Dan Schneider

How to Boost the Probability of Succession Success: Part II-Plans and Processes
September 24, 2007

As I discussed in my prior post, How to Boost the Probability of Succession Success, “the interdependent critical issues that impact your business legacy can be put into four broad categories: People, Plans, Process, and Profits. I discussed People, so now let’s look at Plans and Processes:

PLANS

Your plans don’t have to be perfect to be solid. However, they must be implemented to be effective. Entrepreneurs believe they can have impact, so they have a tendency to take control and make “things” happen. 

Increased Probability of Success Rule #2: Most people don’t aim too high and miss. They aim too low and hit.

So, if you haven’t formalized your plans, this is a good time to start. Financial Plans, Strategic Plans, Successor Development Plans are the salt of your succession success. Make them large.

PROCESSES

Business structuring, family/partner dynamics, family/partner governance, and successor development should be outcome driven. Each of these processes should be focused on the outcome of succession continuity through the next generation. That means they have to be in alignment and support of the plans, formal or informal, that you use to guide your business efforts. If they’re out of alignment, you’re in for a bumpy road.

Increased Probability of Success Rule #3: Make the plan drive the process.

In far too many cases, just the opposite happens. The method becomes more important than the process and stunts personal, family, and organizational growth.

Posted by Dan Schneider on September 24, 2007 | Comments (0)