Friday, March 15, 2019

Succession Planning Is Not Just for Retirement

Charlie Whiting, Race Director of Fédération Internationale de l'Automobile (FIA), the governing body of many auto racing events, suddenly died on March 14, 2019 only 66 years old. Mr. Whiting had been involved in motor racing just about as far back as anyone can remember. Although there had been discussions about what the world would look like after Charlie Whiting, nobody had expected it would come this soon and the organization was not prepared for it.

Charlie Whiting Long Term Succession Plan

That is also the case for the vast majority of small and medium size companies in America today. Especially small companies rely on one person to hold everything together. That is not good when disaster strikes and he suddenly goes missing. The result could be devastating for his family and employees. Learn about succession planning and then do something about it.

It is possible to buy insurance for when disaster strikes, but not for when a trusted employee goes to work for a competitor. There is no substitute for a comprehensive succession plan.

Worker cooperatives are less likely to have this problem as they tend to spread the tasks on more shoulders. Because they are owners, they tend to stay longer and are more committed than wage earners. Worker cooperatives are often founded on the idea that we can do more together than we can individually, so business management for them naturally becomes a team effort.

Effective Succession Planning: Ensuring Leadership Continuity and Building Talent from Within

Succession planning is not the same as exit planning. Succession planning is part of an exit plan, but people leave all the time for all kinds of reason. You really need to have a way to respond when they do at all times. You may not get the notice you expected. Disaster could strike at any time. Therefore succession planning should also be part of a comprehensive disaster plan.

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