Succession Planning…Are they really ready!

Last week I sat with an executive who was quite comfortable with his role as the #2 guy for the family run business. However, what was causing heartburn for this man was whether or not the next generation is really ready.

As a business advisor and coach, often the soon to be retiring executives ask me this same question. Since it came up twice this week, I thought I would address the issue in a quick format. Please respond if you need additional information or resources.

The issue at hand is that currently three family members, in their late 20’s, are working in the business. It is interesting because the question was two fold. A) are they ready and B) would any one of the three ever be ready? The question was framed well because we have a 7-10 year ideal transition time. In most cases, there is little to no transition time. Already, a company thinking ahead of their competition!

Here are 5 keys to determining if a family member is capable of leading the family business:
1. Do they want to (gosh, I forgot to ask)? Remember, what they shout so loud I can not hear what they say.
2. What does their “Success Autobiography” tell you? In other words, where else in their life have they demonstrated the kind of leadership it will take to run a business? Think of sports, social clubs, involvement in school government, leading role in school plays, community involvement, etc… where did they have to demonstrate and excel in leading without authority.
3. Do they save or spend money? I want some one who makes and then understands the word keep.
4. Other than their name what makes you think they can? Most importantly what do their current subordinates and peers think about there ability to lead?
5. Do they know intuitively who your customers are? Do they value your customers? Have they made decisions while working for the family business or any business that exhausted the value of the customer? Remember, to see any business prosper it is always about keeping your current customers, finding new ones and making money.

Three actions if you are facing questions about succession:
1. Have a battery of assessments taken to determine if they are hardwired and to develop a master succession development plan for the individual.
2. Follow-up the above assessments with a detailed succession plan for the organization. Multiple people will be potentially displaced and moved into higher positions. Will you be ready?
3. Make sure when you make the move that the key players working in different roles will be surrounded by talent or key business advisors and or coaches. Sometimes it is as simple to having the right administrative assistant in place.

Late Friday afternoon I got an urgent call from a customer, “John, is he ready.” After I took the weekend and read my own draft of today’s Mid-Week Mentor…I smiled because my same advice applies to the executive I am currently coaching.