Business succession planning requires careful considerations by business owners as leadership changes effect the entire business including employee retention, customer relationships, and products or services offered by the company. Avoiding the following common succession planning errors will help business owners achieve a successful leadership transition:
- Failure to Keep the Process Transparent
A transparent planning process will keep your management team informed, build trust in the planning process, and prevent the loss of key employees to competitors. - Fear of The Future
Many times business owners so closely identify themselves with their company, they become concerned with ” What will happen to me” and postpone succession planning out of fear. The question that should be asked is ” What is best for the future of my business” in order to move from fear to a productive planning process. - Having a Focus On The Past and Not The Future
Many times Business Owners want to develop future business leaders that are similar to themselves when the focus should be on developing leadership skills that will focus on the future business environment and new customer development. Poor business leadership can be a disaster for any company.
The goal of the Business Succession Planning Process should be the idea of establishing a legacy of sustainability for both their employees and customers. Failure to plan is a road map to failure.