The national election cycle is in full swing,
and the world is watching the coming transition of leadership in the White
House. What about your
organization? Are you prepared for
the critical leadership transitions that your business family will face in the
not-so-distant future?
Successful transition planning for the next
generation of leadership is more than just replacement planning. Too often, the
plan is simply to name a backup person to fill in when a need arises or take
over the position when the predecessor can’t do it anymore. This may work for
covering an illness or vacation, but it will not prepare the business, the
family, or the individual for future needs, responsibilities, or opportunities in
a changing business climate.
There are a number of factors to consider in
preparing the next generation of leadership:
1.
Roles
and Responsibilities.
Accurately determine what roles and responsibilities are essential for
the organization, difficult to replace, and will need to be transitioned in 5 –
10 years.
2.
Knowledge,
Skills, and Abilities.
Define the knowledge, skills, and abilities needed in those positions
both now and in the future.
3.
Current
Talent Pool. Examine the current talent pool of individuals
in the family and the business to understand potential options for future
leadership. Be sure to turn over
every rock: there may be unrealized talent that has not been previously
considered or has not had an opportunity to develop.
4.
Development. Proactively prepare and develop the
talent pool for future needs, responsibilities, and the changing business
climate. A well-defined development plan can be an important tool in developing
the next generation of leaders. To
be effective, development plans require thoughtful planning, diligence, and
follow-through.
5.
Preparation. Prepare the family and the business for
the next generation to assume leadership. Help the future leaders earn the
respect of the family, the business, and outside stakeholders.
Honestly discussing the critical issues facing
families and family businesses in transition helps foster the objectivity and
focus needed for long term success.
Successfully navigating the transition of leadership for both family
members and key non-family members often means the difference between
prematurely liquidating the business and creating a multi-generational family
business legacy.
