Succession planning in construction
Succession planning is the process of devising a strategy to ensure an organisation and its business will transition smoothly and effectively from one leader or leadership team to another. This is an important consideration in all industries, as leadership positions will change due to retirement, resignation, dismissal, health issues, and so on. It is particularly important in construction in the UK, where more than 90% of all firms are family-owned. Construction is also facing an ageing workforce, with large numbers of ‘baby boomer’ leaders and business owners set to retire in the coming years.
Succession planning can be a complex and time-consuming issue, and one that many feel can be put off to a later date. However, failure to effectively plan can be a critical factor in the future success of a business, particularly where there are no clear candidates currently within the organisation that are considered capable of taking over.
Successful succession planning can prove beneficial for an organisation, as it can provide a renewal of focus and direction, a change in management style, and can maximise company value.
Some key steps in formulating a succession plan include:
- Time schedules.
- Understanding the current state of any succession planning.
- Identifying the leader’s objectives for the plan.
- Identifying the company’s objectives for the plan.
- Identifying actions to move towards those objectives.
- Identifying and training the next generation of leaders.
- Agreeing how the any shares will be managed.
- Agreeing the level of influence and involvement the current leaders will continue to have.
- Agreeing when the plan should be reviewed and revised.
- The personal financial resources and retirement planning of the leader.
- Income tax considerations.
- Sources of funding.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
New apprentice pay rates coming into effect in the new year
Addressing the impact of recent national minimum wage changes.
EBSSA support for the new industry competence structure
The Engineering and Building Services Skills Authority, in working group 2.
Notes from BSRIA Sustainable Futures briefing
From carbon down to the all important customer: Redefining Retrofit for Net Zero Living.
Principal Designer: A New Opportunity for Architects
ACA has launches a Principal Designer Register for architects.
A new government plan for housing and nature recovery
Exploring a new housing and infrastructure nature recovery framework.
Leveraging technology to enhance prospects for students
A case study on the significance of the Autodesk Revit certification.
Fundamental Review of Building Regulations Guidance
Announced during commons debate on the Grenfell Inquiry Phase 2 report.
CIAT responds to the updated National Planning Policy Framework
With key changes in the revised NPPF outlined.
Councils and communities highlighted for delivery of common-sense housing in planning overhaul
As government follows up with mandatory housing targets.
CIOB photographic competition final images revealed
Art of Building produces stunning images for another year.
HSE prosecutes company for putting workers at risk
Roofing company fined and its director sentenced.
Strategic restructure to transform industry competence
EBSSA becomes part of a new industry competence structure.
Major overhaul of planning committees proposed by government
Planning decisions set to be fast-tracked to tackle the housing crisis.
Industry Competence Steering Group restructure
ICSG transitions to the Industry Competence Committee (ICC) under the Building Safety Regulator (BSR).
Principal Contractor Competency Certification Scheme
CIOB PCCCS competence framework for Principal Contractors.
The CIAT Principal Designer register
Issues explained via a series of FAQs.