Misconception #2 – Succession Planning Means Retirement Planning
Succession planning often fuels a myriad of emotions.
- “No one is gonna push me out!”
- “Succession, that’s all about retirement, and I’m not going anywhere anytime soon!”
- “I like control; I’m not giving it up!”
While all of these are valid emotions and should not be minimized, succession planning is not about retirement or planning for death. A few more accurate ways to view succession planning are:
- Maintaining Control Planning
- Fulfilling Long-term Business/Family Dreams Planning
- Building Business Value Planning
How could this be, you ask? Let us explain…
Maintaining Control Planning
Succession planning empowers a business owner to establish a vision and put the processes and people in place for it to be carried out. This is a “control freak’s” dream—the ability to develop a culture that will last beyond your involvement! Ok, that last statement may have touched on a sensitive mortality button, but just think about it; by focusing on the 10 key areas of the Succession Matrix® today, you are building a foundation of success and inspiration for multiple generations to come.
The succession planning process provides you with the opportunity to define your role in the business that best fits your interest level. Today you may be highly interested in the operational details; however, as your interests change, you may want to move into a new role. Perhaps one where you are mentoring a new leader, developing other businesses or areas of business growth within your current business.
Ultimately, succession planning keeps you in the driver’s seat for as long as you want, and it allows you to survey the landscape to determine what is best for you, your business and family.
Fulfilling Long-term Business-Family Dreams Planning
Confusion often comes before clarity. In order to have either, you need to have the time and space to reflect upon where you have come from, where you are, and where you want to go. Succession planning provides you with the opportunity to define what success means to you now and your vision for the future.
The operational weeds can cloud your t thinking, not allowing you to look and dream about the future. Developing and communicating a vision is critical to developing a foundation for success. If your family, key managers and employees have no idea what they are working toward, they can get lost in the woods and your opportunity for success and growth end up being extremely minimized.
Building Business Value Planning
Business succession planning is a transitional, strategic process that focuses on the successful long-term continuity of an operating business through the next generation of owners, leaders and managers. This process is highly dependent upon addressing the interdependent, long-term performance factors of the Succession Matrix.
As you review the factors of the Succession Matrix in the image provided, you may notice that the factors included are not only critical to the succession planning process, but are also essential in building business value. With that in mind, what if we change the term “Succession Planning” to “Building Business Value” planning? Would your reasons for avoiding succession planning fade and would the topic move up on your priority scale? Would you allow potential fears get in your way of reaching your business goals?
What are the issues impacting the value of your business?
Contact us to schedule a Phase I diagnostic assessment of your business to find out.