Succession planning focuses on high-potential employees
Show Ownership transfer and management succession (OTMS) in a closely held construction firm is challenging in the best of times. Transition brings a tightly interwoven set of challenges that includes—but is not limited to—people, money, legacy and emotion. The last 10 years provided an ideal backdrop for succession thanks to multiple factors. Strong work backlogs, profitable work that accelerated management buyouts, an active mergers and acquisitions (M&A) market and up-and-coming leadership teams focused on building out corporate infrastructures for continued success all played a part. While the COVID-19 pandemic slowed succession plans for many and required owners to shift their energy and focus elsewhere, they are now returning to succession planning. It is crucial to invest in your high-potential emerging leaders since they will be the ones shaping the company’s future going forward. By identifying high-potential team members and developing them to take on their next roles, companies can build a consistent culture of leadership and sustain that through the succession process. These development efforts, paired with open dialogue early in the succession process, ensure E&C firms realize the benefits of quality succession planning. Here are five tips that companies can start using today to set themselves up for a successful succession process:
Building Your Best PeopleCompanies that want to improve their internal approach to high-potential development can start by making programs as transparent and visible as possible. A transparent high-potential program will attract and motivate high performers to their maximum potential. When designing a high-potential program, it is important to be specific about who you are going to develop. Ask questions like, “Do we know who the high potentials are? Do we really understand why they perform at a high level?” If this can be made clear and communicated throughout the organization, then more people will strive to elevate their performance to the level necessary to become high potentials. To maximize the potential impact of development programs and efforts, don’t overlook the power in connecting your best people across the organization. Spending time developing them together as a group creates a strong network that allows them to learn from each other and challenge each other to be better. Building these connections will drive loyalty and collaboration. Finally, the organization must build the necessary systems and processes needed for success and then drive accountability. To learn more about successful ownership transfer and succession management, join us in Marco Island, Florida, April 18-20, 2023, for our three-day course. Who does succession planning focus on?Succession planning is the process of identifying the critical positions within your organization and developing action plans for individuals to assume those positions.
Does succession planning focus on all employees?Look at your entire organization
The key to a successful succession plan is that you take a look at all of your employees and make sure you haven't missed any important person or position.
What is the purpose of succession planning?The purpose of succession planning is to make sure a company always has the right leaders in place should a change happen quickly. By failing to create an orderly plan for succession, your company may not get a second chance if it doesn't adapt immediately after a key player leaves the company or passes away.
What does succession planning include?Succession planning is the process of identifying very important positions in the organization and creating a talent pipeline, by preparing employees to fill vacancies in their organization as others retire or move on.
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