Be careful to avoid these three common mistakes business owners often make when naming successors. Such missteps can cloud your objectivity and diminish your chosen candidate’s ability to effectively take control of your company.
1. Attempting To Clone Yourself
When selecting your successor, it can be tempting to look for someone who thinks and acts just like you. But the most qualified successor may turn out to be someone whose leadership style, skills, and business strategy are entirely different from yours. As long as the two of you share the same fundamental values and vision for the company, you shouldn’t let the fact he or she manages things in a different way cloud your judgment.
2. Not Considering The Future
Your successor won’t only be responsible for leading your company in today’s business environment, but tomorrow’s as well. Today’s marketplace is constantly changing, especially when it comes to technology, so the skill set and business strategies that work now may not work in the future. Choosing a successor is about ensuring your company’s long-term success. Think about how you’d like your company to grow and evolve, and then identify those candidates whose skills and strengths best align with your vision for the future. Don’t hire a successor based solely on where your company is now, but on where you want the company to be in the next 10 to 20 years.
3. A Lack Of Transparency
Letting your team know that succession planning is ongoing helps build your team’s trust in the process. This is particularly true for those in senior positions who may be interested in being considered for the job. If someone feels they were kept in the dark about a leadership transition, he or she may be resentful and even consider leaving. It’s crucial that your successor not only has your trust and support, but your team’s trust and support, too. Do your best to make things as transparent as possible, because no matter how qualified your successor is, they’ll never make it unless they’re accepted and respected by the rest of your team.
Enlist Our Support
Choosing the right person to take over your business can be incredibly challenging. Effective succession planning isn’t just about naming your replacement—it involves every facet of your operation, and planning for your exit is just as important as any other planning you do for your business, if not more so. We can guide you through the entire process and help ensure the business legacy you worked so hard to build will continue to thrive no matter who’s running the show. Contact us today to get started.
AB Law, PLLC is a full-service business law and estate planning firm that serves clients throughout Texas. All consultations are free and no question is too silly, ridiculous, or complex. https://calendly.com/ablawpllc www.ab-firm.com