Wednesday, August 2, 2017
The Importance of Succession Planning in 2017
In his role as head of The Posey Law Firm, attorney Jake Posey concentrates on business and commercial law, as well as government relations solutions at the state and government levels. Additionally, attorney Jake Posey provides general counsel services to businesses on various matters, including formation, contracts, and succession planning.
The importance of succession planning is evident on the metrics of cost and production. Bringing in a new hire costs exponentially more than offering a promotion and, according to one study, newly appointed executives already familiar with an organization generate as much as 30 percent more success than those who still need to learn the system.
Interestingly, though, while research consistently shows that promoting internally greatly outweighs external hiring, many businesses acknowledge that they do not have a plan, or the requisite human capital, in place. Businesses should invest having such a strategy, as it can effect a number of variables.
Succession planning plays a crucial role in the longevity of a business and in how its leaders navigate their careers. In some cases, professionals will decide to sell their company rather than looking for a successor. Finding a replacement alternately involves determining how to structure retirement and how to prevent unnecessary transition obstacles. With these routes and possible others, attorneys can offer guidance.For questions on these important issues, contact Jake Posey with The Posey Law Firm.