Succession Planning – Building Value

May 1, 2008 | Link This | Email this | Comments (0)

With an understanding of the 10 Steps to the Development and Implementation of an Exit Strategy, we can address the interdependency of time to the development and implementation of an exit plan.

The Most Responsible Time Line

An assumption that anyone has the security of a long-term hold on leadership and control creates instant vulnerability. Therefore, the most responsible time line for establishing an exit strategy is to assume that there is no time available. Now is the time to confirm a contingency exit strategy that identifies who should be or could be a successor. Irrespective of age or time on the job, every business leader has a stewardship responsibility to address the contingencies of his or her death or disability....Read More

April 30, 2008 | Link This | Email this | Comments (0)

The “Exit Strategy Dilemma” acknowledges the challenge of patronizing the needs and goals of both current business owner and the business. Time line appears to be the hinge pin of this dilemma because the owner wants to keep their options open and businesses need to address strategic needs, issues and vendors.

The circumstances of the business can impact the amount of time needed to pull off the succession strategy. Reciprocally, the time available commonly dictates the practical steps of an exit strategy. Just “getting the hell out of Dodge” and tossing the keys to a family member or the senior manager is not a significant challenge. However, transferring leadership and management control in a manner that has optimum impact on both the owner and the business re...Read More

April 28, 2008 | Link This | Email this | Comments (0)

Exit strategy directly impacts a large group and indirectly impacts everyone associated with the business. When the subject of exit strategy is broached, antennas around the organization and within the family go up. The retirement plan of a business owner is a very important subject to family successors, key managers, vendors, creditors and Board members.

Carrying on dialogue on this succession issue and achieving traction are two strikingly different goals. Anyone who has ever been associated with an innovative, ambitious, driving business owner recognizes pulling off an exit strategy or even making substantive progress is a formidable challenge. These dynamos are often caught in the Exit Strategy Dilemma.

On one hand, the owner can be relying upon the business for fun, fellowship and stimulation because he/she doesn’t have other ...Read More

April 2, 2008 | Link This | Email this | Comments (6)

How do we identify management terrorists, the vampires of organizational synergy, and stop the frustration, befuddlement and mediocrity?

Fortunately, there is a simple answer: demand integrity.

This means that first you must have integrity. So, if you are not walking your talk, work on yourself before you start picking pepper out of someone else’s cow-pie. You could be the role model for your own dysfunction.

If you are confident about your own integrity, the next step is to spend sufficient one-on-one time with your key managers to find out who they are. Complacency is the playground of the management terrorist. If you are not motivated enough to personally engage your key managers and deal with what you discover, don’t complain about performance mediocrity or an only-the-strong-survive, dog-eat-dog culture.

April 2, 2008 | Link This | Email this | Comments (0)

Key managers are instrumental to your current and ongoing business success. They are the organizational pillars that current owners and future successors will depend upon to oversee the drive to achieve strategic succession goals. Unfortunately, this drive can often feel like a grind because performance does not match expectations.

A significant part of this frustration is due to a disconnect between your long-term strategic goals and buy-in by your key managers. On the outside they are giving you a thumbs-up, but on the inside they do not agree with your vision. We recognize these managers as “Management Terrorists.” Achieving business succession goals and building business value requires (not just includes) the identification, reconciliation and/or removal of these managers.  

Identifying Management Terrorists is a formidable challenge bec...Read More