Nearly everyone who has successfully launched a business enterprise has begun with extensive analysis and investigation, generally in the form of a business plan. But, how many of those thriving moguls have also contemplated a clearly articulated and wholly rational succession plan?

Exit strategies or succession plans need to be discernible to all stakeholders long before they are needed. Succession planning is always in order. Even if it will be years in the future, it is essential that the plan be shared with those who will eventually bear the brunt of decisions.

Transparency in planning chiefly promotes favorably ethical behaviors which in turn positively influence the organizational cultural. How often we hear stories about one who wholeheartedly believed that he / she was “next in line” only to see the coveted position hijacked by the boss’s nephew. Many otherwise stable organizations are put in a tailspin when the CEO abruptly retires or leaves for health reasons. The unexpected can cause a ripple effect wiping out the entire senior staff if plans are not candidly shared as part of the organizational ethos.

Neither exit nor succession is a subject to be entered into lightly. Plan ahead! It takes an average of two to four years to sell a small business. Keep up-to-date financials, a detailed business history, and above all, openly share the plan.

Many years ago, when I was a college student, the prof assigned what ultimately proved to be an arduous task. He asked that we define the word synergy and write a paper making specific application to our leadership-oriented coursework. An internet search of the word netted me a big fat “0”. Encyclopedias had no such listing. I was absolutely unable to find any reference to the word synergy! Continue reading →