Dan Schneider

The Nike Response to Challenge: Just Do It!
September 26, 2008

Nike endorsed Tiger Woods for a very simple reason. He takes command of a situation and gets the job done. In the previous two articles, we talked about “triggering events” – those circumstances in life that make us see the need to take action(s) that we have been putting off for whatever reason(s).

Let’s go back and look at your responses to the Quick Test in the last blog, Triggering Events: What Moves Us To Take Action. If you responded with all “Agree” responses, then we say “Congratulations!” You’re probably well on your way to succession success. Keep up the good work. If you responded with “Disagree” or “Not Sure,” then here are our suggestions for each question.

My family understands what direction I want the business to take, now and in the future.

Get your family and/or your partners together and share your vision with them. As obvious as you think your intentions may be, most of us need to hear the words. Communicate early and often through the Family Business Council or a Partnership Forum to connect the dots between the past, present, and future.

My managers can execute the business plan in my absence.

First, make sure you’ve got a documented business plan. Too often, a business is little more than a “SPOT” – a strategic plan on the top shelf. If that’s what has happened to yours, take it down, decide whether or not it is still appropriate, and either update it or begin from scratch to create something that is relevant and can be implemented.

If the plan is ok and management talent is the issue, then help your people develop the talents and skills needed to keep the business moving in the right direction – the direction you want it to go. If you haven’t invested in the people who put your assets to use, you are missing the boat.

My successor is identified and ready to take the reins.

If you intend to keep the company in the family or within the same group of shareholders/partners, then you’re going to need a successor . . . someone who is ready, willing, and able to provide the direction and make the decisions necessary to grow the business. If there’s not someone available who fits that description, get your recruiting campaign in high gear. Identify the characteristics you want in your replacement and find that individual. Make it worthwhile for her/him to stay with you while the next generation decides how they want to interact with the business.

My personal financial planning optimizes my estate value.                       

Get a second opinion. Top notch people can still get caught in personal opinions and biases that reflect the best of the old ways rather than what is currently available to you. You are not being disloyal to your advisors by having an independent audit or review. You are putting the best interests of your heirs first.

My family can function interdependently if I am not available.

Check out what my colleagues (Dave Ciambella, Jeff Faulkner, Loyd Rawls, and Ricci Victorio) have written about Family Business Councils. Interdependence takes years to develop, so the sooner you begin, the quicker everyone can get there.

I have communicated in words and actions the values that are important to this business.

The family (partners, business associates, etc.) may not have moved from dependence to independence to interdependence yet. That may be a result of your words and actions leading them to believe you don’t value that growth and maturation. Examine your own actions and words, and then make sure they’re consistent.

There are lots of steps involved in implementing a focused, balanced, and disciplined approach to having your house in order. There are lots of reasons (rationalizations) for not doing it. Do it anyway.

Posted by Dan Schneider on September 26, 2008 | Comments (0)