Business succession plans can help to ease the transition phase when someone must suddenly take over a role within a company. Succession plans identify job responsibilities not covered in training materials and outline the unique functions a professional performs, as well as the skills and training required to fill the role.
They also identify existing staff members as candidates who could move into leadership positions and outline the training they may require to hold those jobs. Business owners and others developing succession plans should not limit their opportunities by focusing too much on one candidate.
How many individuals should a succession plan identify for one potential future job opening?
Three or more candidates is the ideal
Personal medical challenges or a job offer at another company might mean that the main candidate highlighted in a succession plan leaves the company before a position opens. Having only one alternate candidate leaves the company with limited protection. However, when business leaders identify three or more candidates who could be capable of holding their position with training, the company has options even if one of those people leaves the company.
Regularly reviewing the succession plan is important as well, as staff within the company may change over time. Nominating new candidates can help prevent a scenario in which there are no people with these skills and training necessary to rapidly take on a now-vacant position.
Working with an attorney while creating a succession plan can help companies to avoid scenarios where the document does not serve its purpose, such as when a professional only identifies one potential successor. An attorney can help ensure that succession plans adequately address a company’s needs and conform to best practices.