Succession Plan Check List – Part 2

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.

q  Stakeholder(s).

q  Market.

q  Employees.

q  Competitors.


When/How will You Communicate Your Plan?

q  Information minimizes confusions, distrust, uneasiness.





Examine Your Plan from a Strategic View

q  Strengths.

q  Weaknesses.

q  Opportunities.

q  Threats.


Create Measures to Evaluate/Provide Feedback

q  Concrete

q  Specific

q  Measurable


Create Development Program So Successor Doesn’t Begin “Cold Turkey” Passing the Reins

q  Have a transition period.

q  Mentor the new leader (s)

Determine Goals/Objectives


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.”