What does "succession planning" primarily involve?

Succession planning primarily involves the strategy and process of preparing for the transfer of ownership and management responsibilities in a business. This ensures that there is a clear plan in place for continuity, especially as key stakeholders approach retirement or exit the business. Effective succession planning helps to mitigate risks associated with leadership changes, maintain operational stability, and ensure that the business can thrive even after ownership transitions.

While the other options touch on important aspects of running a business, they do not focus on the core purpose of succession planning. For instance, preparing for an organization's expansion is more about growth strategies rather than the continuity of leadership. Setting investment goals emphasizes financial objectives without addressing the leadership structure, and developing marketing strategies is focused on promoting products or services, which is separate from the process of ownership or leadership transition. Therefore, the primary focus of succession planning is distinctly on the planning for ownership transfer and ensuring that the right individuals are prepared to step into leadership roles.