This website uses cookies to ensure you have the best experience. Learn more

Business Succession Plan Essay

1110 words - 5 pages

Business Succession Plan
Nicholas Eddy
University of Maryland University College
MSAF 670 Section 9040
Turnitin: 10%

Introduction
At some point in our careers we all want to retire and move aside allowing somebody else to step up to our position and keep the business going. Nearly half of the businesses in the world have thought about this and have a completed business succession plan in place. The remaining businesses have either have an incomplete business succession plan or have not started one at all. This essay will cover the purpose of the business succession plan, why it is a challenge for companies to complete, and a few recommendations to overcome the challenges of a ...view middle of the document...

This leads to the reluctance of not wanting to let go of something that they have been a part of for so long. “Forty-two percent of senior partners cite a lack of confidence in the leadership ability of emerging partners as the single biggest challenge to succession planning” (Amato, 2013, p. 46). For example, there is a medium sized business with an even number of partners. Half of the partners believe Timmy is ready to become a partner but the other half are not confident in his abilities. Now you have a debate that will never be won. Therefore the remaining partners try to spread out the workload of the retiring partner.
There are five limiting beliefs about succession planning and the “next managing partner: (1) is the firm’s best business developer, (2) should be age 50 or older, (3) should be a professional CPA, (4) should service his own book of business, and (5) should be selected from the firm’s current pool of professionals” (Tierney, 2013, p. 13). These common misconceptions are creating challenges for the business succession plan. The next successor should be somebody who has the skill set, time, and will build the company up even better than it already is. If a business simply takes the next person in line then they are possibly short changing themselves.
Training is yet another challenge personnel are facing. In 2012, a survey was conducted by the AICPA Private Companies Practice Section (PCPS) and the Succession Institute LLC called the 2012 PCPS Succession Survey. This survey displayed informal training by a partner as a strategy to train their personnel to become a successor has dropped down to forty-seven percent. This is a nine percent drop within a four year period. A number of businesses are not properly training their employees to fill their shoes.
Recommendations
Businesses need to look within their own employee database to find replacements for their partners. The employees who are already working for the company are familiar with the business’ policies and procedures. They might not know everything about the business however if they are have been employed long enough or shown interest in learning how the entire business is ran then they are trainable. Partners need to create a list of employees who have the “right characteristics” and then establish a training program that will groom these...

Other Papers Like Business Succession Plan

Swot Analysis Template

294 words - 2 pages , distraction? Reliability of data, plan predictability? Morale, commitment, leadership? Accreditations, etc? Processes and systems, etc? Management cover, succession? 5 criteria examples 6 Political effects? Legislative effects? Environmental effects? IT developments? Competitor intentions - various? Market demand? New technologies, services, ideas? Vital contracts and partners? Sustaining internal capabilities? Obstacles faced

Biz Activity Essay

295 words - 2 pages ? Effects on core activities, distraction? Reliability of data, plan predictability? Morale, commitment, leadership? Accreditations, etc? Processes and systems, etc? Management cover, succession? 5 criteria examples 6 Political effects? Legislative effects? Environmental effects? IT developments? Competitor intentions - various? Market demand? New technologies, services, ideas? Vital contracts and partners? Sustaining

Business Failure

1409 words - 6 pages breathing room to pays debts to creditors but the entrepreneur have to hurry otherwise he might start receiving pressure with lawsuits from creditors. 5. Discuss the business succession plan to ensure that the new venture continues to exist. Everyday an established business ceases because of the death or disability if the key player which is usually the owner, at this point all that the person gave up to make the business become meaningless

Jdt Task 3

4852 words - 20 pages may feel that others who put in more effort should get more recognition” (Wicks, 2014). As a result it is more difficult to analyze who did what and how much time they spent on their assigned tasks. C1. Succession Planning There are many different reasons why the company should adopt succession planning. One of the main reasons is to keep a seamless approach to the way the company does business. It is important that the company recognize that

Case Study

1230 words - 5 pages employees and customers. Succession Planning Succession planning is one of the key elements of corporate strategy planning. Having no plan for a successor could lead to decision delays, drop in interest, drop in performance. Tim Hortons Inc. has delayed appointing a new CEO for one year which led to delayed action plans, drop in sales targets in Canada and USA for the years 2012 and 2013. Succession planning cannot be too early or too

Business Succession Planning

1438 words - 6 pages knowing that if a member is hurt or dies their financial investments will be secure. Each successor should have a written plan that will be followed. It will include milestones that will be periodically evaluated. Ebony Hazzle is currently being trained to fulfill all of the business’s objectives, if needed. 5. Discuss the business succession plan to ensure that the new venture continues to exist. An entrepreneur should understand the

Hr Management

3350 words - 14 pages benefits of succession planning and propose a solution for the implementation of succession planning in our organization. Performance Appraisals Performance appraisals, when properly used, are an essential and invaluable tool in the managers arsenal to plan and control productivity. Managers should use appraisals for the proliferation and oversight of their subordinates. For example, appraisals can be used to determine promotions, commendations, and

From Swords To Ploughshares

1434 words - 6 pages and non-family leaders. During this restructuring activity, Paddy developed a succession plan that ensures the company remains in the McNeely family, developed a strong business strategy, and defined leadership responsibilities, employee accountability, and future growth objectives. He also successfully integrated new leadership into the role of President and Chief Operating Officer. This position was filled outside of the family by a well

Assignments # 5 Sustainable Talent Management

5471 words - 22 pages likely to connect succession management strategies with organizational strategies. The organizations that apply the above statement holder, belief that business success hinges on having the right talent in place-at the right time. Companies that perform well are proactively addressing their talent needs. However, far too often, the connection between talent and business strategy is considered long after strategic plans are inked. Talent

Determining Internal Candidates

840 words - 4 pages would be affordable for Stonewall Industries. It is important to note that to attract and recruit an external candidate at a senior executive level could be very expensive in terms of salary for the company. By utilizing the succession management plan as outlined in question 4, Stonewall Industries will be able to save time and resources by beginning training immediately, instead of hiring an external candidate, and having to get them up to speed on

The Mission Statement

1648 words - 7 pages their purpose of existence, product and services, philosophy, mark type, and how they plan to provided customer satisfaction which will improve their existing statement. To fully solve facebook’s problems of an underdeveloped mission statement it should be reconstructed the proper way in full details including all six functions that produce a well written mission statement which are the purpose of the business, economic goals, operating

Related Essays

Succession Planning Essay

3353 words - 14 pages the aforesaid succession strategies were relatively successful, the need to plan ahead has rendered them ineffectual (Cannell, 2009). The nineties marked the period of growing uncertainty, of increasing sped of change in the business environment and flatter structures (Mowtani et al., 2006; Cappelli, 2008; Cannell, 2009). Without a doubt, it was difficult to ascertain as to whether or not the job one has will still exist after one year. It is

Succession Planning: Insurance For The Organization's Future

3180 words - 13 pages help build your company for success. Why Should Businesses Use Succession Planning? Succession planning is a logical way for businesses to prepare for the future. Eventhough many employees think of succession planning as, who is going to take over the business? Succession planning is much more than just the changeover of ownership. Businesses must prepare to develop and interchange key employees and staff and anticipate and plan for the impacts

Strategic Human Resources Planning Essay

2275 words - 10 pages , succession management allows for an organization to respond quickly and stay on target amidst change or turmoil such as a drastic and sudden change in the economy or business cycle. For example, if a significant change in the Canadian dollar appears quickly, with an effective succession management plan in place, the company is able to take appropriate action quickly to ensure the stability of the company regardless of any external factors that could

Replacement Plan Essay

1361 words - 6 pages implement the individual replacing plan. Replacing individuals should be encouraged to pursue work assignments that will build their competencies so that more workers are ready now for promotion and are ready to change organizational conditions. Questions # 5 What is the conclusion of replacement planning? Replacement planning is not a substitute for succession planning or talent management but it can provide a foundation on which to build