One of the biggest burdens weighing upon business leaders is whether or not their successors will be ready and capable leaders for the next generation. No matter how intelligent, educated, progressive or firm, it is likely there will be some doubt and even more likely some challenges as you work towards preparing the next generation to lead. After many years of working with families, management teams and their business successors, we have put together a Successor Development Checklist to help clarify which factors are most important in knowing whether or not you have positioned your successor and team for the next generation.
Successor Development Checklist
Rate from 1 to 5, with 1 being the least accurate and 5 the most accurate
______ We have a documented and well-communicated criteria defining the career path to be considered as a potential successor.
______ Family members from the next generation are involved in the business.
______ Family members seeking employment in the family business must have work-related experience outside the family business.
______ Our development program identifies the areas in which family members will be best utilized and fulfilled.
______ We have family members who have made a career commitment to the business.
______ The identified successor(s) has a working understanding of the financial statements.
______ We have developed a method of evaluating potential successor’s readiness for succession.
______ Prospective successors are confident in their abilities.
______ Prospective successors execute business plans effectively.
______ Prospective successors have demonstrated an ability to make good business decisions.
______ Prospective successors have developed a strong rapport with our senior management team.
______ Aspiring family member successors are making a positive impact upon the company.
______ Prospective successors have demonstrated an ability to motivate and inspire others.
______ Prospective successors communicate effectively with managers and employees.
______ Identified successors have begun developing relationships with our bankers and creditors.
______ I am confident in the prospective successor’s abilities.
______ My identified successor(s) could run the business in my absence.
______ I have communicated my succession to family members.
______ I have a plan for transferring business assets to active family members.
______ I have communicated my succession plan to my key managers.
Total Score: ______ / 100
For all areas ranked as a 1 or 2, you have work to do. Focus on moving the 1 or 2’s to 3 or 4’s. As you are evaluating the results, give us a call and we will provide you next steps to consider.
We can help you with insights, other resources, and see if it makes sense to work together. At the very least, in 30 minutes, you may get some ideas you can apply to your business right away.
NextGen leaders can feel like they are stuck between and rock and a hard spot. Working to fulfill expectations of leadership as well as making their mark on the organization to earn respect. Click the following links for more drill-down resources on Successor Preparation.