Definition: is an integral section of any company’s business continuity plan, as its primary purpose is to ensure a streamlined, fluid succession of key management positions regardless of any internal or external circumstances. This plan describes which individual replaces the current position holder and covers all office posts that are considered to be crucial for the company’s recovery from even the most catastrophic situations. An executive succession plan also allows a firm to prepare those employees that are expected to climb up the career ladder so that they can efficiently perform their duties should such a transfer occur.
In a Sentence:
If the board has to search for an outside hire to fill the CEO position that means that the executive succession plan was poorly constructed.
The board of directors spent the last two months developing an executive succession plan to make sure that the company will live on regardless of what may happen in the future.
It’s common for small family-owned type businesses to make such an executive succession plan that includes a section on how to prepare the next generation to take over the operations of the company.
Synonyms and related words: management succession plan, business continuity, perpetual succession, CEO succession, strategic leader development