Why Every Workplace Needs a Succession Plan

Have you ever stopped to ask: Does our workplace have a succession plan? Or even more fundamentally, What is a succession plan, and why does it matter?

Understanding Succession Planning

A succession plan is a strategy for identifying and developing future leaders at all levels of an organization. It ensures that when people leave, retire, or transition into new roles, the business continues to run smoothly. However, in many workplaces, this essential planning is overlooked. The consequences can be significant.

In my experience, I have worked in organizations with very flat structures. There were layers of management and a reliance on external contractors, but a noticeable shortage of mid-level and entry-level staff. It was a classic case of 'too many chiefs and not enough Indians'—a very old saying meaning too many bosses and not enough people to do the actual work.

The Consequences of Ignoring Succession Planning

The result? Chaos.

Without clear career progression opportunities, staff morale dropped, and turnover skyrocketed. Workloads became unmanageable. When restructures occurred—as they often do—existing roles were simply stretched further. More duties were added to job descriptions, but those who left were not replaced.

This kind of approach isn't sustainable. It burns out employees, drains productivity, and leaves organizations vulnerable when key people leave.

The Benefits of a Well-Thought-Out Succession Plan

A well-thought-out succession plan offers numerous benefits. It supports a healthier workplace culture, establishes clearer career development pathways, and strengthens team stability. It also helps retain great people because when employees can see a future within the company, they are more likely to stay and grow with it. This is a crucial aspect of good workplace culture.

How to Create an Effective Succession Plan

Creating an effective succession plan requires several steps:

1. Identify Key Positions:

   Understand which roles are critical to your organization's success. This includes not only top management but also vital mid-level and entry-level positions.

   
   

2. Assess Internal Talent:

   Evaluate your current employees to identify potential future leaders. Assess their skills, readiness, and aspirations for advancement.

   
   

3. Develop Talent:

   Invest in training and development programs that prepare your employees for these key roles. This could include mentorship programs, leadership training, and opportunities for cross-functional experience.

   
   

4. Document Your Plan:

   Clearly outline the succession plan and ensure it is accessible to the leadership team. Regularly review and update the plan as necessary.

   
   

5. Communicate:

   Keep communication open. Ensure employees are aware of succession planning efforts and how they can grow within the organization.

   
   

6. Evaluate and Adjust:

   Monitor the effectiveness of your succession plan over time. Make adjustments based on changes within the organization or workforce.

   
   

Recognizing the Importance of Succession Planning

So, what’s the succession plan in your workplace? If you don’t know, it might be time to start asking. Organizations without a succession plan risk disruption and instability when key personnel leave.

Need help creating or reviewing your workplace’s succession plan? I support businesses in building practical, people-focused strategies that strengthen teams and future-proof leadership. Reach out to me at www.juliaperryman.com.au.

With a strong succession plan, you can foster a resilient organization ready to face future challenges. Focus on developing internal talent, and you'll not only safeguard your organization's future but also enhance employee satisfaction and loyalty.