Within its Board Effectiveness report for 2012, the Association of British Insurers has taken a swipe at UK businesses, claiming that the existing succession planning strategies of UK companies leaves a lot to be desired.
The report by the influential investor group has warned businesses that failure to successfully implement succession planning techniques, such as grooming able candidates as chief executives, could undermine shareholder value, along with market performance of listed businesses.
For any business, whether a local SME or a multinational franchise, succession planning is an important part of moving the business forward in the right direction.
However, succession planning is not something which can or will happen overnight; instead it is a process which should be continuous – and should involve all members of your business.
Although the Association of British Insurers highlight the need to groom able candidates for chief executive roles, by implementing succession planning from the very top and throughout the business, companies can be certain that during instances of illness, retirement or other situations which mean a member of the team is away from the business for a period of time, the role can still be fulfilled by a capable candidate – again, assisting your business to succeed and push forward.
For more tailored advice on implementing succession planning within your business, or for advice surrounding the best practices for succession planning, speak to a member of the Milsted Langdon team.
Milsted Langdon Director, Peter Groves, specialises in strategic business and tax planning, services for high net worth individuals and professionals.