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 key predictor of success and the impact leaders have on a group is not only significant but extremely consistent. Leadership is a “Group resource” and groups that are seeking to get ahead tend to want to have the best leaders in place to ensure that outcome. Personality plays a big part and I am often asked questions such as “Are leaders born or made”, “Do leaders have to be charismatic and inspiring to be successful.”
This video from Hogan Assessments is a very good resource and it answers many interesting questions as it explores the science behind personality and the impact this has on leaders. We use Hogan Assessments to support clients on our Executive Leadership Program and really value their research and expertise.
If a leader is action orientated, future focused, consistent, fair, has courageous conversations, coaches, mentors and cares about those they lead…………. a respect and a bond of trust will be established through shared experience. This leads to friendship over time. It does not mean things will always be happy.
I agree with the quote……..sell ice cream if you want to make people happy.
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.
Every day and every week our team of clever leaders are lucky enough to influence and support some iconic brands and high performance leaders. As a premium brand focussed on making a significant impact we work with selected organisations across New Zealand, Australia and the USA. This video outlines some of our recent work and I am proud to lead it.
Strategic execution is all about behavioural leadership. By this I mean that it is all about getting people to change behaviours and to make the important things happen. To execute relentlessly you need to constantly hone your skills as a leader and keep them top of mind.
One of the biggest challenges in business today is Executing Strategy which is critical if a business is to succeed in the future. I lead a business which is at the forefront globally of Strategic Execution and our team works with CEO’s and companies around the world each day as they actively seek to evolve and change by executing their strategy in a deliberate and disciplined way. This is a behavioural leadership problem to solve and one which requires a lot of courage. The courage to change, listen, make mistakes, make tough decisions, ask for help, get their people to change and to do what is right to move the company forward.
Business change is constant, fast and ever increasing so the challenge is very much about getting ahead of it because leaders who want their businesses to thrive in the future need to be able to effect change before it is needed. To be proactive instead of reactive. Whilst this sounds logical and achievable the reality is that it needs courageous leaders who are adaptable, emotionally aware and committed to getting better and better at this “behavioural leadership”. As this recent blog (Harvard Business Review) outlines: Strategic execution is a people challenge.
An simple executable plan is needed for sure, but this is the easy bit. Too often there is a great plan in place but the senior team executing it doesn’t buy into it & generally this is because they have not been involved in developing it and don’t understand the “people behaviour” skills needed. I see this play out time and time again. Leaders who are really frustrated at a lack of action but who have no idea why this is so & how they can practically overcome the problem. Here then are some practical ideas;
- Take time to get to know your team and build trust. Trust is the foundation of any team and its future success. Get to know the personality’s of those you lead, spend time listening to them, get into their environment, understand where they have come from and where they want to go and set about making them as successful as you can. Profile them, share yours, share them as a team. Have fun, tell them about what you are seeing, learning and offer them feedback & guidance.
- Force reflection. The best leaders constantly learn, evolve and iterate. Soft skills and the ability to self regulate behaviour through awareness is a very valuable skill and one effective leaders focus on mastering. Keep a journal of observations, key decisions and their outcomes, lessons learnt and make your direct reports do the same. Too often I find senior leaders who simply cannot reflect on what they are seeing and make observations or draw conclusions to make things even better.
- Have a simple and clear framework for leading. Prioritise meetings, get the agenda, frequency and content right. Use key numbers and ensure there is an action log. Seek feedback, let others run them, do more of them if the pace is increasing. Avoid the tendency to cancel you functional and leadership meetings when things get too busy. This makes for more confusion, lack of alignment and inefficiency. Use one on ones, reviews, full team (town hall) meetings, social media, internal comms and stand ups to get messages across many times. Get the mix of weekly/monthly/quarterly and annual reviews mapped out and in the diary a year in advance. Make sure professional development, technical and leadership training are conducted regularly to keep people engaged.
- Have fun. Too often life and business is all a bit serious. Take every opportunity to hang out, socialise, tell stories & make it something everyone looks forward to. Bank the wins both big and small & recognise those who do the right things.
- Provide clear expectations. Team rules, meeting rules, constant feedback and observations all make for better clarity. The role of a modern leader is to coach and mentor and guide alongside the traditional “management” role. Clarity and simplicity make for a better and more efficient team environment.
- Be consistent. One of the biggest mistakes leaders make are they are not consistent. This undermines trust. People want to know where they stand, want familiarity, and to be able to rely on not only colleagues but their leader to be there for them. Consistently confronting issues early, giving frank and honest feedback etc will build high levels of trust.
- Be deliberate. Too often the important components of teamwork and leadership are left to chance. Be transparent and open in your communications. Ensure the team reviews meetings, decisions, projects, client feedback, financial/sales results. Ask for input and draw lessons learnt. Have the soft conversations about issues, things that went wrong and commit to getting better. The important things in life are easy to do. They are also easy not to do.
- Be courageous. Have the ongoing tough discussions as they are needed. Don’t wait, dive in and shape thinking and outcomes to keep things on track. If you have a decent sized team then it is important everyone keeps moving in the right direction and stays aligned. This will be constantly needed. Be humble, ask for help, discuss when you got it wrong and lead the way to show others in your team how to get better in this space with their team.
- Be prepared to fail on this stuff. People are all different. You can’t & won’t get it all right. There will be times you push too hard, not hard enough or simply get it wrong. On the people stuff you have to be 100% accountable for your actions but also understand that how others react will be up to them. Be open and honest and when you get it wrong admit it & share it with your team so you reflect and learn. Don’t beat yourself up but do regroup and recommit to improving.
Too often CEO’s try to outsource many of the important things that drive a high performance culture. These skills are ones which must be developed in order to lead a growing thriving business that can change ahead of competitors in an increasingly complex business environment. This means they must be consciously developed and worked on to stay at the top of the leadership game.
A valuable video full of some valuable ideas on Strategic Planning and Strategic Execution from Business thought Leaders and Leadership expert John Spence.