Handover Takeover (HOTO)

What is Handover Takeover (HOTO)?

Handover Takeover, commonly abbreviated as HOTO, refers to the structured process of transferring duties, responsibilities, and assets from one individual to another within an organization. It’s a critical practice that comes into play in several scenarios, ensuring a smooth shift in roles and responsibilities.

HOTO is a critical process in managing assets, especially IT assets. While managing the assets, it requires a structured process of transferring responsibility, ownership, and accountability of physical assets from one employee (or team) to another, typically during transitions such as employee turnover, role changes, or project completions. The HOTO process ensures that assets are tracked, maintained, and properly transferred between parties, and that no assets are lost, misplaced, or misused.

Scenarios Requiring a Formal HOTO Process:

• Termination of Employment: In cases where an employee’s relationship with the company ends, whether due to resignation, dismissal, or other reasons, following a well defined HOTO process is crucial. This helps avoid disruption in operations by ensuring a well-structured handover of tasks and assets. There should be a process to ensure the final settlement with the employee is not executed until all assets are handed over. Note that the information of assets allocated to the employee is very critical and it should be properly documented to ensure there is no conflict.
• Leave: When an employee takes leave, especially for an extended period or under circumstances requiring them to step away from their responsibilities, a formal HOTO process is essential. This ensures that someone else can carry on their duties seamlessly and for this, they may need access to the assets of the employee going on leave.
• Joining: When a new employee joins an organization, it involves transferring key knowledge, responsibilities, and tasks from the outgoing employee to the new hire. This process also includes managing the transfer of company assets, such as equipment, tools, and access credentials, ensuring everything is properly handed over for the new employee to perform their role effectively and without disruption. Therefore HOTO is essential for this smooth transition
• Transfer: Employee transfers within an organization necessitate a proper HOTO process. The employee being transferred may be a custodian of assets at the location from where he/she is transferred. If the assets are not properly handed over to the replacement, it could become a cause of conflict in future and the control over asset may be lost. Eg. a branch manager or an infrastructure manager who is the custodian of all branch assets should hand over the assets properly at the time of transfer.
• Allocation and unallocation of assets in normal course : The HOTO process is essential when assets are allocated to an employee for performing their duties, and once those duties are completed, the assets are returned and subsequently unallocated.

Challenges in Smooth HOTO Process

While the concept of HOTO seems straightforward, it’s not always smooth sailing. Some factors can complicate the process:

• Abrupt Departures: Employees sometimes leave their positions suddenly, without serving notice as required by labor laws. Such abrupt departures can disrupt the HOTO process with respect to asset management.
• Emotions: Terminations or resignations can be emotionally charged, making it challenging to conduct a organized handover of assets, responsibilities, documents.  Hence, it is very important to ensure irrefutable documentation.
• Communication Breakdowns: Effective communication is critical for a successful HOTO process. If there is a lack of communication between the outgoing and incoming employee (or between departments). Miscommunication regarding asset allocation can also result in lost or misused resources.
• ​Asset Tracking and Management Issues: Inadequate asset tracking systems or manual processes can complicate the tracking of company assets during the handover. If asset allocations are not properly documented, it can be unclear which assets are assigned to whom, or if they have been returned in good condition. It also leads to resource shortages or financial waste. (Know More about Asset Tracking and Management)

Why a Formal HOTO Process is Important

• Continuity Management: A formal HOTO process includes an inspection of assets at the time of handover to check for damage, missing components, or outdated equipment. By inspecting assets during the handover, organizations can ensure that all equipment is in working condition, reducing the likelihood of operational disruptions caused by faulty assets.
• Productivity and Performance Maintenance: When new employees are onboarded, they often require specific assets to perform their roles (e.g., laptops, software, security badges). A formal HOTO process ensures these assets are provided in a timely manner, preventing delays in their ability to start work.
• Staff Engagement: A formal HOTO process ensures that key assets and tools needed for day-to-day operations are transferred smoothly and without interruption when employees change roles, leave, or go on leave. This helps avoid disruptions caused by delayed or incomplete handovers.
• Customer Retention and Satisfaction: Customers often build relationships with employees. A poorly managed transition can lead to customer dissatisfaction and attrition.
• Loss of Critical Information: Employees hold valuable information, including internal processes and patents. Without an adequate HOTO, this knowledge can be lost forever. When an employee leaves or transitions to another role, their access to company systems, data, or physical spaces must be revoked to prevent unauthorized access to sensitive information or assets.

Have a look over the seamless Hand-Over Take-Over Process for your organisation with AssetCues.

How to Properly Manage an HOTO Process?

1. Preparation

• Inform all stakeholders (HR, managers, IT, etc.) about the transition well in advance.
• Create a checklist for tasks, assets, and responsibilities to be handed over.
• Schedule time for knowledge transfer, shadowing, and training if needed.

2. Knowledge Transfer

• Document key information: Create a comprehensive handover document outlining tasks, ongoing projects, contacts, and key responsibilities.
• Ensure access to resources: Share necessary documents, files, and software credentials with the incoming employee.
• Shadowing: Allow the incoming employee to shadow the outgoing employee to observe key processes and workflows.

3. Asset Handover

• Maintain an accurate database of asset allocations – The company should maintain an accurate database of what assets are allocated to whom. There should be evidence of confirmation from the employee.
• Conduct periodic self certification – After allocation, perform periodic self certification to get confirmation from the employee that he/she is still in possession of the asset. Photograph and condition of the asset can be demanded to be updated in every self certification.
• Return and inspect physical assets: Ensure all company property (laptops, phones, keys, etc.) is returned and in working condition.
• Transfer digital assets: Reassign software licenses, transfer files, and deactivate the outgoing employee’s accounts.
  (Get into depth of Asset Handover / Asset Assignment)

4. Security and Compliance

• Revoke access: Disable login credentials, email accounts, and access to systems or physical locations.
• Ensure data security: Securely wipe personal data from company devices and archive any sensitive information as needed.

5. Formal Handover Meeting

• Review tasks and expectations: Meet with both outgoing and incoming employees to clarify any final details.
• Address questions: Ensure the incoming employee has all necessary information and feels confident in taking over the role.

6. Follow-Up

• Post-handover support: Schedule check-ins after the transition to provide ongoing support and resolve any issues.
• Feedback: Gather feedback on the process to improve future handovers.

7. Documentation and Improvement

• Document the process: Review the HOTO process and refine it for future transitions.

Experience a smoother HOTO process in your organisation – Schedule a demo with AssetCues!