Dan Schneider

Time to Share Your Succession Plan? Use the C- E -O Technique!
November 20, 2007

No, not the Chief Executive Officer technique! That would be too close to running your family like a business and your business like a family. We’ve already talked about the problems that creates. So, what is the C- E- O technique for sharing your business plan?

C = Communicate.

Make sure the interested parties, family and/or business, have a shared meaning and a shared understanding of what the plan accomplishes – getting the business through the next generation. Because most of us are rationalizing more than we are being rational, the message needs to be marketed in order to be sold. 

Marketing the message requires Repetition and Relevance. Repetition to cover the who, what, why, when, where, and how. Relevance to cover the question that’s hard for them to bring themselves to ask you, especially in front of others – What’s in it for me? This may mean private conversations with some of the main players, family or business. Take the time. It can be the difference between appreciation and envy.

E = Early

“How soon should I start talking about this?” is a common question. Without being smart about it, the answer is simply “When it makes sense.” That means in the early days, you’re probably going to be talking about the concept and the responsibility that comes with it. As the successors begin to come into their own, you can get into the financial and business details.

If your successors are already up in years and, for whatever reasons, have moved into an entitlement phase, then the job’s going to be harder. Still it has to be done. It can never be too soon, but it can come too late to avoid more years of disappointment than you have time to reverse.

O = Often

Not every conversation with a successor has to be about the succession plan. But every time it makes sense to share your motivation and interest, grab the opportunity. Remember that most conflict comes from mismatched expectations. The more frequently you talk about what your efforts have been for and how you would like them to impact the future generations, the more likely the chances of the successors connecting the dots.

To successfully implement the C-E-O technique, we suggest you:

• Create a Family Council that meets at least annually and discusses:

  • Family Matters,
  • Family Development,
  • Charitable and Community Interests,
  • Individual Development, Goals, Lifetime Objectives

Posted by Dan Schneider on November 20, 2007 | Comments (0)