*A hypothetical story is being illustrated of a business owner named Dave. He runs a bakery which specializes in Cakes, Cupcakes & Danish Pastries. Dave is a 50-year-old individual that has been working in the bakery for the last 25 years. The bakery was established in 1980 by his father, carries a family legacy and ranks in the Top 10 bakeries in Singapore every year. He is now looking forward to his retirement and plans to hand over the bakery and its legacy. However, he lacks the knowledge of what to do next, who to give the bakery for future operations (his family, long time employees or sell to someone who wishes to own a bakery). This is a type of situation we assist respective business owners like Dave in making a succession plan for his bakery as he plans for his retirement.
Succession Planning may initially be deemed as unnecessary, but a lot of business have come to a standstill as the owners may not have done any sort of planning after their departure from the business. In our case, Harry would appreciate for a successor to take over as the bakery has a great legacy and brand value which draws customers as well as market recognition in Singapore.
What happens in a Succession Planning?
Glad that you asked. Succession Planning is a structured approach to build or develop potential successor(s) in a manner that fits their strength or identifying the best contender or concentrating in allocating resources in the right direction to achieve business continuity for the long run. When done correctly, succession planning can be effective for business owners to live with a peace of mind in regard to their business ensuring the retention of great talent, longevity of their business once they have left, etc.
A succession plan has stages to be executed and these stages vary according to what a business may require: Survival Stage, Commitment Stage, Recruitment Stage, Development Stage, Selection Stage, Announcement Stage and Implementation Stage. These are some of the stages that are used to execute but not every stage has to be executed and some stages can be skipped entirely depending on the business.
If you’re need of a succession plan for your business, drop us a call and we can discuss further how to go about with the planning.