Succession planning is one of the most important points in the life of a company.There are a lot of opportunities for missteps when a new leader takes over so here are five things to consider when making your leadership transition plans.
Leadership Transition Plans
It’s Never too Early to Start – Smooth leadership transitions take time and planning, particularly if you are grooming someone internally for the top position. If you are looking to sell the company or hire an outside person to run it, it takes time to find the right match. Start thinking about the transition several years out if possible.
Include the Right Parties – Include the senior leadership team in the discussion of how and when to make the transition. It is important to take their opinion into consideration when making a decision of this magnitude. If this is a family run business, include all the family members to avoid hard feelings down the road.
Talk to Your Outside Counselors – Bring your attorney, tax advisor and banker into the discussion. They can be invaluable in helping you consider all the legal, tax and financial implications of transitioning leadership.
Be Brutally Honest – A heir apparent may be expecting to take over. This may be a child or a long-time, loyal employee, but if that person doesn’t have the skills to lead the company forward, have an honest conversation about it. If that person could take the reins with some learning, be honest about that, too, and put a plan in place to build his or her skills.
Onboard the Successor – The work isn’t done once a successor is named, it is only the beginning. The senior managers and the board of the company should be prepared to bring the new person up to speed and expect an educational curve even if this is an internal person or someone from the same industry.
Communicate, Communicate, Communicate – A new leader doesn’t affect just the senior managers or board. Customers, employees, vendors and community members all have an interest in the transition. Work with your HR and PR folks to put together a communications plan to keep all your stakeholders apprised of the process and to introduce the new leader.
If we can help with your leadership transition planning or other leadership topics, please contact us.
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