Succession Planning
This paper talks about the succession
planning, mainly focuses on management succession planning and ownership. These
two factors are important in any transition from a generation to the next.
In management succession there are 4 key
departments that need to be addressed:
Administration and finance, operations and customer fulfillment, sales
and marketing.
Ownership successions planning main issues
are:
·
Technical mistakes.
·
Planning in vacuum
·
Leaving the business to the
surviving spouse
·
The challenge of treating
children equitably.
The paper also mention the leadership if
effective, usually account to 40% of the company’s profitability.
I like you addressed the issue of succession, to a certain amount it matters to all of us. While doing my research on succession, I found out the following:
ReplyDeleteIn order to successfully plan the transfer of the business, families should have regular meetings, agree on an action plan, set up a code of conduct sharing the same values, clearly communicate and assign each family member to a specific task, offer training, coaching and mentoring to them as a form of guidance, last but not least sibling or cousin meetings should be encouraged. In sum the senior generation should start planning early, develop a succession plan in written form, provide training, involve employees and family and lastly plan the retirement carefully.
I am not sure if generally there is one way on how to transfer the business and perform the succession. Different authors suggests different recommendations and solutions. I think considering them is important, but the most important aspect for me on succession is to be aware of it and plan it as early as possible!
What do you guys think about it???