Succession Plan Check List – Part 2
In Succession Plan Check List – Part 2, we continue to develop a step by step list of things that are need to complete your succession planning.
Develop a Time Line with Key Steps
q Keep focused on the ultimate goal — the perpetuation of your business and personal financial security.
q Determine If Owner/Founder Goals Differ from Business Goals
q Does the business drive the owner or does the owner drive the business?
Analyze Owner/Founder’s Personal Assets, Estate Plan, Life Mission
q Do individual goals clash with family or business goals/needs?
Be Mindful of the Possible Outcomes of Your Plan
q Who will be affected — to what extent?
q Family members.
When/How will You Communicate Your Plan?
q Information minimizes confusions, distrust, uneasiness.
Examine Your Plan from a Strategic View
Create Measures to Evaluate/Provide Feedback
Create Development Program So Successor Doesn’t Begin “Cold Turkey” Passing the Reins
q Have a transition period.
q Mentor the new leader (s)
Do you want to give up control?
Can you continue to manage daily operations?
Determine What is Best for You and the Business
q Is it time to “pass the baton?”
q Are you and/or your business being hurt by remaining on?
Examine Goals/Objectives of Family Members
q Will they continue to wait for “their time?”
Avoid the Pitfalls
q Family tensions.
q Lack of personal financial security.
q Selecting an inappropriate successor.
q Setting up the successor to fail.
What to do When It’s Time to Move On
q Solicit objective input from advisors, family, business associates.
q Set up criteria for successor.
q Communicate decision to all parties.
q Create clear agreement with successor to address steps, tome lines, financial considerations.
q Begin relinquishment of control.
q Set up program to mentor, train, educate successor.
q Implement the financial agreement with the successor.
q Turn business over to successor.
q Create vehicle to allow you to “keep in touch.”