You may not be thinking about this today but one day you will be forced to!
Every business owner should have an exit strategy even if they have just purchased a business. Unless you know what your end goal is you will invariably fall short.
That is where Succession Planning comes in. An effective succession planning process will not only ensure that there will be a smooth transition of the management or ownership of the business but it will ensure that the eventual sale price is maximised.
There are a number of key areas to think about when considering your organisations succession plan:
Is transferring the business to a family member actually the right thing for the business?
What impact will it have on the business, its staff, customers and suppliers?
The plan must be linked to the company’s overall strategy, including vision, employee skills and quality of the workforce.
Review your current performance appraisal system to make sure it covers succession issues in each team. In order to have effective succession planning in each team the appraisal tools must be administered consistently.
Senior management and business partners must actively participate in the planning and implementation phases and be responsible for communicating it to their team.
A key manager should be responsible for delivery of the plan so that the tone is the same.
Consider linking the succession plan to a mentoring program for your successor.
Succession planning by its nature is quite holistic. It embraces career development skills and life management planning for individuals while simultaneously linking these with the employers overall business planning practices.
For large organisations, forming a steering committee will generally improve the company’s chances of overcoming the many transitional pitfalls of a succession plan.
If you would like to discuss the key elements of a succession plan in more detail please feel free to contact us.
Regards,
Michael Fingland
Managing Director
M +61 407 226 968
T +61 7 3229 5750
F +61 7 3229 5765 Level 5, 247 Adelaide Street
Brisbane QLD 4000
Managing Director
M +61 407 226 968
T +61 7 3229 5750
F +61 7 3229 5765 Level 5, 247 Adelaide Street
Brisbane QLD 4000
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