Successful Succession Planning
Are you beginning to consider retirement? Are you thinking about selling your business?
Successful successions and transitions begin three to five years out and involve more than simply the business and financial elements of the deal.
As Boomers approach retirement, we are experiencing a major transfer of wealth and senior leadership. Yet according to the Harvard Business Review, almost two-thirds of large U.S. companies do not have a formalized succession plan in place.
Every successful succession/transition involves attending to several moving parts. At a bare minimum, a successful succession plan includes:
The Financial Plan
A successful financial plan is two-fold: It ensures that you the seller will be justly rewarded for the value of your business while the new owners will have the resources needed for the business to thrive.
In the best successions, talent from within the organization is nurtured over time to enable seamless operational functioning through the transition.
Preparing the workforce for the inevitable change can stem the tide of unnecessary conflicts that disrupt work efficiency, job satisfaction, and cultural harmony.
Designing Your Future
Equally important is ensuring that both the outgoing and incoming leadership can enter the new phase in their lives with enthusiasm and confidence. Finding a fair financial solution is only one of many issues to be addressed and not necessarily the most important.
- For the outgoing owner, continuing to be active and involved in life/work in ways that bring satisfaction, meaning and purpose is critical to health and well being.
For the new owner/leader, this is an opportunity to make his/her own mark on the company.
For each of them this is an opportunity to add significantly to their LifeWork portfolio.
What are your criteria for a successful transition?
Are your people being developed for future leadership?
What do you need for your own well-being?
Are your plans realistic?
Do you have the time, objectivity, and expertise to carry out your succession plan?
According to Forbes, most C-level executives surveyed gave their succession planning processes a C or D. Would you accept that level of performance anywhere else in your company?
Marigold will help you raise the quality of your succession planning to ensure the future success of your company and its key stake holders.
Download our Succession Planning PDF here.
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