In the week where the incoming Bank of England governor has been signalling his intentions for when he takes over from Sir Mervyn King in July of this year, it is worth noting that succession planning for all businesses – from the Bank of England to local SMEs is important.
Unfortunately, new research has suggested that over fifty-percent of finance directors within the UK have failed to follow the example of the Bank of England when it comes to succession planning; instead they have no plans in place.
Financial directors within the Midlands are said to be the least prepared, followed by London. The findings of the survey have also suggested that less than fifty percent of financial directors from the area who took part in the survey admitting that they have taken succession planning into consideration.
When citing reasons for not taking succession planning into consideration, the report found that over a third of financial directors cited “a lack of existing internal talent” as the main reason – and this figure increased to over half for publicly listed buildings.
In addition, a further twelve percent cited a lack of exposure to senior-level initiatives for employees, with eight percent citing a lack of professional development opportunities.
As mentioned in a previous blog, succession planning isn’t something which can happen overnight; instead it is something which businesses of all shapes and sizes should be taking into consideration, especially as someone may need to step up into a roll at short notice.
Those businesses who successfully manage, monitor and implement a succession plan will reap the benefits in both the long and short-term; and if you want to ensure that your business is on the right footing with its succession plans, speak to the team at Milsted Langdon.
Milsted Langdon Director, Peter Groves, specialises in strategic business and tax planning, services for high net worth individuals and professionals.