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Something Worth SharingThe Love / Hate of Succession Recently, I was very grateful to be invited by a contact of mine to be a returning guest panellist at his organisations annual conference. The theme for this year was going to be “Shaping The Future” - and my ‘focus’ within this was ‘succession’. I agreed without hesitation. But if the truth be known, I have a love / hate relationship with ‘succession’. I know first-hand the importance of having plans, but I also know all too well how the word ‘succession’ - and its meaning - are so often completely misunderstood. To help explain, let me share with you a list of growing ‘succession myths’ with you: Succession is the answer
No. Replace the concept - and whatever you think ‘succession’ is - with ‘future-proofing’ - and know you are never done because the future is never done. Succession is just for family businesses
There are many things that family enterprises can teach us and the importance of future-proofing your organisation and building a robust transitioning strategy is one. We see professional firms, public companies, charities, sports teams, schools, public sector organisations and more all struggling with precisely this. Everyone needs to future-proof regardless of vision or organisation type. Succession is tomorrow’s problem
Putting the subject on the back burner believing we don’t need to worry about it because there are years to plan, is dangerous. You risk the unexpected catching you out – in extreme cases, the key family and business person being taken seriously ill or passing away. It is vital to always be considering the “what if…” question. All business leaders, even as a 30 something-year-old founder of a new business, have a responsibility to think about this from day one. It’s vital to take time to work on the business, as well as in it. Succession is about appointing the next leader
Nope. Succession is not about passing the business to one person but considering holistic future planning and protection. It’s vital to consider ownership, business, individual, family and wealth needs and wants. The best succession strategies look at skills, market conditions, opportunities, investment, R & D, evolving society, technology etc as well as the family role and the wishes of those impacted by the business. We would rather have people focus on future proofing and transitioning. Succession = one in and one out
I would also ban the term retirement, it no longer means "pipe, slippers and death". Transitioning is about having a developing strategy to carefully evolve the roles played for new and existing people at all levels of the organisation. Successful processes ensure that there is room for the incumbent generation as well as the future generations – both are just as vital. Designing the strategy allows everyone to influence and understand their next phase. This process should be gradual and done with support for all and open communication. Succession is a big deal with a plan
No. Succession - or future-proofing - is a living breathing process of transferring knowledge, experience, values and much more – not just to a newer generation but also up to the incumbent generation. We should never stop learning and it’s not about creating a one-off plan. It’s a process with supporting strategy which should be reviewed and developed on a continual basis. From founding generation to multiple generation, each should be adding value as they pass it on and this should be part of the discussion. Succession is the leader’s job
It’s rare that one person deciding on a how the future will be, especially when they won’t be part of it, works well. It is very much an inclusive process that should involve all those that influence and are influenced by the business and future decisions. It is a process - and one that is ongoing. It’s vital to have buy-in from everyone, or at least involve them in the process as this is a huge opportunity to consider ideas you’d not thought of and also to share the burden and responsibility. This approach allows relationships to be strengthened rather than undermined, and opportunities to be seized. Succession is a family only matter
No. Traditionally family enterprises would keep plans to themselves. Employees aren’t daft, they know that the MD or CEO is 80 and nothing has been done to ensure longevity and the future – and so guess what… they’re looking for new jobs. The best businesses with successful transitioning strategies involve their - often loyal - employees and certainly keep them informed to reassure them. A succession strategy is good enough
We always recommend that any future planning and strategic development is supported by suitable protection such as a family charter or constitution and Shareholders Agreement. Creating the rules to play by is simple when everyone is sharing the vision and on board. When things go awry or take you unawares, that’s when documents and protection can be so useful. Believe me, we see so many examples of this happening even for the closest, most loving families. What ever you think 'succession' looks like, have you really considered the future for you, your family and your organisation?
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