Creating a Succession Plan - Why It Matters

September 7, 2020

While companies plan years, unprecedented circumstances remain unavoidable. The sudden loss of a leader is one of the most disruptive things that can happen to any business, as the effects can be detrimental to the overall foundation of a company. Unfortunately, countless companies remain vulnerable to this problem today—without a successor to their CEO, businesses can quickly become chaotic and ultimately, fail.
For these reasons, having a succession plan is vital. It pertains to the planning and execution of smooth leadership transitions, including executive and new talent search, selection, onboarding, and of course, the transitioning of the new leader into the role of the CEO. To be truly effective, however, succession plans must be created long before they are needed.
If your accounting firm has no succession plan in place just yet, this guide seeks to discuss the importance of investing in one. It will require much time and effort, but the result will ensure that your business stays thriving and strong, even in the most desperate circumstances.

Reason #1: It keeps your business away from disasters

Insurance policies exist as a safety net for disasters, firewalls and other security measures protect company data, and your office is manned by security to prevent theft. Succession planning works the same way—unfortunately, most business owners get sidetracked by daily operations, that they fail to realize just how important succession planning is.
Leaders often think that they’re too young to go just yet, or the opportunities lie with their current loyalties. The unpredictability of life gets in the way, however, and leaders can be lost easily to illnesses, accidents, and other companies willing to pay beyond the norm. The sudden departure of a leader leaves any business vulnerable, but with a succession plan, disaster can be mitigated.

Reason #2:It supports a much-needed structure for training and development

Your company will have welcomed new and raw talent, individuals showing promise and value like no other candidate. With a succession plan in place, you can lead these young talented employees into senior roles. As you do, training and development are important, as this is where any competency gaps can be corrected. Once gaps have been identified, grooming for business succession can commence.
Your employee’s development can come in the form of mentoring, coaching, and the onset of more advanced tasks, but others will be asked to get additional educational degrees and certifications. No matter your company qualifications, however, tapping potential successors early allows you to hone the best employees possible, ensuring that business growth and success is always prioritized.

What can we do to make succession planning easier?

Although incredible in theory, succession planning can be difficult to execute. Luckily, the digital revolution has paved the way for new technologies, Accounting has always been a traditional industry, banking on sheer intelligence and affinity for numbers. Modern firms now rely heavily on various software, as this enables them to produce quality work for the fraction of the time.
Succession planning for accounting firms also calls for the help of technologies, such as workflow routing software. Bear in mind that an effective succession plan can only happen with proper task delegation, good employee training and development, and the streamlining of processes. This is exactly what the workflow routing software offers—the chance to help your employees gain control of their practices, all the while staying on top of their workload.

Succession Planning Provides Freedom

Without a clear blueprint in place, losing a leader will create confusion, ultimately leading to the company’s overall instability. No matter the nature, size, and structure of your firm, a well-defined plan allows you to stay on top of your goals. For the modern firm, having a competent leader-in-training at hand ensures stability, growth, and continuous success.
For the best workflow routing software in the US, MyFirm360 is the place to call! We offer you software designed for accounting firms, helping you consolidate your client and project information into one steady platform. Your processes do not have to be time-consuming, confusing, and utterly stressful. Focus on building growth through succession plans, and we’ll help you handle the rest. Reach out to us today!

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