 |
|
|
|
|
|
|
||||||||||
|
||||||||||
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|||||
|
SUCCESSION PLANNING The Situation: The business has lost its edge You learn or perceive that opportunities to grow the business pass by unnoticed, investment in maintenance and technology drops, and employees are not sure just what to do. Company profits begin to slide. Customers and suppliers wonder who will be running the show and if the relationship really needs the attention it was given in the past. The company just seems to survive. Enthusiasm wanes. Relatives in the business are often the cause of strife and stress. Their roles are confused and confusing. The Problem: No one knows what will happen when the owners leave the business The client is getting older. Sometime soon transferring business and management ownership must be addressed. Yet it does not happen. It becomes more and more difficult to know what to do because people are not sure just what changes will occur without the owner there. Time is wasted as people begin second guessing or waiting for the owner to express his or her plans. Doing business takes a back seat to wondering if there will be a business. The Remedy: Succession planning This is a process that helps the owner identify the issues involved in transferring ownership and management of the business, and lays out a plan for the orderly transition of authority and ownership. The process also addresses the short-term problems that have crept in because of the lack of succession planning, and rebuilds enthusiasm in the future of the company. The Approach: Succession planning to achieve personal goals We facilitate the development of a vision of how succession is to occur and the results that are to happen. This vision is integrated with the personal goals of the owner, which creates buy‑in for the client to carry out the plan. This is accomplished through interviews with the client and other key individuals. Sometimes you might facilitate a retreat or workshop of key decision makers. Using the owner's vision of succession, we work with management to assess the current situation as it relates to accomplishing the vision. This happens through more interviews, observation and review of documents. In many cases, we may have address the appropriate personal and corporate tax issues. After the initial findings are agreed to by the owner and management, we work with the owner and management to develop action programs to meet succession goals. We then meet routinely with the owner to monitor progress and results. Benefits: Succession is planned and managed § The owner's future interests are protected. § There is a commitment to the business by employees and relatives in the business. They become recommitted to making a difference and being part of something that is growing and healthy. § The present owner is able to make decisions about the future with confidence. Decision-making is easier for everyone as the vision becomes clearer. People start working more effectively. § Opportunities that fit in with the future vision are seized. Employees and management work more earnestly knowing that the intent is to have the company succeed beyond the life of the owner. § A more effective “can do” attitude develops as people consider different alternatives to achieve results. Investments in the future of the company are made with purpose. § The owner, relatives, management and employees pull together as a team. Level of Effort: This depends upon the complexity of the company and the owner's situation, and the number of key executives. A small company could require four to five consulting days to identify a vision and to map out a basic plan. The entire process described above usually requires ten to twenty days for a single line company to identify a succession vision and resolve the more critical planning issues, but it could take more. How to Resolve the Succession Question: Over several conversations with the owner, we determine what expectations the owner has for the future of the company. We probe for the existence of personal and corporate factors that might make these expectations unrealistic without some explicit planning. How does the owner expect to deal with retirement? What plans are being made to survive new markets, technology, changing customer needs, and government regulation and intervention? Who are the executives in the wings? What role will relatives play in the future of the company?
|
||||||||