A Mid-Atlantic manufacturer’s new board asked for a succession plan for executives and department leaders:

• The board will remove two of the five executives.
• Very few leaders have the competencies to become executives.
• The bench for replacing leaders is thin.
• The company has a very low turnover rate – 7%.
• The company has not made its business plan in two years.

Who will take care of our customers?

• Who do you trust to carry on the legacy of your business?
• Who do your customers trust other than you?
• Who can take care of your employees?
• Who has the know-how to carry on for you?

You must consider:

• One, three, and five year goals for your business.
• Where will your customers be.
• What skills will be needed in the future. For example – sourcing from China, internet sales channel, or technology changes such as nanotech.

Make a list:

• Begin to develop pipeline of promising and promotable leaders in your business.
• Write down their strengths and areas to develop – to align with where your business is headed.
  – Above all, honestly assess the talent potential of your people.

Three key puzzle pieces:

• Strengths analysis versus business needs.
• Retention risk.
• Bench depth.

You must:

• Commit to developing people to fill important positions.

Or:

• Hire skills needed from the outside.
• Have a plan to live and work forever.

• Planning to have the right people in the right jobs at the right time
  is not a “nice to do” it is a “must do.”
• It is as important to plan for “as are” products, capital, etc.
• It takes years of “bench building” to build a great talent base.
• You can make your business wishes come true.