Succession planning is key to ensuring your company has a smooth transition when a leader exits—without affecting profitability.
Inc. offers the following tips for effective succession planning.
- Let go. As a leader, you must build a team of people who are more intelligent, innovative and capable than you are. It is important you detach your ego from your business; a leader is not meant to be the hero of the organization, and you should let go of the belief that only you can guide the company to success.
- Start early. It is easier to manage the succession process when you are physically and mentally fit and healthy. Start thinking about your transition earlier than feels comfortable. This can help you take control of your future exit and help you ensure your company is prepared.
- Move from decision-making to mentoring. When you have identified a successor, work together to establish a clear timeline for transitioning responsibilities. Functional aspects typically are first and the easiest to hand over, but at some point, you also will need to relinquish your decision-making authority. Give yourself at least 90 days at the end of your transition where you are not directly involved in decision-making but are operating as a mentor to your successor, offering advice, guidance and support as they make decisions.
