SUCCESSION PLANNING
Succession Planning is a process for identifying and developing
internal people with the potential to fill key business leadership
positions in the company. Succession Planning is focused on the
business first, then the owner second.
A good succession plan will:
1. Involve all of the major stakeholders
2. Retain the talent necessary for the business to succeed
Succession Planning will make sure the company has the
human resources needed for the business to achieve the desired
results. This is accomplished by developing a qualified pool of
candidates ready to fill key positions and targeting necessary
employee training and development. Succession Planning
provides stability in leadership to sustain uninterrupted delivery
of services during an owner's departure. In some businesses, this
can be a major value driver that improves the valuation of the
business. This also opens up a lot of exit options or the ability to
leave the business and continue owning it.
SUMMARY
Most businesses are started and developed with the expectations
of the owner in their head. This tends to work because at this
stage, the owner is again leading by showing others the way. In
order to equip others to assist movement toward your vision, you
will need to actually document your expectations. The reason this
is the first tool is because nothing happens until others see what
needs to happen. This will help you create a clear picture of what
a transition will look like and how you are going to get there. Even
more important, this will ensure that others can achieve your
expectations by getting them down on paper in a simple format
that is less than two pages. The tool we use at Rua Associates for
this is called the Expectations Organizer.
www.outdoorpowerequipment.com OUTDOOR POWER EQUIPMENT JANUARY 2016 25
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Randy Rua founded Rua Associates in
2010, has more than 10 years experience
in the Mergers & Acquisitions field, and
is a previous business owner. He has been
involved in more than 54 transactions,
mostly in western Michigan. Randy is
a Certified Business Appraiser and a
Certified Exit Planner. You can reach
Randy at info@ruaassociates.com and
(616) 741-9344. This article is an excerpt from Randy's upcoming
book, which is under the working title: Transition: How to Leave
a Legacy by Successfully Transferring Your Business Ownership.
