Right People, Right Seats: What does that have to do with succession planning?
O*NO! You’ve built a successful real estate agency, but what happens when it’s time for you to step back? Succession planning is critical, but it’s not just about finding someone to take over—it’s about finding the *right* people and putting them in the *right* seats. In this blog, we’ll explore how to approach succession planning strategically, ensuring that your agency continues to thrive even after you’ve handed over the reins.
Why Succession Planning Matters
Succession planning is often misunderstood as a simple process of naming a successor. However, it’s much more complex and vital for the long-term success of your business. Without a clear succession plan, you risk leaving your agency vulnerable to leadership gaps, operational disruptions, and even a potential decline in value.
A robust succession plan ensures that your agency will continue to operate smoothly and effectively, regardless of changes in leadership. It’s about preserving your legacy, protecting your team, and ensuring that your clients continue to receive the high level of service they’ve come to expect.
Rethinking the Organisational Chart: Roles First, People Second
Traditionally, many business owners create their organisational charts by starting with the people they have and then assigning roles based on their skills and experience. While this approach seems logical, it can lead to significant gaps when planning for succession. Instead, it’s better to flip this process on its head: start with the roles that need to be filled, then think about who is best suited to take them on.
Why This Matters: By focusing on roles first, you ensure that all critical functions within your agency are covered. This approach helps you identify where you might have potential weaknesses or gaps, especially in the context of succession. It also allows you to think more strategically about who in your current team might be ready to step up—or whether you need to look outside your agency to fill certain roles.
Mapping Out the Key Roles and Responsibilities
To start rethinking your organisational structure, begin by mapping out all the key roles within your agency. Don’t think about who is currently filling these roles; instead, focus solely on what needs to be done for your agency to operate smoothly.
Here’s how to approach this:
Identify Core Functions: Start with the core functions of your business—sales, marketing, operations, client relations, and finance. These are the pillars that keep your agency running.
List Key Tasks* For each function, list out the key tasks and responsibilities. This ensures that no critical function is overlooked. For example, under sales, you might include tasks like client prospecting, property listings, and contract negotiations. Under operations, you might include property management, legal compliance, and team coordination.
Assess Current Coverage: Once you have a clear picture of the roles and tasks, assess how well they are currently covered. Are there any roles that are overburdened or underperforming? Are there critical tasks that aren’t being addressed effectively? This assessment will help you identify areas that need attention as you plan for succession.
Training and Development: Closing the Skills Gap
After mapping out your organisational structure and identifying the key roles, the next step is to assess the skills and readiness of your team. Succession planning isn’t just about handing over responsibilities; it’s about ensuring that your successors are fully prepared to take on their new roles.
Identify Potential Successors: Start by identifying team members who could potentially fill key roles in the future. Look for individuals who have the necessary skills, experience, and, most importantly, the desire to take on more responsibility.
Evaluate Skills Gaps: Once you’ve identified potential successors, evaluate their current skill sets. Are there any gaps that need to be addressed? For example, a strong salesperson might need more training in management or finance before they’re ready to take on a leadership role.
Invest in Development: Based on your evaluation, develop a training and development plan for each potential successor. This might include formal training programs, mentoring, or hands-on experience in different areas of the business. The goal is to ensure that when the time comes for succession, your team is fully equipped to step into their new roles without missing a beat.
The Importance of Communication
Effective succession planning also requires open and transparent communication. It’s important to discuss your plans with your team and ensure that everyone understands the goals and expectations. This not only helps to avoid any surprises but also fosters a sense of inclusion and buy-in from your employees.
Be Clear About Expectations: When communicating your succession plan, be clear about what you expect from your team. Let them know how they can contribute to the success of the plan and what opportunities might be available to them in the future.
Create a Timeline: It’s also helpful to create a timeline for your succession plan. This gives your team a clear idea of when changes will happen and what steps they need to take to prepare. A well-communicated timeline can help to reduce uncertainty and ensure a smooth transition
Common Pitfalls to Avoid
Even the best-laid plans can go awry if you’re not careful. Here are some common pitfalls to watch out for as you develop your succession plan:
Overlooking Key Roles: Don’t focus solely on the top leadership position. Make sure that all critical roles within your agency are covered, including those that might not seem as prominent but are essential to day-to-day operations.
Neglecting Training: It’s not enough to identify a successor; you need to ensure they are fully prepared for their new role. Investing in training and development is crucial to a successful transition.
Failing to Communicate: A succession plan that isn’t communicated effectively can lead to confusion and uncertainty. Make sure your team is informed and involved in the process.
Key Takeaways
Succession planning is about more than just naming a successor; it’s about strategically placing the right people in the right roles.
Start by identifying the key roles and responsibilities within your agency, then assess who is best suited to fill them.
Invest in training and development to close any skills gaps and ensure a smooth transition.
Effective communication is essential to a successful succession plan.
NEXT STEPS
Are you ready to start planning for the future of your agency? Book your free 10-minute chat with our team today to discuss how we can help you identify the right people for the right roles and create a robust succession plan that ensures your agency’s continued success.
Boring legal stuff: This article is general information only and cannot be regarded as legal, financial or accounting advice as it does not take into account your personal circumstances. For tailored advice, please contact us. PS - congratulations if you have read this far, you must love legal disclaimers or are a sucker for punishment.