Succession is not easy and it is often very personal and sometimes it just seems easier to defer decisions. However, this can be fatal to achieving a successful outcome.
Being able to step away from a business that you may have spent your entire life building is neither simple nor easy, and can present a whole range of uncertainties. Add to that the challenges of introducing the next generation to the role of leadership and it can sometimes seem impossible.
Remembering why you are transitioning the business along family lines can provide a solid reason for proceeding but not necessarily the motivation to push hard and fast.
A succession process should be seen as the most important capital transaction in your business career. If you were undertaking the purchase of a significant business you would want to ensure it is done professionally and well. You would establish a clear process along a set timeline and expect the hurdles to be overcome and deadlines achieved. It’s likely a significant sum of capital is being invested and you would not want to risk that investment. View succession in the same way.
Establish a clear succession process with set dates for specific goals to be achieved, and work hard in delivering on those deadlines. Do not let the personal challenges that succession often presents hold you back. Do not keep sliding deadlines out or deferring decisions and actions. Treat succession with the seriousness it requires.
One of the key causes of succession fatality is to treat it as a family or personal project and therefore expect and excuse continuing delays. In these instances, succession never had a chance of being successful from its commencement.
Active Knowledge Question:
What processes have you put in place to ensure the ongoing confidence and support of your shareholder group?
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All the best in the success of your business,
Richard Shrapnel
