Succession Planning for most founders/owners of companies is something they’d rather not think about. It’s human nature to avoid mortality and planning. But by doing so, it creates doubt in many areas of a business, not the least of which is with the employees. Leaders who avoid this responsibility make it more difficult for the organization to carry on.
“Entrepreneurs who create and build businesses from scratch are nothing if not street smart. They know business, as well as the trends that impact businesses. I am not certain that all successful family business founders know this statistic: most (60-70%) of all family businesses that lose a founder to retirement or death are sold or liquidated — i.e. not passed on to the founder’s heirs.
Many theories attempt to explain why entrepreneurial ventures fail to thrive under the stewardship of a founder’s heirs. Most pin it on the loss of founders’ charismatic leadership and their personal devotion to the business. Assuming this is so, the fact that so many founders fail to prepare for the life of their “other child” — the business — after they are gone is very unfortunate.” Source: Google Reader (11)
Nothing is ever easy but you can simplify the process by following these guidelines:
1. Define Success
2. Identify Potential
3. Develop Talent
4. Measure Progress
5. Communicate
Keeping It Simple is the first step to a successful succession plan. If this makes sense to you and you’d like to learn more, please contact me by replying to this post or hit the Contact Us tab.
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