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Letters to My Brother – It’s Time for Me to Get Out
October 6, 2008
I’ve posted before about sibling partnerships. I thought it might be helpful to see that what I write about is not simply theory, but reality. So, I’m opening up the vault of actual correspondence with clients who are in sibling partnerships.
“Dear Brothers,
I’ve been taking a hard look at myself, our relationships, and the state of the businesses. I’m nearly 56 years old. I am in reasonable health now, but I am overweight, I don’t eat right, and I smoke too many cigars. I could be struck by some dread disease, become seriously ill, or suffer a worse fate. I want to enjoy the fruits of my labor before I am unable to do so. So, I need to devise an exit strategy.”
Effective sibling partnerships will not happen by default and, as I’ve shared before, one of the components of an effective partnership is having an agreed upon Exit Strategy. Exit Strategies have to be created with three scenarios in mind. I call them the “drop dead” plan, the “wheelchair” plan, and the “ride off into the sunset” plan. All three of these contingencies must be addressed to have an effective exit strategy.
There are two key components of an exit strategy: 1) the current leader must begin to step away and let go of the business control reigns, and 2) the future leader must begin to step up and take hold of the business control reigns. This is much like a relay race and there are many intervening variables that can make for a poor passing of the baton.
The most critical thing to agree upon in this process is what your roles and responsibilities will be and then to stick to it. The roles and responsibilities will include your actual position and position description. It will include how you will make decisions together, how you will manage problems and resolve conflict, and how you will communicate. It will detail how you will hold one another accountable. In essence, you will need to define the parameters of your relationship and how you will lead together in a manner that prioritizes your relationship above the business. After all, there is no business gain worth a family loss.
Devising an effective exit strategy long before it’s time as a part of your strategic planning will promote family harmony and improve the odds of the continuity of business success.
Posted by Jeff Faulkner on October 6, 2008 | Comments (0)
