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.
Recently I took part in a leadership panel with three other CEO’s. This is a short clip taken from the wider panel video (the link is attached).
The Leadership panel was held recently in Christchurch for a large group of CEO’s, their leadership teams and business leaders. The other CEO panel members were Shaun Maloney of ARANZ Geo, Lincoln Booth of Cookietime, Keith Jessop of EMDA.
You can link to the longer panel video here.
Shaun Maloney is the CEO of ARANZ Geo, a finalist Company at the recent New Zealand High Tech Awards in Auckland. Shaun is a recipient of the Prime Ministers Leadership Award and has been a client of Advisory.Works for a number of years as his Company grows and scales. Here is a 2 minute video with him outlining why he works with our company in the Strategic Execution and Executive Leader Development areas.
Too often leaders play the blame game. They don’t own the space above the line. This short video is perhaps the best explanation I have come across of playing above the line.
I recently attended the 3 day Singularity University Summit in Christchurch. A 36 hour fire hydrant of the latest information looking at the mountain of change all of us on this planet face over the coming years. It was at times overwhelming, often daunting, incredibly exciting and certainly full of opportunities.
As businesses face the prospect of disruption through technology change I am struck by the two most common responses. Either;
- They know it is coming but don’t know where to start planning for it and how change might impact their business. So they don’t start the journey to understand what they don’t know yet.
- They are so inward focussed on their own business they simply have no idea things are even changing around them.
Some actual recent scenarios I have had working with the Senior Leadership Teams from a range of industries ($10m revenue companies through to $1Bn plus) as they lift the horizon of their planning to beyond the next 1 – 3 years. In the last few months;
- A manufacturing company who thought robotics & automation would not impact their business in this decade but after research & discussion realised the impact on their plant, equipment, people is less that 2 years away.
- The company who realised that their business model would probably be totally obsolete in 15 – 20 years but were not doing anything about it because none of them would be in the company then and they never looked that far ahead nor had any sort of agenda to discuss it as a group. When we led the discussion they have totally changed this view point as leaders of a large organisation.
- The transport company who as a senior team felt that automated vehicles are 10 years away but after committing to explore this & visiting Europe they discovered that not only will their whole fleet and drivers be impacted significantly, it will start in Feb 17 when their next 3 trucks are delivered with a driverless capability & already they can see that their insurance companies will reduce premiums because this technology is safer. This will drive the change faster across the industry.
I could go on. My point is that this will be the biggest leadership challenge any of us leading in business over the coming 5 – 10 years will face. We can’t duck dive the wave of change but we can choose to consciously start to understand how it will impact us and our organisations. I am reminded of a quote I once heard “You might hate change but you will hate irrelevance even more.” Ignoring it is not an option and the sooner you start the easier it will be to adapt.
At Advisory.Works we believe that leaders and organisations must adapt & constantly change in the future so that they can thrive. There is massive business opportunity within this change and for many “what” they do may not change but “how” they do it certainly will. Those of us leading now must build the Adaptability Quadrant (AQ) of ourselves, our people and our organisations. Moving forward AQ will become a key predictor of success much as IQ & then EQ did.
Leaders and organisations must be adaptable so they have the resilience to constantly adapt, iterate and evolve. Now more than ever leaders must invest in professional development and this start with an awareness of what they will face in the future.
Without this you will simply just hit a brick wall as an organisation.
Are you slaying dragons?
We use this video on our Executive Leadership Program. It nicely tells the story of the soft (EQ) skills that are so important as a modern business leader. In fact to move beyond transactional type management and to develop as a leader who can adapt, flex and grow a business in todays disruptive environment these are the skills to develop.
It constantly amazes me how many professional leaders don’t invest in their own ongoing professional development. Those who do achieve a major competitive, they consistently out perform competitors by having a highly engaged confident team delivering exactly what clients need. They pivot through disciplined execution to stay ahead and they are highly profitable.
They have clarity.