Succession can be a long and at times challenging road to tread, but there is nothing worse than having invested so much into your succession process to falter at the final steps. To have failed to build the necessary relationships and capabilities for the transition to occur or to be unable to take that final step of real transition.
Active Knowledge Question:
Is everyone involved ready for and capable of transition?
From the moment you commence your succession process, the end goal is for an efficient and effective transition. All the work in between is to ensure that it is undertaken with a view to the future, equity and fairness, harmony and to clear goals.
But it requires the building of momentum towards that transition, and no one should underestimate the challenges in both stepping aside and stepping up for both generations.
Danger 12/12 – Falling Off The Cliff
At the final ascent (the execution of the succession plan), focus and endurance are not sufficient to deliver on the final plan.
All of your succession plans are completed and everyone, as best they can, are on board and ready to proceed. All the necessary advice from lawyers, taxation advisors, bankers, etc. has been gathered.
It is now necessary to make it all happen, to bring it all about and this is possibly one of the most challenging parts of the succession process.
It’s now real and not just talk. You now actually need to move forward and allow others to take over decision-making and other rights in relation to your business.
Do not underestimate the difficulty that this may cause – many succession processes have fallen apart as sufficient effort and resources were not deployed at this stage. It will require focus and a real diligence in ensuring not only that all the paperwork is completed and put in order, but also that relationships are sustained and built, that decisions are enacted and that everyone steps up to their new role.
Often the ability to release is the most difficult and that through habit, reluctance and a failure to properly define the future, the exiting generation simply keep doing what they have always done, and the new generation is blocked.
A very clear plan with each step mapped is essential as is also a clearly articulated future for the exiting generation that is enticing, created during the succession process and is one of the first actions executed. Very simply, ‘don’t expect me to leave if I have nowhere to go’.
Quotes From Travellers – Greatest achievements:
“The establishment of governance bodies within the company and the family, for making decisions and setting goals by area, as previously decisions were made by one person. Currently they are consensual which has led to a higher level of participation, involvement and empowerment of administrative actions that are performed to achieve the objectives” – From A Family Business in Dominican Republic
“Everyone is happy” – From A Family Business in Sweden
“Identification of the best person to head the flagship of the company” – From A Family Business in India
“All family members feel good about it. Parents feel secure in retirement. Successor feels optimistic and confident” – From A Family Business in Canada
“Successful handover of top position and accompanying increased sales” – From A Family Business in Zimbabwe
“100 years of successful transition as 16 family members have left the business and 3 non-family members” – From A Family Business in USA
“Harmony between different family members” – From A Family Business in Ireland
The Twelve Dangers
There are many dangers that the traveller must be wary of and keep a close eye out for. Not only must they avoid these dangers but be proactive in protecting against them.
Part 12 of the series: 12 Dangers To Be Avoided In Succession
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All the best in the success of your business,
Richard Shrapnel
