Transitioning an organization from one generation of owners to the next, from one President to the next or from one or many key managers to their replacements requires careful planning.
- Mindful preparation.
- A keen understanding of competencies, including hard and soft skills required in the roles.
- The application of exemplary communication skills throughout plan implementation and documentation of the knowledge transfer process.
- Capturing and retaining the greatness of what makes an organization exceptional and fiercely competitive in the marketplace insures its perpetuity.
Why do some organizations/businesses continue from one generation to the next?
Why do some businesses fizzle and die when the second or third generation takes over?
Here are some signs that business succession planning is needed:
- There are key players in the organization who have built a strong-hold of industry and customer knowledge. This knowledge has not been shared or passed on to others.
- Individual sales people know good customers well and have a close working relationship. Business ownership is distanced from those relationships.
- The business employs family members, typically children of business owners. A plan for appointing one of the children as the next CEO or President has not been formulated.
- The Company employs a non-owning President to run the business. However, a plan for determining how family members may be involved in the event of a death of the owner has not been detailed.