Succession Planning

Who will take over your business at retirement? Is a contingency plan in place if you are unable to lead for any reason? How will your business keep pace with the changing times? These are important questions to ask if your desire is to maintain a healthy, sustainable organization.

As an example, law firms have systems in place

to manage their attorneys' careers toward maintaining effectiveness in providing client services. This includes provisions for mandatory retirement. However, the need for systems goes beyond individuals; businesses must stay abreast of forecasts and trends to remain competitive.

The type of business most vulnerable to gaps in future planning is the family-run enterprise. It can be challenging to incorporate succession planning while maintaining family balance and control. A simple way to start may be with a frank assessment of current status to determine potential next steps. This can help with introducing new concepts and managing expectations in a way that best serves the future of the company

One of the most helpful books I've read in this regard is Executive EQ (Cooper, Robert K. and Sawaf, Ayman, Perigee Book 1998). This easy to read management book provides an excellent framework for leaders who wish to plan at this level. The book also offers insights into many other best practices. I highly recommend it.