Why You Need a Succession Plan
Succession planning is a proactive approach which mitigates the risks associated with expected and unexpected circumstances, such as a promotion or a long-term absence. It also allows our businesses to develop emerging leadership and align them with long-term strategic goals, a must when organizations are in need of consistency in the ever-evolving world of automotive technology.
At Volaris Automotive, ensuring the longevity and stability of our businesses is paramount. A key strategy for achieving this is succession planning, a process of identifying and developing future leaders to maintain continuity and consistency during periods of transition.
Beyond safeguarding business operations, succession planning offers a host of less obvious benefits that can significantly impact both the company and its people.
Succession Planning for Business Continuity
The primary purpose of succession planning is to ensure that, regardless of the circumstances, critical roles can be filled with minimal disruption to operations. These roles often include leadership positions or “mission-critical” roles, such as infrastructure architects, where the absence of a skilled professional can have significant ripple effects.
Succession planning is far more than a handoff of responsibilities. It involves months, even years, of preparation to equip a successor with the knowledge, skills, and insight needed to seamlessly step into the role. This knowledge transfer is not limited to technical expertise—it encompasses mentorship and exposure to broader business practices, fostering a well-rounded understanding of the organization. Through this process, successors are empowered to carry forward the company’s vision while maintaining operational stability.
Overcoming Hesitation in Succession Planning
Reluctance to succession planning is common, often stemming from misconceptions about its purpose. A key concern is that succession planning is perceived as finding replacements rather than creating growth opportunities. In reality, it’s about preparing employees for advancement while also providing the business with the benefit of continuity and security.
Promising employees are sometimes retained in their current roles due to their indispensability, which ironically stunts their growth. A well-executed succession plan mitigates this concern by building capacity in their successors, enabling these employees to move forward without leaving gaps in the organization. In fact, they themselves may be leaving their current position because of their own succession plan!
Succession planning also provides a safety net for unforeseen circumstances. When a key employee takes a leave of absence, whether for medical reasons, family emergencies, or a well-earned vacation, their responsibilities don’t pause. Without a qualified individual to step in, the business can face challenges such as delayed projects, unaddressed issues, or even financial loss. For the employee on leave, they can disconnect during their absence to fully recover and return to work without worry of trouble awaiting them.
Enhancing Employee Retention
The departure of an exceptional employee can disrupt operations, lead to knowledge loss, and necessitate a time-consuming recruitment process. Studies show that succession planning correlates with higher employee retention, as it provides a clear career path, increasing job satisfaction and loyalty.
Employees who see a future within the organization feel acknowledged and valued for their contributions. This recognition fosters engagement, commitment, and alignment with the company’s goals. However, the benefits of succession planning only materialize with consistent action. A plan must go beyond discussion—it must be actively implemented to have a meaningful impact.
Addressing Gaps in Succession Planning
Occasionally, a manager may face the challenge of not having a suitable successor for their role. In such cases, a temporary “back stop” solution can be employed, where another employee steps into the role while continuing their existing responsibilities until a new hire is brought in. This is sometimes known as the “Who can keep the lights on?” approach.
This approach is a last resort, as it disrupts workflows and places undue strain on the individual and the organization. To avoid this scenario, succession planning should begin early in an employee’s tenure. Identifying potential leaders and creating career development plans reduces the risk of disruption and ensures the business remains resilient. Delays in succession planning increase the risk of fragmented knowledge and overburdened managers, which can lead to burnout.
If possible, each key role should have at least two potential successors. One who has been identified as being ready to assume the role in 1-2 years and another who will be ready in 3-5 years. This creates a consistent cycle avoiding the issue of lack of suitable options while strengthening the overall strength of the team.
Succession planning is a proactive strategy that safeguards the long-term security of a business by preparing employees to step into critical roles. While it requires an investment of time and consistent follow-through, the benefits to employees are invaluable.
By committing to this process, businesses can cultivate a new generation of leaders and strengthen employee engagement.
However, once implemented, the gains to be had are invaluable, especially when considering retention of promising employees.
