positions are needed to be replaced.
Succession planning is not only beneficial to businesses, it also do good to the company’s workforce as it develop skills, character, and self-esteem, in addition to motivating capable employees as they are being taught of becoming the future leaders of the company. It is an integral part of a business as it helps create a clear path to where the industry should go despite the changes in the market trend through future planning. It equips potential leaders of all the skills and know-how that they needed in order to guarantee effective company management even when faced with new challenges.
Succession planning works in the same way of any kind of planning where in the benefits can only be felt in the future. Aside from time difference, a lot of effort is needed in order to make it effective and these are the reasons why only few companies adopt it.
However, business organizations who adopt the practice of succession planningÃ¢â‚¬Â are proven to be a step ahead of their competitors. An example of a company that has been distinguished in implementing succession planning is General Electric under the supervision of Jack Welch. In 1991, Jack Welch said that from now on, choosing my successor is the most important decision I’ll make. It occupies a considerable amount of thought almost every day.Ã¢â‚¬Â
Other companies who are known for succession planning and executive talent development practices are Honeywell, Marriot, Pepsi, Microsoft, Proctor and Gamble, as well as Pepsi.