Dear Andy.(credit @ work)(Column)

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The topic of succession planning is one I hear a lot about these days. In your opinion, is it relevant to our credit department, or is it mostly applicable in making executive-level Leadership decisions?

When the subject of succession planning makes headlines, it's often in relation to a leadership vacuum left by a prominent executive's sudden departure. Effective succession planning extends welt beyond the uppermost rungs of an organization, however. A comprehensive approach involves identifying key people and positions throughout a department or company, defining a pipeline of future talent for every critical role, and providing access to professional-development resources and opportunities.

Although it makes good business sense to broadly apply succession-planning principles within an organization, this vital need is often overlooked. A recent Robert Half International survey found that a significant majority (83%) of chief financial officers interviewed said they had not identified a successor for their position. The primary reason for the inaction, according to 74% of respondents, was that they don't have plans to leave their jobs in the near future. The second most common reason given was a belief that there was a lack of qualified candidates within their organizations. Others said they were simply too busy focusing on other business concerns.

Despite these potential stumbling blocks, those in leadership positions have a responsibility to plan for the future to safeguard their firms' ongoing success. On a departmental level, succession planning initiatives can also give managers greater peace of mind by helping them prepare their teams to maintain productivity during periods of transition. In addition to this benefit, consider these other compelling reasons for making succession planning a priority:

1. Demographics are working against you. With the oldest baby boomers nearing their mid-60s, your department may be vulnerable to the loss of key personnel to retirement. If this is a possibility, you would likely need people who could assume the responsibilities of retiring employees and be prepared to fill the void of organizational knowledge and experience left by these veteran staff members.

2. Recruitment needs ...