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How to Train for Succession

by Contributing Writer

Overview

Businesses that intend to survive over the long run need to plan for succession. Often in family owned businesses, a family member, such as a son or daughter, is the natural successor to the owner. As children, they are groomed to run the business as the father discusses the business' concerns nightly at the dinner table. Other companies must seek out successors from talented candidates within the ranks. The job of preparing those candidates to ably fill the shoes of the president of a company is one that should be taken very seriously.
Training for Succession

Step 1

Identify candidates who might be appropriate for assuming the helm of a company early on as employees come and go even those who have been groomed for greatness. Understand there is no guarantee that a competent employee will want to wait around to inherit the top job. Make sure you have at least two to three potential hopefuls to ensure there is at least one available to succeed when the time comes.
Step 2

Provide succession candidates opportunities to be acquainted with all the workings of the company by ensuring they do a tour of employment in each department. These working tours should last at least six months so candidates have a thorough understanding of the challenges and functions critical to the company's success.
Step 3

Ensure exposure of succession candidates throughout the industry and within the company. Tell board members and upper management, either formally or by the candidates' visibility within the company, who is being groomed for succession. Strive to make sure there should be no surprises when a particular candidate is elected to succeed and certainly no mutinies among the rank and file.
Step 4

Give candidates significant profit and loss responsibilities within the company. Understand, too, that while favoritism will invariably play a role in choosing the actual successor, all candidates should be given an opportunity to demonstrate abilities to grow the company. Each candidate should manage departments or divisions and have successes--quantified in revenue generated--demonstrated over a period of time.
Step 5

Provide the highest-ranked successor candidate the opportunity to shadow the leader or work directly with her on company projects that are profit-driven and philanthropic in nature. Understand that a successor needs to be able to lead the company in all facets of its corporate role. Know, too, that as the new face of the company, the successor must personify the best of the company in works and deeds.