Page 28 - Lighting Magazine December 2018

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Unlike the succession plan of a ruling monarchy, passing the torch in business is a bit more complicated. Here is what you need to know about ensuring your company’s continued success. BY MARY JO MARTIN
24 enLIGHTenment magazine | december 2018
www.enlightenmentmag.com
Much like writing a will, no one relish- es the task of succession planning. A er all, it involves handing over the reins of a business you’ve poured your heart into to someone
else. The stakes are high, and understandably that makes almost everyone involved – from the top management down – nervous.
Succession planning is a good thing. Designed to help companies prepare for the future, the process is vital for identifying and developing new leaders capable of carrying the ball as veteran executives lessen their day-to-day involvement or leave the company.
With such a plan in place, there is less chance of top executives leaving the company for greater op- portunities elsewhere if they’re secure in knowing
what lies ahead. By identifying and grooming these future leaders, they will be experienced and ca- pable successors as those roles become available.
There are important bene ts to the process. For example, a succession plan may help a busi- ness retain key employees, reduce its tax burden, and maintain the value of its stock and assets dur- ing a management or ownership transition. For family-run businesses, having a well-thought-out succession plan can maintain the family’s control of a company they’ve had for generations.
Succession planning is also an important step that needs to be shared with business and supply chain partners, those companies that have put a lot of time and e ort into their relationship with you. By revealing the plans for the future, your partners will sleep be er at night, too.