The students pursuing the master’s degree course are in a phase of transition from bachelor’s degree to master’s degree. They have their personal aims to achieve after successful completion of master’s course. To make students aware about what is expected from them to be successful in the course. Going beyond classrooms, the induction program spelled out the Industry expectations from management students. Besides celebrations, the program was more inclined towards the introduction of syllabus, making new student feel ease with the learning place, with his/her class mates, know about formal and informal norms in the college and know about the do’s and don’ts. The process of “Transferring dreams into reality starts from this day”.
MBA students from Zeal Institute of Management, Computer Application & Research (ZIMCA), went for Industrial visit to Hydrabad, 7th January, 2016. After Visiting the insight of company , the student learn a lot about how production is working . Overall the visit was very resourceful, informative and a great learning experience for our students.
The world economy is now in its biggest growth slump probably since the Great Depression. Few predicted the scale and the impact of the current downturn after the sub-prime mortgage market in the United States collapsed banks both in the US and elsewhere, and left millions unemployed, globally. The G20 meet in London a few months ago was definitely the most important meeting of world leaders since World War II. Our leaders pledged USD 1 trillion to the International Monetary Fund – this historic and groundbreaking attempt was probably a first-of-its-kind, intended to drive global economic recovery.
The slowdown has created a competitive landscape among corporations and nations calling for a change in business models. Most business leaders and analysts talk about future growth prospects, but not many corporations have moved beyond existing conventions while addressing customers and market needs. Pundits predict that an innovative approach to products, services and business models will assuage, if not reverse, this trend of negative growth.
So what does innovation in business mean? An organization’s Innovativeness can be assessed by its drive to challenge existing market conditions and explore developmental initiatives that grow to become transformational business models. The importance of transformational business models stems from the very nature of innovation, which frequently challenges existing interests, norms, values, social practices, and relationships. These models are also a means to fill certain ‘need’ gaps in society and thereby cater to markets with hitherto untapped potential. For instance, there is a need to foster inclusive growth in rural and semi-urban India by providing access to some of the benefits we take for granted, such as basic utilities, consumer products and banking services. Inclusive growth should therefore be a key priority for businesses and governments, essentially in developing nations like India. Investments in infrastructure projects, power sector and education, therefore, needs to be high on our government’s agenda.
Developing new business models for competitive advantage has become a priority for firms around the world, but relatively little is known about the nature and dynamics of this type of innovation in India. A new study by Chander Velu, from the University of Cambridge’s Institute for Manufacturing and Mahima Kanna from the International Finance Corporation, aims to shed light on business model innovation in India over the last decade. The study was based on reports that appeared in the Indian business press (specifically, The Economic Times and the Business Standard) between 2001 and 2008. Competitive pressures are pushing business model innovation ever higher up companies’ ‘to do’ lists. While the concept has been around for a long time, it has come increasingly to the fore over the last 15 years as the pace of globalisation and technological change and shifts in industry borders have all created opportunities for new business models. The importance of business model innovation was confirmed by a survey of 700 CEOs worldwide carried out by IBM in 2008 which showed that those firms with the fastest-growing operating margins were placing twice as much emphasis on business model innovation as those which were under-performing. New business models have shown themselves to be particularly effective for commercialising scientific innovations (important for countries like India with its large scientific community), creating strategic flexibility and reducing the costs of products and services in less affluent societies. Achieving these outcomes through business model innovation is much harder for other firms to copy than product or process innovations and can therefore deliver greater competitive advantage. In emerging economies, business innovation has been instrumental in delivering more efficient services in key areas such as health care, energy provision, food security and nutrition. India has long perceived innovation to be a necessary component of sustained economic growth. The former Prime Minister, Dr Manmohan Singh, has said that India lacks funding more than innovative ideas and in 2011 the government established a $1 billion venture fund to foster innovation. Indeed, according to the GE Global Innovation Barometer (2012), India is the sixth most innovative country in the world. However, it is still far from reaching its potential; Indian companies spend only about 0.3% of their revenue towards innovation as compared to 3% spent by their counterparts in developed countries. And although firms in India have been increasingly active in creating new business models, a significant proportion of these business model innovations have been borrowed from elsewhere with very few innovations that are truly ‘new-to-world’. However, it is these newto-the-world innovations that India needs to develop if it is to achieve sustained economic growth. The study draws six broad conclusions about business model innovation in India: Although established firms are still the main drivers of business model innovations, the percentage share of innovations by new entrants has been increasing. New entrants increasingly try to achieve both efficiency improvements and find novel ways of meeting customer needs while established firms mainly use new business models to improve efficiency. Contrary to received wisdom that the IT sector is the main driver of innovation in India, there has been a clear shift in business model innovation away from IT-related industries towards consumer goods, media and financial services
New entrants introduced business model innovations that were primarily ‘new-to-industry’, whereas established firms tended to introduce innovations that were ‘new-to-firm’. Business models based on new ways of meeting customers’ needs adopted by both new entrants and established firms were predominantly new-to firm. Efficiency-centred business models, however, differed according to the type of firm, with new entrants predominantly introducing new-to-firm innovations while established firms tended to develop new-to-industry models. Over time, the novelty-centred business models changed from being predominantly new-to-industry to new-to-firm, whilst efficiency-centred business models remained relatively unchanged in terms of the newness of innovation. Somewhat unexpectedly, the study also shows that most business model innovations in India were either new-to firm or new-to-industry but not new-to world. Implications for policymakers Given the trend for innovations to be increasingly driven by new firms, one of the key policy implications is that public support could be used to help foster more entrepreneurial businesses in India, perhaps introducing a programme like ‘Enterprise Ireland’, which provides coaching, mentoring and help for entrepreneurs within a framework for developing new business models. Public funding should also reflect the findings that new entrants tend to favour novel ways of transacting business while established firms tend to focus on efficiency improvements. For example, public-private funding could be used to encourage established firms to develop efficiency-centred improvements whereas, if new types of transactions – or completely new markets – are a priority, public funds are arguably better directed at new entrants. Similarly, the study highlights that business model innovation in the IT sector is declining and therefore government support might be better spent on sectors such as consumer goods, media and financial services which have been showing much greater levels of innovation. However, there also perhaps needs to be further investigation as to why the IT sector is not at the forefront of business model innovation and if there is a need to develop a new government aided National System of Innovation (NSI) to keep India ahead of nearby lower-cost economies. In general, the lack of new-to-world innovations was surprising given the active and vibrant nature of scientific research more broadly in India and the concomitant opportunities in important industries such as healthcare and education. The authors suggest that perhaps a more comprehensive study is needed to encourage new-to-world business model innovations in India that will turn scientific breakthroughs into commercially viable propositions. The opportunities are clearly abundant and public policy has a role to play in catalysing the future of Indian business model innovation by helping firms to change, enhancing their learning capabilities, and developing knowledge pools and state-of-the-art management processes. Moreover, both market and state must play a collaborative role in designing the future of India Inc.’s competitiveness in the global sphere.
If we say that a team is great then it has to have a good leader. In other words, a good team is lead by good leaders. But the question is what makes the leader good? Are there any specific qualities that can be imbibed in the person to become a good leader or is it that leaders are born? The discussion is unending and can have many pros and cons. But it is defined that a good leader should possess some qualities to make his team work.
Studying the characteristic of leadership is useful because we tend break things into characteristics to make big concepts easier to handle. There are common traits that define leadership, and finding them only takes some study of those who have been successful. By actively building on these traits you can develop into a stronger leader.
However, if you want to be good leader then it is very much necessary that you imbibe few qualities in you. Let us discuss these traits
We have to understand one thing and that is though employees are working for money it is not the only motivation that they need. The employee is a human in the first place. It is to be understood that if the team is happy and satisfied only then they will be performing their tasks. As a leader it is our prime responsibility to make the team feel that the leader is empathic towards their personal issues.
It is most important for the leader to have confidence in his team and vice versa. If the leader is able to gain confidence of his team then it is the biggest achievement. The question is how can this confidence be built? The very first thing that the leader needs to do is he has to be assertive and has to show the swagger.
Being a consistent leader will gain you respect and credibility, which is essential to getting buy-in from the group. By setting an example of fairness and credibility, the team will want to act the same way.
Another characteristic of leadership that lends itself to credibility. Those who are honest, especially about concerns, make it far more likely that obstacles will be addressed rather than avoided. Honesty also allows for better assessment and growth.
Having the vision to break out of the norm and aim for great things –then the wherewithal to set the steps necessary to get there– is an essential characteristic of good leadership. By seeing what can be and managing the goals on how to get there, a good leader can create impressive change.
Effective communication helps keep he team working on the right projects with the right attitude. If you communicate effectively about expectations, issues and advice, your staff will be more likely to react and meet your goals.
Not every problem demands the same solution. By being flexible to new ideas and open-mindedness is enough to consider them, you increase the likelihood that you will find the best possible answer. You will set a good example for your team and reward good ideas.
A strong vision and the willingness to see it through is one of the most important characterizes of leadership. The leader who believes in the mission and works toward it will be an inspiration and a resource to their followers.
“Our employees are a direct reflection of the values we embody as leaders. If we’re playing from a reactive and obsolete playbook of needing to be right instead of doing what’s right, then we limit the full potential of our business and lose quality talent. If you focus on becoming authentic in all your interactions, that will rub off on your business and your culture, and the rest takes care of itself.”
—Gunnar Lovelace, co-CEO and cofounder, Thrive Market
“People always say I’m a self-made man. But there is no such thing. Leaders aren’t self-made; they are driven. I arrived in America with no money or any belongings besides my gym bag, but I can’t say I came with nothing: Others gave me great inspiration and fantastic advice, and I was fueled by my beliefs and an internal drive and passion. That’s why I’m always willing to offer motivation—to friends or strangers on Reddit. I know the power of inspiration, and if someone can stand on my shoulders to achieve greatness, I’m more than willing to help them up.”
—Arnold Schwarzenegger, former governor of California
“You must love what you do. In order to be truly successful at something, you must obsess over it and let it consume you. No matter how successful your business might become, you are never satisfied and constantly push to do something bigger, better and greater. You lead by example not because you feel like it’s what you should do, but because it is your way of life.”
—Joe Perez, cofounder, Tastemade
“In any system with finite resources and infinite expansion of population—like your business, or like all of humanity—innovation is essential for not only success but also survival. The innovators are our leaders. You cannot separate the two. Whether it is by thought, technology or organization, innovation is our only hope to solve our challenges.”
—Aubrey Marcus, founder, Onnit
“Patience is really courage that’s meant to test your commitment to your cause. The path to great things is always tough, but the best leaders understand when to abandon the cause and when to stay the course. If your vision is bold enough, there will be hundreds of reasons why it ‘can’t be done’ and plenty of doubters. A lot of things have to come together—external markets, competition, financing, consumer demand and always a little luck—to pull off something big.”
—Dan Brian, COO, WhipClip
“It’s inevitable: We’re going to find ourselves in some real shit situations, whether they’re costly mistakes, unexpected failures or unscrupulous enemies. Stoicism is, at its core, accepting and anticipating this in advance, so that you don’t freak out, react emotionally and aggravate things further. Train our minds, consider the worst-case scenarios and regulate our unhelpful instinctual responses—that’s how we make sure shit situations don’t turn into fatal resolutions.”
—Ryan Holiday, author of The Obstacle is the Way and former director of marketing, American Apparel
“Understanding the underlying numbers is the best thing I’ve done for my business. As we have a subscription-based service, the biggest impact on our bottom line was to decrease our churn rate. Being able to nudge that number from 6 percent to 4 Percent meant a 50 percent increase in the average customer’s lifetime value. We would not have known to focus on this metric without being able to accurately analyze our data.”
—Sol Orwell, cofounder, Examine.com
“It’s true that imitation is one of the greatest forms of flattery, but not when it comes to leadership—and every great leader in my life, from Mike Tomlin to Olympic ski coach Scott Rawles, led from a place of authenticity. Learn from others, read autobiographies of your favorite leaders, pick up skills along the way… but never lose your authentic voice, opinions and, ultimately, how you make decisions.”
—Jeremy Bloom, cofounder and CEO, Integrate
“One of the biggest myths is that good business leaders are great visionaries with dogged determination to stick to their goals no matter what. It’s nonsense. The truth is, leaders need to keep an open mind while being flexible, and adjust if necessary. When in the startup phase of a company, planning is highly overrated and goals are not static. Your commitment should be to invest, develop and maintain great relationships.”
—Daymond John, CEO, Shark Branding and FUBU
“In high school and college, to pick up extra cash I would often referee recreational basketball games. The mentor who taught me how to officiate gave his refs one important piece of advice that translates well into the professional world: ‘Make the call fast, make the call loud and don’t look back.’ In marginal situations, a decisively made wrong call will often lead to better long-term results and a stronger team than a wishy-washy decision that turns out to be right.”
—Scott Hoffman, owner, Folio Literary Management
“We all provide something unique to this world, and we can all smell when someone isn’t being real. The more you focus on genuine connections with people, and look for ways to help them—rather than just focus on what they can do for you—the more likable and personable you become. This isn’t required to be a great leader, but it is to be a respected leader, which can make all the difference in your business.”
—Lewis Howes, New York Times bestselling author of The School of Greatness
“Many of my leadership philosophies were learned as an athlete. My most successful teams didn’t always have the most talent but did have teammates with the right combination of skills, strengths and a common trust in each other. To build an ‘overachieving’ team, you need to delegate responsibility and authority. Giving away responsibilities isn’t always easy. It can actually be harder to do than completing the task yourself, but with the right project selection and support, delegating can pay off in dividends. It is how you truly find people’s capabilities and get the most out of them.”
—Shannon Pappas, senior vice president, Beachbody LIVE
“In order to achieve greatness, you must create a culture of optimism. There will be many ups and downs, but the prevalence of positivity will keep the company going. But be warned: This requires fearlessness. You have to truly believe in making the impossible possible.”
—Jason Harris, CEO, Mekanism
“My main goal has always been to offer the best of myself. We all grow—as a collective whole—when I’m able to build up others and help them grow as individuals.”
—Christopher Perilli, CEO, Pixel Mobb
“A great leader once told me, ‘persistence beats resistance.’ And after working at Facebook, Intel and Microsoft and starting my own company, I’ve learned two major lessons: All great things take time, and you must persist no matter what. That’s what it takes to be a leader: willingness to go beyond where others will stop.”
—Noah Kagan, Chief Sumo, appsumo
“It takes insight every day to be able to separate that which is really important from all the incoming fire. It’s like wisdom—it can be improved with time, if you’re paying attention, but it has to exist in your character. It’s inherent. When your insight is right, you look like a genius. And when your insight is wrong, you look like an idiot.”
—Raj Bhakta, founder, WhistlePig Whiskey
“If people aren’t aware of your expectations, and they fall short, it’s really your fault for not expressing it to them. The people I work with are in constant communication, probably to a fault. But communication is a balancing act. You might have a specific want or need, but it’s superimportant to treat work as a collaboration. We always want people to tell us their thoughts and ideas—that’s why we have all these very talented people working with us.”
—Kim Kurlanchik Russen, partner, TAO Group
“It’s a lot easier to assign blame than to hold yourself accountable. But if you want to know how to do it right, learn from financial expert Larry Robbins. He wrote a genuinely humble letter to his investors about his bad judgment that caused their investments to falter. He then opened up a new fund without management and performance fees—unheard of in the hedge fund world. This is character. This is accountability. It’s not only taking responsibility; it’s taking the next step to make it right.”
—Sandra Carreon-John, senior vice president, M&C Saatchi Sport & Entertainment
“It takes real leadership to find the strengths within each person on your team and then be willing to look outside to plug the gaps. It’s best to believe that your team alone does not have all the answers— because if you believe that, it usually means you’re not asking all the right questions.”
—Nick Woolery, global director of marketing, Stance Socks
Of course, there are several other theories about leadership and leadership styles where different skills come into play. But no matter what your approach, if you display the previous traits you will be well equipped to lead a team successfully.
“Peace does not mean an absence of conflicts; differences will always be there. Peace means solving these differences through peaceful means; through dialogue, education, knowledge; and through humane ways.” – Dalai Lama
Conflict is an inevitable part of any organization. We all have seen situations where people with different goals and needs have clashed, and ended up into intense personal animosity. When a conflict arises it does not consider position, experience etc of the employees. Conflict management is the ability to be able to identify and handle conflicts sensibly, fairly, and efficiently. It has been observed in many organizations that all the employees at some point of time in their career have ended up in conflicts with their colleagues, seniors or even juniors. It is necessary for all of us to come out of conventional books of HRM and think about the concept of conflict management.
In the world of psychology, it is said that no two people are same. The rule applies to conflict management also. There are few employees in the organization who get embroiled into conflict more often than other employees. There are too many reasons for the employees to end up into conflicts. The issues might be simple or complex. But the question I want to raise is “Is conflict good or bad?” in the organization. To answer this question I would say no conflict is good or bad unless and until the leader knows how to manage the conflict that has arise in the organization. In other words, if the leader is not able to handle the conflict then it may result into attrition which is not at all a good sign for the organization.
There is an interesting survey done by E&Y where they quote that more than 70% of the conflicts in the organization are manifested due to strained interpersonal relationships of the employees. The leader spends more than 20% of his time in resolving these conflicts. The most important thing that needs to be taken care in conflict is no conflict should remain unsolved. These unsolved conflicts may lead to serious issues in the organization.
The leader should keep following things in mind for he starts handling conflicts in the organization.
1. Forcing aka competing
An individual firmly pursues his or her own concerns despite the resistance of the other person. This may involve pushing one viewpoint at the expense of another or maintaining firm resistance to another person’s actions.
Examples of when forcing may be appropriate
• In certain situations when all other, less forceful methods, don’t work or are ineffective
• When you need to stand up for your own rights, resist aggression and pressure
• When a quick resolution is required and using force is justified (e.g. in a life-threatening situation, to stop an aggression)
• As a last resort to resolve a long-lasting conflict
Possible advantages of forcing:
• May provide a quick resolution to a conflict
• Increases self-esteem and draws respect when firm resistance or actions were a response to an aggression or hostility
Some caveats of forcing:
• May negatively affect your relationship with the opponent in the long run
• May cause the opponent to react in the same way, even if the opponent did not intend to be forceful originally
• Cannot take advantage of the strong sides of the other side’s position
• Taking this approach may require a lot of energy and be exhausting to some individuals
2. Win-Win aka Problem Confronting
Collaboration involves an attempt to work with the other person to find a win-win solution to the problem in hand – the one that most satisfies the concerns of both parties. The win-win approach sees conflict resolution as an opportunity to come to a mutually beneficial result. It includes identifying the underlying concerns of the opponents and finding an alternative which meets each party’s concerns.
Examples of when collaborating may be appropriate:
• When consensus and commitment of other parties is important
• In a collaborative environment
• When it is required to address the interests of multiple stakeholders
• When a high level of trust is present
• When a long-term relationship is important
• When you need to work through hard feelings, animosity, etc
• When you don’t want to have full responsibility
Possible advantages of collaborating:
• Leads to solving the actual problem
• Leads to a win-win outcome
• Reinforces mutual trust and respect
• Builds a foundation for effective collaboration in the future
• Shared responsibility of the outcome
• You earn the reputation of a good negotiator
• For parties involved, the outcome of the conflict resolution is less stressful (however, the process of finding and establishing a win-win solution may be very involed – see the caveats below)
Some caveats of collaborating:
• Requires a commitment from all parties to look for a mutually acceptable solution
• May require more effort and more time than some other methods. A win-win solution may not be evident
• For the same reason, collaborating may not be practical when timing is crucial and a quick solution or fast response is required
• Once one or more parties lose their trust in an opponent, the relationship falls back to other methods of conflict resolution. Therefore, all involved parties must continue collaborative efforts to maintain a collaborative relationship
Compromising looks for an expedient and mutually acceptable solution which partially satisfies both parties.
Examples of when compromise may be appropriate:
• When the goals are moderately important and not worth the use of more assertive or more involving approaches, such as forcing or collaborating
• To reach temporary settlement on complex issues
• To reach expedient solutions on important issues
• As a first step when the involved parties do not know each other well or haven’t yet developed a high level of mutual trust
• When collaboration or forcing do not work
Possible advantages of compromise:
• Faster issue resolution. Compromising may be more practical when time is a factor
• Can provide a temporary solution while still looking for a win-win solution
• Lowers the levels of tension and stress resulting from the conflict
Some caveats of using compromise:
• May result in a situation when both parties are not satisfied with the outcome (a lose-lose situation)
• Does not contribute to building trust in the long run
• May require close monitoring and control to ensure the agreements are met
4. Withdrawing aka Avoiding
This is when a person does not pursue his own concerns or those of the opponent. He does not address the conflict, sidesteps, postpones or simply withdraws.
Examples of when withdrawing may be appropriate:
• When the issue is trivial and not worth the effort
• When more important issues are pressing, and you don’t have time to deal with it
• In situations where postponing the response is beneficial to you, for example –
• When it is not the right time or place to confront the issue
• When you need time to think and collect information before you act (e.g. if you are unprepared or taken by surprise)
When you see no chance of getting your concerns met or you would have to put forth unreasonable efforts
When you would have to deal with ostility
When you are unable to handle the conflict (e.g. if you are too emotionally involved or others can handle it better)
Possible advantages of withdrawing:
• When the opponent is forcing / attempts aggression, you may choose to withdraw and postpone your response until you are in a more favourable circumstance for you to push back
• Withdrawing is a low stress approach when the conflict is short
• Gives the ability/time to focus on more important or more urgent issues instead
• Gives you time to better prepare and collect information before you act
Some caveats of withdrawing:
• May lead to weakening or losing your position; not acting may be interpreted as an agreement. Using withdrawing strategies without negatively affecting your own position requires certain skill and experience
• When multiple parties are involved, withdrawing may negatively affect your relationship with a party that expects your action
5. Smoothing aka Accommodating
Smoothing is accommodating the concerns of other people first of all, rather than one’s own concerns.
Examples of when smoothing may be appropriate:
• When it is important to provide a temporary relief from the conflict or buy time until you are in a better position to respond/push back
• When the issue is not as important to you as it is to the other person
• When you accept that you are wrong
• When you have no choice or when continued competition would be detrimental
Possible advantages of smoothing:
• In some cases smoothing will help to protect more important interests while giving up on some less important ones
• Gives an opportunity to reassess the situation from a different angle
Some caveats of smoothing:
• There is a risk to be abused, i.e. the opponent may constantly try to take advantage of your tendency toward smoothing/accommodating. Therefore it is important to keep the right balance and this requires some skill.
• May negatively affect your confidence in your ability to respond to an aggressive opponent
• It makes it more difficult to transition to a win-win solution in the future
• Some of your supporters may not like your smoothing response and be turned off
It depends on the leader as how he manages the conflict arise in the team. To avoid conflict great leaders imbibe universal principles and ideas in the team.
A student yesterday walked into my cabin and asked a question that why is succession planning so important for an organization? Is it that the organization cannot function without doing succession planning?
In the answer to this let us talk about the statistics. Each year about 10% to 15% of corporations must appoint a new CEO, whether because of executives’ retirement, resignation, dismissal, or ill health. In 2015, in fact, turnover among global CEOs hit a 15-year high. Activist investors are increasingly forcing out leaders they deem underperforming. Yet despite these trends, most boards are unprepared to replace their chief executives. A 2010 survey by the search firm Heidrick & Struggles and the Rock Center for Corporate Governance at Stanford University revealed that only 54% of boards were grooming a specific successor, and 39% had no viable internal candidates who could immediately replace the CEO if the need arose.
An organization’s top executive is one of the few variables over which boards have total control—and their failure to plan for CEO transitions has a high cost. A study of the world’s 2,500 largest public companies shows that companies that scramble to find replacements for departing CEOs forgo an average of $1.8 billion in shareholder value.
A separate study reveals that the longer it takes a company to name a new CEO during a succession crisis, the worse it subsequently performs relative to its peers. Finally, poor succession planning often extends the tenure of ineffective CEOs, who end up lingering in office long after they should have been replaced. A study by Booz & Company found that, on average, firms with stock returns in the lowest deciles underperformed their industry peers by 45 percentage points over a two-year period—and yet the probability that their CEOs would be forced out was only 5.7%.
The concept is of outmost importance for any organization though the future of the organization is very much clear. The normal tendency of a human being is they overlook the planning when things are not going on right. But succession planning is the process which should not wait.
- You can’t plan for disaster.
No matter how good you and your staff are at revenue projections or economic predictions, no one can truly plan for disaster. Whether it’s an unforeseen illness, a natural disaster, or a CEO’s decision to suddenly retire, the reasons for having a succession plan in place before it is needed are endless. So while you can’t plan for disaster, you can put into place a series of contingencies that will help your company stay afloat if, in fact, catastrophe occurs.
2. Succession planning benefits the business now.
Just as business practices have evolved over the years, succession planning has also grown and changed. It’s no longer a plan that can only be accessed when leadership is going to change; a succession plan can be used before its “real” intent is necessary. It can be used to build strong leadership, help a business survive the daily changes in the marketplace, and force executives to review and examine the company’s current goals.
3. Succession planning gives your colleagues a voice.
If you’re running a family business, the process of succession planning will give family members an opportunity to express their needs and concerns. Giving them that voice will also help create a sense of responsibility throughout the organization, which is critical for successful succession planning. Resist the temptation to solely carry the entire weight of creating and then sustaining a plan.
4. A succession plan can help sustain income and support expenses.
Talking about money should be a priority. People generally don’t want to work for free and things don’t pay for themselves. A succession plan can provide answers as to what you—and your staff—will need for future income, as well as what kinds of expenses you may incur once you step out of the main leadership role. Ask yourself questions about your annual income and other benefits including health and dental insurance for you and your dependents, life insurance premiums paid for by the company, your car, professional memberships, and other business-related expenses.
5.Succession planning gives you a big picture
Some companies mistakenly focus solely on replacing high-level executives. A good succession plan can go further, however, and force you to examine all levels of employees. The people who do the day-to-day work are the ones keeping the business going. Neglecting to add them to the succession planning mix could have dire consequences. As you develop your plan, incorporate all layers of management and their direct reports.
6.Succession planning strengthens departmental relationships.
When regular communication occurs between departments you are more likely to experience synergy, which breeds a culture of strength. Make sure that you link your succession planning activities with human resources. After all, HR is about people. By including HR in succession planning, you can incorporate elements like the employee-evaluation process, which can help when deciding whether to fill vacancies with internal candidates.
7.Succession planning keeps the mood buoyant.
Change—a major component of a succession plan—is exciting and can bring a company unforeseen rewards. Still, change can be a source of tremendous stress, especially when people’s livelihoods are at stake. As you put your succession plan together, consider its positive effects on the business. Planning for the future is exciting and, if done correctly, can inspire your workers to stay involved and maintain company loyalty. It’s true that a plan is often put into place to avert catastrophe, but it’s also a company’s way of embracing the future—a business strategy that is essential for survival.