Companies can face any number of challenges in a given year, whether it's an increase in competition, repairing or replacing key equipment, or even a global pandemic. But one common change that can wreak havoc on a company is when it's not prepared for a change in leadership. Company founders and key leaders are an integral part of any company's success, so when there's a change at the top, a lack of preparation can have a negative trickle-down effect. Today's Aegis blog features some tips for keeping companies running smoothly after changes in leadership.
Offer Regular Management Training
One of the biggest reasons a company struggles after a founder or other key leader leaves is that there's often no plan in place for replacing them. There might be qualified people who could take over the role, but they might not be interested in taking over, or they might need much more training before they're fully ready. Businesses can make leadership changes go seamlessly when they offer regular management training so that every key position has employees training to eventually take over. It strengthens the skill set of the workforce and encourages worker longevity.
Create Contingency Plans
With a solid management training program in place, companies can also focus on creating contingency plans when there's a change in leadership, whether due to retirement, termination, or a change in ownership. Contingency plans can ensure that daily operations can continue uninterrupted and that key vendors and clients receive the same attention and priority as before. Also, contingency plans should also include what financial and technical updates and changes are needed, such as account passwords, bank signatories, and building and equipment access.
Have Key Man Insurance
Unfortunately, some companies are forced to grapple with the unexpected passing of a company founder, president, or CEO, and these losses can be catastrophic to the future of the company. Companies can elect to have Key Man Insurance, which works as a form of life insurance payable to the company itself in the event a key employee or company leader passes away. Key Man Insurance can help pay for outstanding expenses, debts, and employee payments until a new leader is in place. In the event the company needs to permanent close, Key Man Insurance can also help pay back investors and pay out severance owed to employees.
Companies always like to make plans for the future, such as sales goals or growth opportunities, but they often overlook how to plan for changes in internal leadership. Aegis Insurance & Financial Services can help companies have the financial protection they need in the event of a major change in leadership, whether due to retirement, termination, or even the death of a vital company leader. Contact the Aegis office today for more information at 713-850-7622, or fill out our online form to request a free quote!