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Exiting Gracefully – Develop Your Successor
April 25, 2008
In my first two posts on exiting gracefully, Exiting Gracefully - Face the Fear and Exiting Gracefully - Do I Still Got It?, I indicated that you must face your fear and perform self analysis on the value that you’re still bringing to the table. Both of these issues have to do with you.
There are generally two components to a graceful exit – the first is through “getting out of your own way; and the second would be empowering yourself to step up and fill the void that will be left by your departure.
Successor development is a complex relational issue. The fundamental truth is that your successor in all likelihood has different…
- Attitudes regarding the business
- Values
- Ways of handling conflict
- Leadership style
- Communication style
- Work ethic
- Views about the business (they have so much working capital they don’t have to be tight)
Frankly, it’s understandable why a lot of entrepreneurs stay in the saddle until they die. They have little to no confidence in their successor, and the only way to build confidence in your successor is to give them a test run. Gradually, as you begin to make room for them, they have to be given opportunities to try their hand at the helm. It’s better if they can fall flat on their face while you’re still around and can coach them through their mistakes. If you’re proactive about bringing them under your wing, you can allow them to learn from you and minimize their mistakes. You will need to be intentional in instilling in your successor the leadership principles and decision making processes that have guided your success.
Most entrepreneurs have an intuitive way of making decisions and don’t take time to think through their unique processes. Downloading your intuitive sense of business to your successor is no easy task and requires you to do some things differently. When developing your successor, at some point in the process, you have to begin thinking of yourself as being in a partnership with them. In other words, they have to be included in the discussions, debates, and decision making.
In sum, exiting gracefully requires you to:
- Recognize and face your fear
- Honestly evaluate your continuing contribution to the business
- Proactively develop your successor
A word of caution: Don’t expect it to be a graceful process! This will be a true test of your maturity, wisdom, and the strength of your family relationships. Don’t be afraid to call on outside counsel for help.
Posted by Jeff Faulkner on April 25, 2008 | Comments (0)
