Tag Archives: Succession Planning

Importunacy of Administrative Procedures

Administrative procedures are more than mundane policies. They are put in place to ensure the survival of the company in any event or situation. From catastrophes, to change, to basic day-to-day activities, administrative office procedures address them all when they are done correctly. Business continuity, succession planning, audit requirements, and recovery planning are all included in administrative procedures.

Business Continuity

Business continuity is also known as business continuance. It is the plan in place to keep a company running in the event of a disaster, both during and after the disaster. Establishing business continuity requires identifying essential tasks first. This includes items and services that are critical for the organization to function. These will vary by organization but they include technology, employee safety, sound structure, etc.

Business Continuity Steps:

  • Determine risks that the company will likely face (weather, IT, sabotage, etc.).
  • Analyze the effects of each risk or hazard that you discover on different aspects of the company (safety, functions, assets, etc.). Determine how long your company could function if one of these risks came to pass and what recovery would require.
  • Develop a team and strategy to address the potential problems.
  • Develop a plan and document each step before sharing it with the rest of the team.
  • Test the plan using different methods such as drills, walkthroughs, and checklists.

 

Succession Planning

Successful succession planning develops a pool of talent so that there are more than enough qualified candidates to fill vacancies in leadership. This strategy requires recruiting qualified talent, creating a talent pool, and instilling loyalty in employees.

 

  • Identify goals and objectives: Common goals include profitability, employee loyalty, service, and productivity.
  • Identify needs in the company: Consider changes in the responsibilities of different positions the company develops.
  • Recognize trends in the workforce: Understand the changes occurring in within and without your organization, such as an aging workforce.
  • Develop the employee pool: Determine where to find employees to fill in the gaps (within, recruiting drives, social media, etc.), and develop a plan to engage them once they are chosen.

 

Internal and External Audit Requirements

Both internal and external audits are important for identifying risks that organizations face. The internal audit addresses how effective and reliable administrative controls are. An internal audit also addresses record accuracy, legal compliance, and management action. Internal audits and external audits are similar, but the internal auditor is an employee of the company that he or she audits. The external auditor is not an employee, and he or she will create a report based on the finances, operations, and compliance of companies. Both internal and external auditors provide recommendations based on their assessments.

The auditor, whether internal or external, is required to be independent and objective, qualified, provide adequate testing, provide adequate documentation and action, offer verification and review, and give a report that will be reviewed by relevant parties, such as the board of directors.

Recovery Planning

Recovery planning goes hand-in-hand with business continuity. Recovery planning or disaster recovery planning is the process that is put in place to recover data, software, hardware, and manpower that the company needs to start back up after a disaster.

Recovery Planning Steps:

  • Identify critical systems and prioritize them, and identify potential risks.
  • Determine strategies for data, technology, suppliers, people, and facilities.
  • Create a plan with step-by-step instructions based on the strategies discovered.

Test the recovery plan and make adjustments as necessary.

Source:  Administrative Skills

River Street Consultant

Replacement Planning

Succession planning and replacement planning are two different things. Replacement planning is focused on identifying immediate understudies, while succession planning is focused on developing talent to move forward.

What is Business Succession Planning?

Successful succession planning is related to leadership development. It develops a pool of talent so that there are numerous qualified candidates throughout the organization to fill vacancies in leadership. Succession planning used to concentrate on developing leadership at the top level, but now it is building a strong talent base, which helps to increase employee loyalty and ensure the longevity of the company. This strategy requires recruiting qualified talent, creating a talent pool, and instilling loyalty.

Benefits of succession planning:

  • Decreased turnover
  • Increased employee satisfaction
  • Improved commitment to company goals
  • Enhanced image of the organization

What does succession planning require?

  • Identify the long-term goals and objectives of the business: The long-term goals directly relate to succession planning. Is the company’s goal to grow or maintain its current position? Will it expand into other fields? All of these questions need to be addressed before creating a succession plan.
  • Understand the developmental needs of the company and identify employees who fit these needs: The responsibilities of employees change over time. Some positions may be eliminated in the future while others will be added.
  • Recognize trends in the workforce and engage employees to build loyalty: Understanding workforce trends will help you predict the needs of your organization. For example, are your key employees nearing retirement? Have you invested in talented employees to take on additional roles?

 

What Is Replacement Planning?

Replacement planning works under the assumption that the structure of the organization will not change. This is easier to apply in small family businesses that do not have any goals to expand or grow in the future. There are typically two or three “replacements” identified in the organization chart. Each backup is listed with his or her ability to replace an existing leader. The employees are not necessarily developed to understand the new working environment or smoothly transition into his or her new responsibilities.

 

Differences Between

Many executives believe that they are engaging in succession planning, but in reality they are still using replacement planning.

The Main Differences:

  • Replacement planning focuses on finding suitable replacements only for top executives.
  • Succession planning means that the company is easily able to fill vacancies throughout the business because employees are being empowered and developed.
  • There is a short list of candidates in replacement planning.
  • Succession planning builds a large talent pool.

Succession planning takes a little more time and effort from those in leadership, but it yields a high return on such an investment.

 

Deciding What You Need

There are several different factors that indicate when a company needs to implement or re-evaluate succession planning.

  • Turnover becomes critical: The number of high-potential workers leaving is higher than average workers leaving. (This can happen in any economy.)
  • Employees feel undervalued: When a majority of your employees feel that there is no room for advancement or that you choose too many outside hires, there is a succession-planning problem.
  • There are no replacements for key talent: Should a valued member of staff suddenly leave, there is no one able to take his or her place.
  • Managers notice that there are not many candidates for promotion: Employees who are not developed for leadership will never be promoted.
  • The time to fill metric is high or unknown: The time to fill metric is the average length of time that it takes to fill a position. A high number means that the company needs to focus on succession planning.
  • The retention risk analysis is high: A risk analysis uses different factors to determine the potential number of employees who will leave. These will factor in retirement and other trends.

Source:  Business Succession Planning

River Street Consultant