[vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”grid” oblique_section=”no” text_align=”center” background_color=”#001932″ css_animation=”” el_class=”about-us-bottom”][vc_column][vc_column_text]

Effective planning for effective results

[/vc_column_text][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”grid” oblique_section=”no” text_align=”left” css_animation=””][vc_column width=”2/3″][vc_column_text]If you’re a business owner and are thinking about retirement, then it is never too early to begin thinking about your successor.

What is the difference between Succession Planning and Exit Planning?

Succession planning involves preparation to identify, train and transfer the leadership and management of a company to another person or team of people.

Exit planning develops a strategy where the goal is to transfer the company and its ownership to another person, team or entity, or to liquidate

Often succession planning is desirable for a small to medium sized business owner or for those with a family business.  The owner may want to continue to earn from the business as part of their retirement plan.

Timing is important as an owner may be forced to leave the business prematurely through unexpected circumstances.  If the business is owned by more than one person, ensure the buy-out agreement is in place and understood by all parties.

Develop a Succession Plan

There are several steps to structure an effective succession plan. First, develop a plan which will identify succession candidates, often a family member or long-term employee.  As a business is often a large asset of a owner’s estate in the form of business assets and revenue stream, care must be taken to plan for uninvolved family members.  Having a third-party valuation done on the business is an important step in preventing potential family disputes.

• Identify the role of the current leader(s) and attach a desired timeline.
• Identify the major challenges the business currently faces, or that it may face upon the departure of the current owner, such as, loss of customer loyalty or financial background of potential candidate
•  Identify and create a detailed analysis of the skills and competencies required by a successor to effectively continue to run the business. This analysis should include hard and soft skills as well as validating educational achievements.
• Consider high potential candidates including family members and long-term employees that may be groomed to assume the leadership role; these candidates will have proven strengths and weaknesses. Alternatively, it may be necessary to find an external candidate.
• Capture the knowledge that individuals possess before departing the organization.
• Engage in transition tactics such as introducing vendors and customers to successor, invest in training courses, mentoring, job shadowing for leadership role and department level roles
• Measure progress. Set up a timeline to review progress with the successor.  Be their mentor; allow them to freely ask questions and learn from your experience.

[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_column_text]Our Services

• Process Improvement
• Workflow Management
• Team Optimization
• Build a Remote Team
• Succession Planning
• Talent Acquisition

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Let’s talk

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