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
Do you take the lead in a circular construction economy?
Help us develop and expand this wiki as a resource for academia and industry alike.
Warm Homes Plan Workforce Taskforce
Risks of undermining UK’s energy transition due to lack of electrotechnical industry representation, says ECA.
Cost Optimal Domestic Electrification CODE
Modelling retrofits only on costs that directly impact the consumer: upfront cost of equipment, energy costs and maintenance costs.
The Warm Homes Plan details released
What's new and what is not, with industry reactions.
Could AI and VR cause an increase the value of heritage?
The Orange book: 2026 Amendment 4 to BS 7671:2018
ECA welcomes IET and BSI content sign off.
How neural technologies could transform the design future
Enhancing legacy parametric engines, offering novel ways to explore solutions and generate geometry.
Key AI related terms to be aware of
With explanations from the UK government and other bodies.
From QS to further education teacher
Applying real world skills with the next generation.
A guide on how children can use LEGO to mirror real engineering processes.
Data infrastructure for next-generation materials science
Research Data Express to automate data processing and create AI-ready datasets for materials research.
Wired for the Future with ECA; powering skills and progress
ECA South Wales Business Day 2025, a day to remember.
AI for the conservation professional
A level of sophistication previously reserved for science fiction.
Biomass harvested in cycles of less than ten years.
An interview with the new CIAT President
Usman Yaqub BSc (Hons) PCIAT MFPWS.
Cost benefit model report of building safety regime in Wales
Proposed policy option costs for design and construction stage of the new building safety regime in Wales.
Do you receive our free biweekly newsletter?
If not you can sign up to receive it in your mailbox here.