Until recently, many CEOs and companies in general had not thought much about succession planning. But sooner or later, everyone is either going to be replaced early in their career or retire due to age or for health reasons. Whether you own a family business or you are the CEO of a company, you may get to the point of deciding that you no longer want to go into the office any more. Organizations need to find new leadership as more and more top-level executives, managers, and decision makers who are in the baby-boomer years are beginning to reach retirement age.

Have you been putting off succession planning? Succession planning is not just about picking the next CEO. It is the process in which the captain of the ship needs to plan for hiring, training, and developing the crew (employees) as part of your ship's (company's) long-range growth plan. Succession planning was once reserved for replacing key leadership positions of a company; it is now needed for all positions of the corporation.

With more than 40 percent of companies not having a CEO succession plan in place, many businesses are neglecting an important step in their long-term planning - that of succession planning for any reason the leadership of the company can no longer perform their job. Unfortunately, very few organizations, whether they are family run or not, have well-thought-out or well-executed succession planning programs.

In preparing for business succession, think about both the best and worst case scenarios of what could happen to your company after you leave. Your succession plan needs to consist of a series of sequential steps. The key points to keep in mind are as follows:

1. Exit Strategy: Exit strategies are rare among small businesses. I believe that you need to start your succession plan as soon as you are in your position because you never know what situations may arise to make you leave your captain's chair. The smoother the transition, the better for you and for the next person inheriting the executive suite. (Only 32% who plan to retire in the next five years have identified successors.)

2. Write Your Job Description: Write down on paper what your job consists of and what you do. What about - It is also helpful if you have a procedures manual for all of the various procesees and procedures that are important to your position and to your company/business. First, this helps you to understand your job better. Second, your successor will be able to see what the job of the CEO entails, the job description, and the criteria they will need in functioning as the CEO.

3. Ask Questions: By your asking yourself and others questions regarding succession, you are going to get others to think about whom may be next in line to succeed you. As the CEO of a company, no matter the size, getting input as to expectations from both yourself and others will make the transition easier.

Nearly 70% of family business owners expect to keep the business within the family for the foreseeable future. With a family run business, it is important to involve your family in successive planning discussions. Ask yourself if your children are qualified to run the business or if they even have any interest in the business when you decide you want to leave. Will your family business survive when it is passed down to the next generation?

Many believe that the first born should run the show, but need to think about the fact that they may not have the skills or interest to run it. Then, you may need to find out if there is another family member who is more capable and interested in wanting the business. If the company stays within the family, you may want to or need to decide what roles your children will play in the company. Definitely monitor what they have been doing in their current positions.

If no one from the family wants to run or even stay involved in the business after you decide to leave, you need to think about what is best for the business. You need to decide whether to sell the company or try to merge it with another company. If you decide to have a family member succeed you, have a strategy for dealing with those unhappy family members who were not selected to lead the company.

The fact is, more than seven out of 10 family-owned businesses fail to survive the transition from founder to second generation. Of those that do, only 20 percent survive to the third generation.

4. Who Are Your Stars: When it comes time to find your company's next top executive, you can either promote from within or go outside the company. In determining who to choose as the company's next leader, primarily look at employees who have strong talents and skills to help the business grow. Since different people bring different talents and skills with them into the workplace, observe those who are enthusiastic and creative in what they do, especially as they solve challenging issues. Of course, not everyone is going to be strong in all areas, so also pay close attention to what their gaps might be in their (leadership) skills.

Prior to interviewing for leadership, identify your critical management issues and write them as questions. Also ask about the candidates' vision for the company, their personal values, needs development, and ask them questions about what they would do in crisis situations. These are the areas that can make or break your company in moving forward. Find out about their strengths and weaknesses, about how clearly they communicate their responses to your questions, and have them paint an exciting picture of how the company would look when they are in charge. Finally, how do they learn from others, especially during a transition phase when the changing of the guard takes place?

You need to look at both your high potential and low potential employees. Your high potentials may be very qualified by the skills they demonstrate, and the low potential employees may not have been able to get promoted to the point of using their skills to their maximum potential for you to see what they can do. These low potential employees may be your next stars if given the proper training and the chance to shine.

5. Determine Your Role: With your succession plan in place well in advance of your planned departure, you need to think about whether or not you are going to be involved during the transition phase. In aligning your strategic priorities, some companies involve their entire company, not just HR or the executive team. Some CEOs continue to be involved in the process of transforming the company. Should you be retained as a future consultant for a specific time period?

6. Get to Know Your People: Since succession is about creating a "fit" between what your company must do strategically and the person you choose who can best implement that strategy, you might talk to your employees on a regular basis and get to know them inside and out. While you do this, even in getting some employees together for a roundtable discussion, find out their skills, their ability to listen to others, what questions they ask and how they answer questions posed to them, and notice their behaviors and interactions with others. Essentially, assess your high potential managers' strengths, weaknesses, and succession readiness. As already mentioned, you might want to promote those who are your low potentials with the skills, talent, and desires to move up the corporate ladder. Some of these individuals are employees who have the potential, but no one has given them a chance.

7. Identify the Right Candidates: Establish a process for identifying the right candidates. Make sure the specific candidates fit your criteria for taking the helm after you leave. As you decide who your candidates may be, those who were promoted from inside your company already have a track record you may be familiar with. Watch the previously low-potential employees who have been promoted - your succession plan can always be changed as people in your organization/company grow. Those from outside your company, you probably have little or no knowledge of their track record at all so you need to find out as much as you can about them.

In ensuring a smooth implementation of your succession plan, some management positions can remain open for a few weeks or even months until the right person is found. At some point, you are going to need to elevate someone to your position.

One of the biggest challenges any organization faces is preparing for the future by identifying the leaders of tomorrow. The selection of the right individual(s) to take over the reins in a succession plan is key to your company's future. As the demand for effective managers continues to grow, baby boomer executives are in the process of retiring. This will bring a sharp decline of those who want to be in the executive suite and those who are qualified to be there.

Some forward-thinking companies have had succession management programs for years. They make it an integral part of their leadership development process. Your company may be given a timeline of five, or even 10 years for the succession plan to begin. Since change is constant, putting a succession plan in place establishes a process for the company to follow no matter who the heir apparent happens to be. Companies that do not conduct succession planning struggle to replace key employees who leave or die. At times, an interim chief executive may be put in place until the company feels it is ready for a permanent executive at the helm.

Remember that succession plans are ever-evolving. The first plan that is formulated may not necessarily be the best plan when the time comes to implement it. Be sure to review your plan at least once a year and change it as needed - people in your plan may have left the company, new qualified people may have been hired, the company direction may have changed, the company size and gross income may have changed, etc., etc.

Many companies hope that the right person is available for the promotion when the CEO position becomes vacant. Most of the younger managers are eager to move up the corporate ladder, but are not prepared to take on the additional tougher responsibilities. How well you plan your succession can determine the future success of the business you leave behind.