48% of NZ businesses will need to navigate the challenge of Leader, Founder and possibly ownership succession. It is a global trend as baby boomers come out of their business that will peak around 2028 – 2030. It also presents a massive opportunity to get right. How do you create a culture of leadership development and succession planning? How do you start to get your head around the journey ahead. This panel video is worth watching as you start the conversation and the journey.
I do quite a few keynote speeches both for businesses, conferences and universities.
One I did recently in the USA was for the global software company Optym (www.optym.com). They videoed it and kindly made it available for my network.
If you are looking for a practical keynote around leadership, strategic thinking or execution (getting things done) please connect.
As a leader communication is a core competency you need to have. Likewise healthy conflict is good as a team collaborates, norms, storms and performs. Ideas are challenged and new ways are discussed. This short clip with John Spence discusses the topic. How do you approach it?
So often the topic of succession is ignored or seen as negative. The reality is that it offers a big opportunity to ensure business continuity, a legacy to be realised or an investment to be realised. A culture that invests in leadership assists greatly in ensuring that a business will thrive beyond its current leader (be that a founder, owner or professional CEO).
In this video John Spence and I discuss the topic and some of the challenges and opportunities.
A fantastic Canterbury Company taking High Performance Motor Sport Technology to the world. Link Engine Management is a global exporter of engine enhancing technology. As finalists in both the Champion Canterbury Business Awards and the New Zealand High Tech Business Awards in 2017 it has been a year of growth successes. I am proud to play my small bit as Chairman of the Board of Directors as we support a talented leadership, marketing, distribution, manufacturing and engineering team.
One of the biggest challenges many businesses face is that of succession. Too often it is seen as something negative, stressful or is an unspoken topic. Certainly it is one that can be full of emotion especially in family businesses or it can appear to be simply a problem too big to tackle.
It is considered the realm of Lawyers and Accountants and many seek to engage these professionals to “solve” the problem for them. Without a doubt they need to provide good advice but succession is a leadership issue rather than a technical problem. It is one that requires courage, planning, transparent communication, good ongoing advice from a number of specialists and clear decisions. It is a journey, not an event.
Succession is not just about an ageing business founder/owner. The professional CEO needs to develop other leaders in their team to be able to take over the their role when the time is right & any organisation needs to have some contenders who can take on the top role (whether they do or not will depend upon the needs) and this requires a culture of investing in leaders at every level to step up.
Each week we speak to & work with business leaders who are looking to get out of their business. I have personally supported many who have started and successfully completed the journey.
Ten recommended considerations;
- Face into the opportunity. Ignoring succession will not make it go away. A compressed timeline or sudden change due to death or illness significantly reduces the chance of long term success.
- Select those who will succeed you carefully. Make sure they fit, buy into the vision, care about the mission and people and build trust. Succession is all about people, decisions and change. Lead well.
- Plan for success. Have a plan with key milestones and understand the process and journey. Get all the people involved who need to be and get the issue on the table. Build a plan that will iterate and evolve.
- Understand that succession is part of the evolution of any organisation, business and family. Change is constant and people don’t deal with change well. Embrace the journey and don’t treat it like it is “negative” or an “event”. It is a fantastic opportunity to evolve your business and to ensure it thrives (not just survives) in the future.
- Get good advice. Have external help in getting the plan and issues on the table. Seek good legal and accountancy advice throughout the journey but don’t leave the “people” plan to a tax specialist or legal advisor. This is about people and change rather than just a structure or contract.
- Succession is all about the future so a good vision and strategy will be needed and good leaders who can execute change. Succession is about leadership so include it in all your leader development programs. If you don’t have a leader development program get one in place. Little bits regularly can really make a big impact on the future vitality of an organisation.
- Make good clear decisions at every stage and map out the decision points & timeline. Document and communicate things & keep things on track.
- Implement and invest in key structures that enhance success. Independent Governance (or a Advisory Board as an initial step), bringing the business under management, coaching and leadership development for key current and future leaders, good independent advisors, implementing legal and financial structures and processes based on future plans are all critical as a business moves into a space whereby the business is not reliant on the founder or owner. Many of these take considerable time to implement and re a real culture shift for the business.
- Network with those who have done it. Find those who have made the transition and ask questions. Hear what went well and more importantly learn form the mistakes they made as you look to apply things to your own situation.
- Enjoy the journey. For those who successfully navigate change and ensure that their business will ensure into the future providing for the next generation the rewards are great. If a trade sale is involved the satisfaction of seeing the business moving to a new level is exciting whilst at the same time providing a new found freedom.
Each week we are delivering valuable services as true trusted Advisors throughout New Zealand, Australia and the USA to High Performance Businesses and Executive Leaders looking to Execute, simplify their business and to increase their influence as professional leaders. A snapshot of the team in action.
We believe that in order to thrive (not just survive….thrive) in the future and an ever changing business environment, Leaders (and Businesses) need to constantly adapt, change, iterate and to lead their people with certainty.
This mission involves working with Business owners, Board Chairs and CEO’s who are looking to invest in their own leadership skills, grow other leaders & develop a clear strategic execution plan which they can execute continuously. The latter “Execution” piece is the important bit.
This is about getting things done, prioritising the important things over the urgent (disrupting business as usual in a good way) and leading behavioural change. This is getting the people in the business to change and do different things & sadly our world is full of people with great ideas but not people who can bring these ideas to life practically.
This short video outlines some of the work we do with long term clients as we support them to lead in change, succession and execution.
Leadership is a game changer, the “magic ingredient” that can take a group of individuals, shape them into a team and then inspire some incredible achievements. I am lucky enough to work with, support and spend time amongst some amazing leaders both within Advisory.Works, the NZ Army and our client portfolio that includes prominent CEO’s, Founders and Directors from leading brands/companies in NZ, Australia and the USA.
Change and disruption are now just part of our new normal and we see business leaders actively seeking the leadership skills that can give them the edge. The ability to enable a culture that talented employees want to be part of and the ability to change and iterate so as to consistently stay ahead of their competition. Leadership is a lonely place and the skills a leader needs are not really taught anywhere. Influencing the future leaders is something I am passionate about and why I’m actively involved with MBA & Masters programmes at the University of Canterbury.
Our Strategic Business Partner John Spence recently spoke at the University of Canterbury Executive Leader Programme as part of the “Thought Leadership Series” and covered many of the current and emerging leadership trends he is seeing in his work globally with high performing organisations. You can check out his presentation here;
Let me know your thoughts?
I have just spent several days working with a large listed Australian company at an offsite in the Blue Mountains. They were taking their Strategic plan and consciously building their plan to execute the Strategy. Typically you should spend as much time planning the execution as you do making the Strategic plan and yet this is rarely done.
This is core business for Advisory.Works as our clients know & it prevents one of the biggest frustrations in business today: A lack of execution. Nothing happens…..a great plan is never realised, it sits on the shelf and gathers dust. This is total insanity & so often Business Leaders wonder why their fantastic Strategic plan never ever gets executed. How can it?
Here are a few thoughts on Disciplined Execution from a recent CEO Leadership Panel I was part of in Christchurch.