Every business needs succession plan

Russell Bell PHOTO/FILE

Future-proofing your business is much more than just about information technology and having the latest gadgets.

It is strategic at its core and must be undertaken with a clear view of where you and your business are headed.

I remember a while ago that I asked a group (one that thought of itself as "modern and vital") this question: "How can you possibly consider yourself future-proofed if you haven't considered the future?" Deer in the headlights would be a good way to describe their reaction.

In this business environment, things move at a fantastic pace and we are constantly faced with change and decisions requiring our attention which are new. If we haven't, even in a small way, prepared ourselves for what the environment might throw at us, we are setting ourselves up for a difficult time.

Of course, succession planning is a key component of future-proofing and, in my view, it is a critical aspect of business that is often overlooked - or reliance is placed that current successors will "be around" when it is time for the business to be handed over.

A succession plan provides certainty to all people involved in a business about how a transition to new leadership will occur over time, together with the milestones that are important to ensure the transition occurs. My advice is that you get a professional who is experienced in strategic planning to write and implement the plan because of its criticality.

Training and development of staff is also a core component of a succession plan. It is understandable from a financial perspective to scale back on some overheads, but training and development of your people is an investment rather than a cost. Having the best and most competent staff is crucial to your delivery of value.

Other "costs" which are really investments are those that increase customer satisfaction and/or visits. Marketing and any costs associated with enhancing the customer experience come to mind here.

The advent of technological change and leveraging it is a good example of "change presenting an opportunity". So it makes sense to keep in touch with technology change and understand how it might future-proof your business.

The key is developing your long-term strategic plan first and then working proactively on ensuring that your business is geared towards managing change and is robust in critical areas. These can include risk management, business continuity, change management and strategic marketing (among others). So it is important to think ahead and structure your business to cope with the current environment and what is about to come - investment here can make not only longevity likely, but success too.