Succession Planning

In the coming years, the United States will find itself facing changes in the economy unlike any in history. As baby boomers begin to retire and recede from the job market, the question many companies and industries are asking is: Who will replace these knowledgeable and talented workers?

The potential issues these trends are predicted to cause could be fatal to the organization. As workers depart from the business world, the time and dollar investment of finding a replacement, and cost directly to business lines resulting from the loss of experience and knowledge 'down-time' is the primary issue. Studies have shown companies to be unprepared for these changes and not having a formal plan at all levels across both large and small organizations.

The November 2007 edition of Employee Benefit Advisor magazine conducted a survey asking: "Do you have a succession plan for your business?" Twenty-five percent (25%) of the subjects polled answered 'No'. Seventy-five percent (75%) of the subjects answered 'We don't, but we would like to build one'. Zero percent (0%) answered 'Yes'.

The majority of businesses are not familiar with, understand, or have the time to develop a succession plan. This is exactly the reason why a consulting firm should be called in to work on a customized succession plan solution for the organization.

This, however, is only one segment of the business world facing a succession planning initiative. There are many baby boomer business owners on the verge of retiring that don't have a formal strategy to transition out of the business. This could be costly in the end for both the business, the owner, and the family.

What does this mean? It means many organizations are thinking about it and feel it is necessary, but nobody is taking the time to build a succession plan. Perhaps this is because the paradigm hasn't begun to shift. When it does, it is realistic to believe there will be a significant adversive cost effect associated with the need. Likely one that could have a profound negative impact on the business. Why not head this very foreseeable risk off now, while there is still some time for proper preparation?

JPJ Consulting can use our knowledge and expertise to develop the succession plan. We will work with the stakeholders to ensure we are building the plan in unison with the direction of the company. During this time, owners and management can focus on the day to day business activities without spending more time in the office and allowing the bottom line to remain heathly.