The Top 5 Things to Include in Your Succession Plan – and Why They Matter

Succession planning – whether you are starting to think about transitioning your business or whether your business is still in growth-mode – is a vital part of your blueprint for your team.
When they can see the future, they can envision themselves in it.  Conversely if the future is hidden behind the curtain of your mind, all they see is uncertainty or being stuck in the same old role.
The bonus of actually doing your succession plan?  Not only will you retain and challenge your “A Players,” your business will likely increase in value because they have the roadmap – they can see where you (and they) are headed.
Here are the Top 5 Areas to Include:
Your Team
People run companies.  And the most valuable companies are run under management – they don’t need owner involvement for things to run right.  Top team considerations for succession planning:
  • Is your team stable and motivated?
  • Do they have a high level of trust and respect?
  • How strong is your bench? Are there continency staffing plans in place?
  • Is the environment healthy, accountable and strong – are you playing “offense”?
Your Operations & Management Systems
  • Are daily/weekly/monthly etc. reporting systems in place and followed?
  • How clear are your lines of authority and decision-making?
  • How well do your managers manage?  Are they doing what you need & expect, or do they need training and accountability?
  • How easy or difficult is it for your team to pivot or respond to unplanned events or situations if necessary?
Your Customer Base & Sales
  • Are you over-reliant on a small group of customers, or do you have a broad base of people you work with regularly?
  • Is your team “fishing in the right pond” or fishing for guppies when you need whales?
  • Have you found your true Unique Selling Proposition so you’re not competing solely on price?
  • Do you have a healthy mix of recurring income and one- offs?  How well is the team retaining customers?  What’s their lifetime value?
Your Growth Strategy
  • How much are you investing in driving the future of your industry – R&D?
  • Is your growth plan down on paper and visited regularly so the whole team is aligned and excited?
  • How are you managing resources to support your current operation and still pursue new markets, products or services?
Effective Financial Controls
  • Are you updating your budget and cash flow forecasts regularly?
  • How often are you reviewing financial performance as a team?
  • How often are you reviewing Balance Sheet performance?
BONUS: Your Timing

One of the hardest things for people to do is pick an exit date.  Think of it like this – your exit date doesn’t need to be when you turn in your keys.  Make it the date you want the business transferable – the date it can work without you.  If you love what you are doing and want to keep working, you can!

Want to learn more?  Click HERE for a FREE Succession Readiness Scorecard.

Susan Thomson, CEO and Licensed Coach
ActionCOACH Business & Executive Coaching
Proud Member of TEMPO Madison
Direct: 608-441-5374
Email: susanthomson@actioncoach.com
MakeMoreWorkLessWI.com