View the you-tube video below on succession planning. Relate the situation to a family owned business and discuss the issues with succession planning.
Post your response. Post your response. Your main response should be a minimum of 150 words and no more than 250 words. You will also need to respond on at least two classmate's response.
Why Succession Planning is essential: The Case of the Runaway Talent
YouTube URL: Why Succession Planning is essential: The Case of the Runaway Talent(youtube)
Response 1
Succession planning is a process of preparing a structural plan to protect a company against the ill effects of staff turnover. The unexpected and unplanned exit of a business can have disastrous effect on their business. With a family owned business one of the biggest reasons to create a succession plan is to avoid ambiguity during the succession. Ambiguity increase risk and risk opens the door to all kinds of problems.
They procrastinate, this is probably the biggest problem people have when they approach succession planning in their business. Some of the family owned business lack strategy, they might have a way they approach their daily to do list, they have to start with a goal to create value for their business.
Thinking strategically properly understand succession planning for the long haul, think long term, which small businesses don't usually do. Most family owned do not have an approach to valuation, they should be using more than one method for a full picture of their business's value. Valuation changes as the business changes, whether growth, profitability, sustainability or even transferability.
Response 2
The succession planning is one of the most crucial aspects of business as it maintains the continuity in the talent pipeline for key leadership roles in the organization.
As in the video the decisions taken randomly without proper, rational and evidence based succession planning often results in disaster while succession planned out will lead to success.
For family owned business, the succession planning helps the youngsters to take the responsiblities in a gradual manner from the elder members who approach retirement. It eliminates the chances of hazard from taken decisions in event of sudden retirement, disability or death of a senior member.
These things can result in up roar of business and other potential fall outs of situations that may impact the business adversely. Technology enabled decision making tools not only help to identifry, retain and nurture best talent, but also ensure that the company has the best people aboard the team.