Challenges in a succession plan
User Rating: 0 / 5
- Details
- Hits: 26170
Challenges in a succession plan
Any change is bound to affect a business entity one way or the other. Despite existing systems, no single person can run a business the same way as the other. Changing business environments call for a change in the way we do business. Therefore, successors have to be innovative and work towards matching business operations with the current market demands. There should also be a consideration to forecasting. The planner needs to understand that business does not operate in static environments but rather in places where changes take place every day. Innovations are being made, and new competitors are emerging. The business should be able to adapt to these changing environments and be able to deal with emerging competitors.
With the opening up of the global market, many businesses are finding themselves with the challenge of a widening talent gap. Succession planning therefore should take into consideration processes that will work for both the individual and the company. Succession planning remains informal in many companies thus creating huge gaps in skills and performance. That calls for a need to invest in tools and technology for talent development within a company. Companies, which will invest in this area, will be able to survive in an expanded business field. They will view globalization as an opportunity for growth rather than a threat to their existence. The changing market scenario also means that older business models cannot work effectively for the company. There is a need to sensitize workers and managers within the organization of the changing business trends. That will prepare them for succession and bring the company up to par with the current market needs. If the workers can work in these changing environments, they will be able to shield the company against the tremors brought about by change. The business will be able to stand the test of time and outdo others. One important aspect of business can maintain a competitive advantage over its rivals. If it can match up with the changing market trends and adapt to new technological innovations, it will be able to rise above the rest and create a niche for itself in the market.
Another major challenge in succession planning has to do with the fact that companies have to contend with technological innovations. These innovations are making catching up with the current market needs an uphill task. Companies need to invest in research and to adapt to current technological innovations. That should integrate into succession planning process for the company to avoid being phased out by their competitors. Planners who fail to factor in technology are setting up their business to major threats. Eventually, their opponents no matter how insignificant they may be will be able to catch up with them or even overtake them when they adopt the new technology.
A company's inability to motivate and retain key employees can also pose a major challenge in succession planning (Muhoho, 2014). That may mean that potential successors may exit the organization even before getting an opportunity to drive the mission of the company. Motivation involves proper remuneration for the job done among another thing. Sometimes, the organization may not be in a position to give its key employees the same or better rates than their competitors leading to an exodus of key employees from the company. Conducive working environment and involvement in decision making also form part of employee motivation. Employees work well when they can identify with the organization and feel part of it. If they feel like outsiders, they will be looking for a way out, and this might not be good for the operations of the business. The organization might even lose good potential successors in the process since employees will look to work in areas where they are appreciated.
Some organization may not have all the details about their employees. This limited knowledge about the employees could pose a challenge while planning for succession. Sometimes qualified persons may be left out of the succession plan. Some of these employees may be disgruntled in case someone less qualified than them is picked. The company might then end up losing good employees or even have to work with rebellion from the disgruntled employees, which might not be good for the company (Muhoho, 2014). The company should keep an up to date employees database and work towards knowing their employees well. That will make it possible to assign each employee where they are best suited and be a starting point in identifying potential successors in case one is being sought from among existing employees.
Lack of awareness especially by those in positions of leadership can be a big hindrance to succession planning. The leadership may not prepare itself adequately for succession just because it lacks the necessary information regarding succession planning. In such a case, the company may be faced with a real transition problem when the term limit of such individuals expires or in the event of their death. Some companies may have to wind up in the case of the death of their leader just because there was no succession plan in place (Muhoho, 2014).
Ineffective business practices and lack of a clear-cut vision for the business also poses a challenge to succession planning. Without a clear vision for the business, it will be difficult to put in place a succession plan, and if it is there, it may not have the survival of the business in mind (Muhoho, 2014). Best business practices are the lifeline of successful businesses. These practices include having a clear vision for the business and not only establishing a business for the sake of it. A business that follows good business practices will be able to have proper succession planning strategies and will be able to survive long in the market.