Why is succession planning important? What are the consequences of failing to do so?

It is crucial to plan ahead for the future. This includes identifying leaders that can step in when current personnel leaves or moves up the ranks within an organization. It also provides an opportunity to develop and cultivate talent from within that may already be familiar with the organization’s values, culture and goals. The smooth transfer of leadership is ensured, and the costs for recruiting new executive are reduced. By adopting a proactive strategy, companies can have greater control over the executive recruitment process and not rely on external candidates that may be less qualified for certain roles.

Failure to plan for succession can lead to negative outcomes such as reduced organizational efficiency, due to a lack of preparation for future changes. It can also cause delays or missed opportunities in project completion. In the end, succession planning can be an important component to any successful business. This should begin early so that costly mistakes are avoided.