Succession Planning is a process of devising a plan for ownership and management succession for a business to achieve multi-generational success. Many business families stumble into the second generation and fail. Statistics have shown that 30% of the businesses survive into the second generation and less than 12% make it to the third generation.
Succession Planning involves a method of identifying and nurturing new leaders who can replace the old ones and to ensure that businesses continue to run smoothly after a company's important people move on to new opportunities, retire, or pass away. It is relevant to all companies, from the largest to the smallest and from family owned to non-family owned businesses.