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3 important inclusions in an executive’s succession plan

On Behalf of | Feb 27, 2024 | Business Law

Some businesses only exist because a specific professional works at a company. Small professional practices operated by licensed specialists may close down when the party who starts the firm retires, experiences a medical emergency or dies. Many other businesses can adapt to sudden changes in leadership or the inability of one professional to continue working at the company. Any business that does not directly rely on the services and expertise of one professional may need to require the creation of succession plans by company executives.

Succession plans allow those in leadership roles to arrange for someone else to take over their position at a company. What details belong in the average executive succession plan to facilitate a smooth transfer of authority later?

Key qualifications

Few people understand what a job requires from a professional better than the party currently filling that role. While the company may have long had standards regarding the personal experience of those in certain roles, the executives running the company may be aware of secondary qualifications that are also important. Including clear qualifications for evaluating candidates can be crucial for getting the right person into that role later.

Training requirements

There are certain interpersonal skills and types of software that an executive may need to be able to use effectively to do their job well. Explaining exactly what training and certifications a position requires in a succession plan can help both with the evaluation of candidates and the process of getting someone up to speed to take over an executive’s job functions.

Trade secrets related to the position

The training process often involves hands-on support provided by the current executive filling a role. If they cannot count on being present to personally instruct their replacement, they may need to include key details in their succession plan explaining tasks and responsibilities not known to other employees or members of the general public. From passwords and account information to the names of contacts that key businesses, there may be key trade secrets that help an executive perform their job successfully. A succession plan may need to include those details in case the executive drafting the plan cannot provide direct support for the training of their replacement.

Understanding what a good succession plan includes may benefit those tasked with creating plans and those seeking to protect a business by requiring planning from executives.