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Succession planning

Looking for the golden rules to develop a failproof business succession plan? According to an article by Jason Arnold, found on the Inspire website, there are seven essential steps to success. And… – I’m throwing in an extra bonus rule at the end!

No matter if your business is a family-run operation transitioning to the next generation or, as is becoming increasingly common, searching for an external successor as family members choose different paths, these rules will help you sail smoothly:

Rule 1: Be a Trailblazer in Your Succession Strategy

Often, succession planning gets shuffled to the bottom of the to-do pile. Regardless of your age or stage in business, it’s always a good idea to have a plan in place. You know, just in case.

Rule 2: Keep it Simple, Silly

Disagreements often arise, particularly in family businesses, when the exiting leader attempts to please everyone, leading to convoluted solutions. Striving for fairness among multiple siblings can quickly become a bitter power struggle.

Rule 3: Nurture Growth with Regular Feedback

Hold frequent meetings and offer guidance to those involved in the transition process to foster an environment of continual growth.

Rule 4: Set Your Sights on Tangible Results

When the next leader isn’t immediately apparent, establishing clear, measurable goals for potential successors simplifies the selection process and makes it easier to defend if contested.

Rule 5: Ground Your Strategy in Reality

Transitioning leadership isn’t an overnight job. If you’ve been at the helm for over a decade, most of your business’s intricacies reside in your head. Therefore, your succession strategy should span at least two years, with a backup plan for faster deployment if unexpected situations arise.

Rule 6: Embed Your Company’s Vision in Your Successor

Ensure your successor comprehends the passion and purpose that fueled your business journey. Many second-generation businesses flounder due to the dilution of the original vision and fervor.

Rule 7: Disseminate Your Succession Plan Across the Organisation

The succession plan outlines the future trajectory of the company and reassures employees about job security. This sense of stability fosters loyalty and consistency – invaluable assets for your successor.

BONUS Rule (8): Let the Successor Lead with Their Unique Strengths and Style

Many businesses stumble during transition when the predecessor insists on sticking to their old ways. More often than not, the successor will bring a fresh leadership style, require different support mechanisms, and possess a keen sense of modern entrepreneurship.

If you’re keen to delve deeper into understanding various personalities within your company or family and turbocharge your business growth, feel free to reach out to me. I’m more than happy to help you unearth innate talents and leadership dynamics, starting with your journey to Wealth Dynamics.

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