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Every successful organization needs to be in continuous self-renewal – especially at the leadership level. It’s essential for long term sustainability. Those that aren’t have already begun to atrophy, starting on a downward cycle of decay and possible death. Self-renewal at the leadership level depends upon successful succession planning.
Several firms I’ve talked with recently are focused on that very subject: succession planning – each from a different perspective, each with a different time frame:
- A majority owner of a successful consulting engineering firm wants to retire next year and his team of minority partners are scrambling to put together both a leadership team and a buy out plan to carry the firm forward.
- A branch manager of a firm wants to find a successor and have him/her in place to assure an orderly succession so that he can retire knowing that the office will succeed into the future. But he has doubts whether anyone on the technical staff has the talent and experience to succeed him.
- A sole owner of a firm wants to begin a ten-year ownership transition program but has only one person on staff who might have the potential to be his successor.
- A majority owner, 55 years old, has three partners – none of whom, in his opinion, can lead the firm after he retires. He wants to work for another ten years and then expects to either sell the firm to a competitor or ‘close the door.’
- A general manager of a quasi-governmental agency has several direct reports who are highly competent in their technical areas but the general manager wonders which of them have the desire and the capabilities (strategic, staff development, public relations, board liaison, etc.) to become his successor.
Leaders want see their organizations continue – as part of their ‘legacy.’ They want to see the organization they built grow and prosper after they retire.
There’s the option of bringing in an outside manager – often, I believe, a sign that the succession process isn’t working – or was never initiated. The ‘outsider’ option disturbs the system and raises the anxiety level of the staff – sometimes leading to the departure of key people.
Other options for private companies include selling to another firm or going out of business.
I believe that for all leaders, succession planning is both an opportunity and an obligation -- an opportunity to build a strong, sustainable organization that continues after them and an obligation to create a vehicle for their staff members to grow to their full potential.
There are many reasons the leader wants to grow a strong, sustainable organization:
- They want the fruits of their work to continue into the future.
- They want to see their successors (often people they ‘grew’) succeed.
- They want to see their vision and values guide future decisions.
- In ownership transfer situations, they want to ‘harvest’ their equity.
Staff members want a strong, sustainable organization for different, but equally valid, reasons:
- They want to know that the company will remain strong so that they will continue to have employment opportunities.
- They want to know that there is alignment between their personal aspirations and the organization’s values.
- They want assurance that they will have an opportunity to achieve their personal goals
- If they are to become owners, they want to have confidence that the firm they are buying is on a firm financial footing.
Successful succession cannot be accomplished overnight – or even in a year or two. It’s a five to ten year process that involves a myriad of considerations. It’s best to start sooner rather than later! Is it time to start Succession Planning within your company?
Peter Wendel is President of Peter Wendel Group, an organizational consulting firm dedicated to building high performance organizations that are able to prosper and grow in these rapidly changing times by offering succession planning, strategic thinking, team building and leadership development services. He blends a passion for organizations and people with a lifetime of experience both as a business leader/manager and an accomplished consultant.
Email: pkwendel@aol.com
Company Profile: Peter Wendel Group
Company URL:
http://www.peterwendelgroup.com
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