What would happen to your business if you were run over by a car tomorrow?
This is a question most of us would avoid or else we think that it would never happen to us. But and it’s a big but, how do you know? I was unfortunate the other evening to have someone tailgate me on a busy road. Thankfully no one was hurt but my car needs to go into the garage for repairs which is a major inconvenience. However, this got me thinking, if I had been badly injured what would happen to my business? Thankfully I have always been a believer in succession planning so I know that my business would continue and that my family would be taken care of.
What about your business? If you were unable to continue running your business, do you have a plan in place? Many of the SME’s that I have helped and supported have not considered having one why? “I don’t think about that”, “I don’t need one”, or “What’s the point?”
Think about it this way if you don’t have a succession plan your business could fall apart and become dysfunctional very quickly and it could have a disastrous effect on your family or shareholders. The great part is that it’s not rocket science.
First make a list of all the senior people in your company, it may be as small as 4 people or as big as 4,000. Now list down your direct reports and consider their skills and competencies. Next remove your personal emotion from this exercise. It’s not a friendliness competition, you need to ensure you think of the company’s longevity. Will the selected person or persons help the company grow and thrive if you are not available?
Draw up your list and prioritise what the company needs most – it could be sales skills, diplomacy, strong directive style, a decision maker, a combination of all? In fact, it will probably be based around your skill set. But try to build in potential growth in the future and look for someone who is as passionate about the business as you are.
As you sit back and think about this, your list will start to develop. Another useful idea is to talk to the persons peers – what type of person is he/she – remember as the boss you are only getting one side of the story, asking their peers helps to build a truer picture. Build a box matrix with the strengths and weaknesses of each individual and this will help you focus on what the ideal criteria is to run your business.
Finally, once you have you list of potentials be it 4 or 15, do not share this with them – this is critical as it will cause greater problems if they believe they may become your successor. The information can be shared and discussed with your HR Senior Manager. If you don’t have one then the alternative is to discuss your succession plan with the partners in the business or the share-holders. Someone needs to know that you have the succession plan or it’s a waste time and effort. Also keep the information confidential. Remember to review the plan each year as situations change, you could lose people in your team and gain new ones which will all impact the succession plan.
If you feel you need help in this area please do get in touch.