Close knit organizations or multi-generational family businesses tend to have some similar problems along with benefits. One of the issues, although often ignored, is a succession plan.
When businesses have a family-like management team, rivalries and personal agendas can often come into play. Also, the situations can be strained because no one wants to hurt feelings or offend.
Open communication must happen in order to have a good succession plan. There are legal and tax issues to be considered. If you put a plan in place, then succession can go smoothly.
Think ahead and follow these 8 steps if you have a family-owned business:
- Set Clear Goals
Don’t miss out on the opportunity to sit as a team and set clear, specific long (and short) term goals. When it comes to the future, you should leave no stone unturned. Iron out the details and get the goals and vision in writing.
- Come Up with Managerial Competencies
Establish agreed upon managerial competencies that showcase what’s important to your operation.
- Evaluate the Team
Create a system to evaluate your managerial team. Consider the skills of each team member and figure out which managerial competencies are their strengths.
- Review the Assessment
Be sure to review the findings of the assessment to learn more about each person’s strengths. Then work to tailor an individual development plan for each team member’s career.
- Legal and Tax Advice
Transfers of ownership and tax implications must be considered. Seek out counsel and get proper legal advice.
- Performance Management
Teach your managers how to hold their team accountable for their performance. They should be trained to seek specific outcomes which will help when it comes to a succession plan.
- Talk with Successors
Talk with your top team members about their career goals and the path they are on. Find ways to provide more training and help them develop even further.
- Hold on Tight
Do whatever it takes to hold onto your best people. Offer incentives and a great benefits package in order to keep your top talent.
When it comes to proper succession, timing is extremely important. Be wise when it comes to starting a transition. Move your managers up at a slow pace and give them the proper training that they need. With a close-knit group of people, be sure to communicate the promotion and ensure that everyone is clear on the role change.
By outlining a clear succession plan and implementing the set goals, you will help ensure the sustainability and long-term success of the company.
~ Written for us by our associate Gary Sorrell, Sorrell Associates, LLC. Copyright protected. All rights reserved