Tweet

A Strategically Structured Outline For Business Succession Planning From Your Strategic Thinking Business Coach

Written by: Glenn Ebersole

Article Overview: One major question I ask business owners is: “Do you have a succession plan or exit strategy for your business?” I also ask employees: “Do you know if a succession plan or exit strategy exists in your company or organization?” My experience has more than 90% telling me they have no succession plan or exit strategy. Succession planning is a critical factor for the long-term success of any business. Leadership transitions in business affect the entire organization’s continuity, employee retention, client retention and returns on investment. It is essential to create and implement a process that creates visibility, accountability and greater integration of all facets of the business. Your Strategic Thinking Business Coach has developed a strategically structured succession plan outlnine and shares it in this article.

A Strategically Structured Outline For Business Succession Planning From Your Strategic Thinking Business Coach

One of the major questions I ask business owners is: “Do you have a succession plan or exit strategy for your business?” I also ask employees: “Do you know if a succession plan or exit strategy exists in your company or organization?” You may be surprised to know that in my experience more than 90% tell me they have no succession plan or exit strategy. A 2004 CIBC Small Business Outlook Poll (conducted by Decima Research), indicated that 39% of small business owners plan to sell their business and 15% plan to have a family member take over. Yet, two-thirds (67%( of the entrepreneurs polled stated that they had not yet broached the subject of who will take over the company. To me that result is very telling and frankly is a motivator for writing this article.

Succession planning is a critical factor for the long-term success of any business. Leadership transitions in business affect the entire organization’s continuity, employee retention, client retention and returns on investment. It is essential to create and implement a process that creates visibility, accountability and greater integration of all facets of the business.

In another article, Your Strategic Thinking Business Coach provided seven (7) strategic actions to take to strategically structure a succession planning process. Those seven (7) strategic actions are:

Strategic Action #1: Begin the succession planning process early.

Strategic Action #2: Clearly determine and communicate the purpose, goals, and extent of the leadership succession plan or program.

Strategic Action #3: Clearly define the desired and required qualities of the new leader.

Strategic Action #4: Develop a clearly focused leadership development strategy.

Strategic Action #5: Develop a talent management process that will incorporate strategic thinking for specific development opportunities for future leaders.

Strategic Action #6: Identify future leadership candidates by developing a system for assessing current and future leadership needs.

Strategic Action #7: Identify a system for communicating information to ensure that the leadership succession and/or development programs are in line with strategic business needs.

After developing the list of strategic actions, it was important to develop an overall outline to present the strategically structured succession planning elements. That outline is as follows:

STRATEGICALLY STRUCTURED SUCCESSION PLAN OUTLINE

I. Goals & Objectives
Develop a vision statement for your business
Develop a mission statement for your business
Develop a list of your core values & guiding principles
Develop short & long term goals for your business
Identify the stakeholders for your business
Develop your personal vision
Develop your personal goals
Develop your retirement goals
Create a team of advisors for your succession planning effort
Establish the need for a succession plan

II. Exit Strategy
Develop options for your exit from your business
Review the developed options for your exit from the business
Select your option for your exit strategy

III. Business Valuation
Obtain professional advice to determine the value of your business
Determine the value of your business
Determine a current value of your business assets & liabilities
Determine the goodwill value of your business

IV. Business Structure
Identify and quantify your business debt
Recruit & retain productive employees
Structure business to maximize value
Document key processes & procedures used in your business

V. Tax Considerations
Develop financial goals
Identify tax implications of your current business
Plan & implement tax strategy to minimize your taxes

VI. Legal Considerations
Retain professional legal counsel
Develop a buy-sell agreement for your business


VII. Estate Plan
Retain a professional estate planning advisor
Develop an estate plan

VIII. Successor selection
Develop specific criteria for your successor
Recruit & select successor based upon your criteria
Communicate selection of successor to your stakeholders

IX. Successor training
Develop a list of characteristics and skills needed by your successor
Develop a training plan for your successor
Develop a coaching/mentoring plan for your successor
Establish a timeline for your successor plan

X. Contingency plan
Develop a contingency plan (based on the “What Ifs?”)
Research & identify insurance needs (disability; personal life; critical illness; business; key person; etc.)
Select & train a key employee to take over in case of emergency or unforeseen event
Communicate your plan to stakeholders & advisors

XI. Implementation of plan
Document the roles, responsibilities & expectations concerning the transition of ownership
Identify a facilitator to make sure the process of succession is carried out

XII. Timelines
Identify your timeline for the management transition
Identify your timeline for transition of ownership of your business
Identify your timeline for your complete exit from your business

XIII. Communication Plan
Document the succession plan
Document how to proceed with the succession plan in the event of an unforeseen event (accident, illness, death)
Document the transition or exit strategy to inform family, employees, clients, vendors, community & all stakeholders

Your strategic thinking business coach encourages you to initiate your succession planning process NOW, NOT LATER, and to use strategic thinking in the development of your succession plan. If you would like to learn more about how to develop a strategically structured succession plan and how a strategic thinking business coach can facilitate and guide you in that endeavor, please contact Glenn Ebersole today through his website at www.businesscoach4u.com or by email at jgecoach@aol.com

Related Articles
  Strategically Structured Succession Planning For Company Leadership According To Your Strategic Thinking Business Coach
  10 Most Compelling Reasons To Hire A Coach, According To Your Strategic Thinking Business Coach
  Strategic Thinking For Business Owners For Successful Retirement, According To Your Strategic Thinking Business Coach
  “Do You Know Where Your Succession Plan Is? And Do You Know What To Do If You Can’t Find It?”
  Business Coaching As A Valuable Asset For You and Your Business

Article Tags: business coach, business leadership, business outlook, client retention, critical factor, development strategy, employee retention, entire organization, exit strategy, leadership candidates, leadership development, leadership succession, leadership transitions, retention client, returns on investment, small business owners, strategic thinking, succession plan, succession planning process, talent management



Related Forum Posts
HRPreneur - Hi everyone, I am new to the forum and I recently started my own Human Capital (HR) consulting firm called HRPreneur Inc. HRP focuses on making human capital a strategic differentiator for SME's. Below is a summary about HRP; Who We Are: HRP is a Human Capital consulting firm with 30 years of experience that becomes an extension of your company by providing a full array of services to help you create a highly engaged workforce focused on achieving strategic results in order to build a long lasting great company! Mission: HRP provides small and medium sized businesses a Strategic HR Business Partner to increase employee engagement, resulting in cost savings, increased productivity and results at an affordable rate! Vision: To inspire and warrant SME's reach their full competency! Cost Effectiveness: We provide over 30 years of experience at a fraction of the cost at a strategic executive HR business level You will save between 50% to 60% in costs per year on salary, bonus, benefits, training, office space alone We will provide you additional cost efficiencies through our services Services: • Strategic Human Resources Planning • Organizational Redesign • Change Management • Organizational Culture Development • Employee Engagement Programs • Leadership Assessment and Development • Compensation Design • Talent Acquisition • Assimilation and On-Boarding • Performance Management • Talent Management & Succession Planning • Human Resources Due Diligence • Human Resources Audit • Full Service HR Outsourcing
Re: Business Coaching Resources - You're fortunate when you can find a Business Coach who has experience beyond where you've been and even where you are going. When your budget is slim and even after, it's good to have a mentor. Several of various backgrounds are very useful. They can be teachers, professors, pastors, business people, family members, bosses and former bosses. You have to be clear on what you want and what you desire to achieve, be able to convey it as simply as possible. Stop and listen and don't over tax their time. You should always expect results whether from a Business Coach or Mentors. If you're not gtting results, you're either not focused or you need to upgrade the quality of your mentors/coaches. Always surround yourself by people smarter than you.
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Business Innovation - Hi Simon If you can finish off the Business Plan and think about your strategic direction or how you are going to use your product to convince people it's a great idea, it will set the foundation for your programming project. You see, when you are looking for funding you will need a Business Plan and Strategic Plan that will convince companies to invest into your new idea. Has anyone achieved this idea before using another industry besides health and fitness that you know of? You should also design some mockups as a "preview" for your programming project. This will also help reduce your programming costs as everyone will know exactly what you want if you have detailed mockups already completed including any functionality you require. Starting mockups for websites and software applications on paper is the best way if you're not a guru in graphic editing software.
Re: Essential Leadership skills - Vision Values Mission Strategic Thinking Decision Making Communication Team Bonding People Development Coaching / Mentoring / Guiding / Grooming Presentation Thanks Robert


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Sales Training – Top Salespeople Are Not Dunces

Executives and Elevators Perfecting That Pitch

In the Year 2020 . . . Process

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.