Addressing Business Succession Concerns When Assuming Leadership

Accepting a new leadership role within an organization is a major career opportunity. The experience and title that come from that position can lead to even more lucrative opportunities in the future. Many successful organizations now specifically mandate that those in executive positions and other leadership roles engage in succession planning within a set period after assuming their new role at the company.

Even without a contractual obligation to create a succession plan, doing so is in the best interest of the organization, as well as the executive in question. In the event of a personal emergency or a lucrative offer for a similar position elsewhere, they may need to make a rapid exit from their position. A succession plan can allow them to leave quickly without breaching their contract or losing any severance pay to which they may be entitled.

Additionally, succession planning helps preserve the stability of the organization by smoothing the transition from one leader to the next. The succession planning process generally involves identifying others within the organization who could be capable of fulfilling the position. It also helps identify any training or skills that may be necessary for those filling the role in the future.

Identifying potential successors can be a challenging process, especially when a new executive or manager comes to the company from outside the organization. They may need several months to observe employees and evaluate their capabilities before preparing a framework for the eventual transfer of control.

Detailing key job functions that may not be included in training materials is also a valuable aspect of business succession planning. The more detail that the plan includes regarding the recurring responsibilities of the position, the easier it is for someone else to eventually take over that role without overlooking critical job functions.

Guidance from an attorney familiar with the challenges of succession planning helps limit the possibility for transitional disruptions when a key professional within an organization leaves their position unexpectedly, whether willingly or not. Even in cases where a contract does not mandate succession planning, being proactive about protecting the future of the organization can be a savvy move for companies and those in leadership roles.

The Law Offices of Donald W. Hudspeth, P.C. in Phoenix provides insightful counsel to Arizona companies on a wide range of succession-related matters. Please call 866-696-2033 or contact us online for a consultation.