Management succession plan template

These include:. The first component of succession planning is the positions that need to be filled. This includes leadership positions, such as the CEO, and highly-skilled roles, like the lead accountant. The incumbent is the person who currently fills the position. When forming a succession plan, consider whether or not the incumbent is high-risk. For example, an older incumbent with known health issues necessitates a more accelerated succession plan than someone who is younger and physically fit.

The succession candidates include employees who are qualified and willing to fill the necessary roles. Most succession plans maintain two to three candidates for each role. That way, if any of them decide to leave the company or relocate, there is no need for the process to restart.

Instead, the company can simply move down the list to the next candidate. Succession plans should include a rating system that measures how prepared a candidate is to step into a role. For example, a promising but inexperienced candidate with the potential for success might be given a readiness rating of five. An older employee who has been with the company for several years and already held multiple leadership positions might get a score of eight.

Another key component is the succession timeline. Retirement succession plans are usually executed gradually over a long period of time and often focus on a predetermined date, set several years in the future. Related: How to Start a Mentor Program. Here are some steps you can take to write succession plans that help you navigate leadership transitions efficiently:. This could see other senior members of staff take on extra responsibilities while a replacement is sought.

Many small and medium businesses do not have a succession plan. Of those that do, some of them have only informal plans. This can be a risk for your business as there could be unforeseen incidents that could occur such as death. It is worth creating a formal, written succession plan that is developed and easily accessible. When an upcoming promotion, retirement, or departure is approaching you will have the next generation of leaders ready to go.

Thanks to your succession plan the replacement will already have the skills required to take over the role. The plan helps to define clear progression routes through the company so managers can share appropriate training and information with junior staff. Employees report higher job satisfaction when there is a succession plan at their company.

This is because it helps to define routes to progressions and lowers job insecurity. A succession plan can help employees understand what they need to do to achieve a promotion. It can help with goal-setting and giving employees a sense of direction at work. Succession planning can help your managers to track employee progress through performance reviews. Internal opportunities can also be quickly filled with knowledgeable employees who have been upskilled and crossed trained.

Whenever a high-ranking postholder leaves the organization it can leave shareholders feeling uneasy. In some cases, they may look to sell their shares. A good succession plan can help keep investors on board. This will give the shareholders confidence in the company and the new postholder. You can attract talented employees who will stay with you for a long time. This helps them to have a strong understanding of the businesses, morals, and expectations. Employees are more likely to stick around for the long term if there are defined advancement opportunities.

Small and family businesses may only need a limited plan that outlines succession for a single person. Larger corporations may need a comprehensive document that starts with the hiring process and works its way through the ranks and details different leadership positions.

A small business might only need to find a replacement for ownership. Medium and large businesses may only want to consider the succession plan for their C-suite of employees. It may also be the case you want a succession plan that covers every eventuality from store manager to distribution to CEO.

The size and type of your business can help to inform some of your decisions but ultimately every business will be different. Second, you might have some specific specialists that are unique to the industry or your business, e. The objective is to figure out how crucial the position is. If the company would be severely affected by a vacated position then this is one that should be considered within your succession plan. You will also need to understand what specific attributes are needed for the role.

That way you can build your training and development around nurturing those key skills. Perhaps the most crucial stage is finding the employees that might be suited to a tougher challenge. Candidates could be sidestepped in the role or there could be other promising candidates in the business. You may wish to make hiring a part of the plan and therefore can use interviews to vet potential recruits for career prospects.

Your top choice maybe someone who is happy in their current role and not looking to change. This is something that can be gauged during annual reviews or in meetings about their professional goals.

Explain that nothing is guaranteed as there are plenty of moving factors to consider. This includes the current postholder, the company, and the candidates. However, you can gauge their interest and it may help to encourage high-performing individuals to remain loyal to the company. Leadership development is worth investing in particularly for employees you have identified for succession into key roles. There are a variety of ways to develop potential successors and help them to develop leadership skills.

You can create a leadership development plan to ensure candidates have the right skills and are a good fit for leading positions. Employees being groomed for leadership roles can be developed in several ways. You need to test your employees to make sure they can meet the demands of the increased responsibilities. Connect the candidates with business leaders in your company. They can help to develop the skills of succession candidates and even share knowledge that might not be immediately obvious.

You can send prospects on courses to help develop their skills. These could be in-house courses or ones run through independent third parties. Task forces and project management is a great way to test your candidates. This will give them the opportunity to lead a team and test how well they cope under pressure. You will also want to give them the opportunity to learn and develop the necessary skills required to do the specific job. There should be ample opportunity to give your succession plan a trial run with the candidates you are considering.

For example, if the postholder is away on holiday or off sick for an extended period you can use this as an opportunity to try someone in the role. The benefit here is twofold, the candidate will get a feel for the position and appreciate the opportunity.

Nonprofit Succession Plan Template. Board Succession Plan Template. Family Business Succession Plan Template. Law Practice Succession Planning Template. Talent Pool Development Template. How to Create a Succession Planning Template Once you have selected a template that works well with your business or organizational needs, you can customize it to create a personalized succession plan. Here are some of the elements commonly included in a succession plan: Position: This may be one or multiple positions, usually leadership positions, that you will need to fill in the case of a planned or unexpected absence.

The plan can provide a detailed look at the key functions of and competencies required for this position. Incumbent: This refers to the person currently in the key role. Candidates: This is a list of potential employees or others such as candidates for board membership who have the skills to move into key roles. Readiness Rating: Evaluate candidates to determine current competency levels and gaps that need to be filled. A rating is a quick way to indicate how ready a candidate is to move into the role, and may be based on a range of factors, including performance ratings, specific skills, willingness and ability to relocate, and other assessments.

Development Needs and Action Plan: Whatever competencies a candidate lacks will need to be developed. A specific plan shows training or other actions that the organization will take to manage this development and track its progress. Organizational Chart: Some succession plans include a visual description of key roles and may include photos of the incumbent and candidates in addition to names and other details.

The Benefits of Succession Planning Succession planning can support businesses and employees by increasing staff retention, improving performance, and boosting employee confidence. The Succession Planning Process Succession planning has at least three stages: identifying future business challenges and key roles, evaluating and selecting employees based on critical competencies, and preparing those employees to fill future positions.

Defining challenges and goals for the future provides information about what roles you will need moving forward. Identifying the negative effects on an organization of the absence of key positions helps to clarify what competencies, skills, and knowledge are critical for business continuity. Strategizing is also an opportunity to engage senior leaders in the process and help staff understand their roles. This pdf format file guides the board in the process. It takes a sequence of activities to determine the successor of the board.

The document professionally outlines the event to find suitable candidates. The document also suggests that the final decision should be personal for the board.

The above-mentioned template is one such file that would be of great help to such organizations, as it helps create a plan for the succession needed. This file gives a series of questions to be filled out.

The response of the fill out will give the judgment on the succession. The questions are mainly the key factors associated with succession planning. For nonprofit organizations, this document will help bring peace in a time of turmoil.

This document suggests planning for the succession of the executive director.