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.
In the busy world of business seniority tends to over rule in decisions that have no data. The more experienced and senior members of teams have more sway in decision making as they offer opinions and ideas and too often they are incorrect. They are assumptions based in history, bias or a lack of new thinking.
I work with senior teams all the time and see this pattern. The founder, CEO or “old heads” will refer back to what happened or didn’t happen in the past or what they think. This is often driven by the desire to avoid change because as humans we all hate having to get uncomfortable. New team members voice their views and ideas that are worth exploring but are simply dismissed and at its worst this creates a culture that resists change. It creates a significant risk that the organisation will be irrelevant in the near future.
At its worst countless hours are spent talking about opinions as if they are facts. One of the lessons I have learnt is that “Data wins Arguments”. Data takes the discussion from “I think” to one of “Let me show you”. It shifts the conversation to one that will get a good solid outcome. It takes emotion and bias out of the equation. It leads to data driven and robust business decisions. The role of a leader is to disrupt business as usual in a good way so that the company adapts and thrives in the future. Data can create a huge mandate for change by exposing current & future reality.
This is the impact of KPI’s, financial trend graphs, research, analysis of patterns and numbers. A simple exercise of graphing the monthly, year to date and lifetime revenues of your top 20 clients and having your team sit together and discuss what they see can have a huge aligning effect and can completely shift thinking, perceptions and provides clarity of the actual reality.
This video is worth watching as it outlines just how wrong we get it if we don’t seek data about what media shows us. The gap can be huge and in fact chimpanzees can be more accurate if we don’t look for the numbers and validate our perceptions.
High performance leaders go well beyond emotion, perception. They are aware of the impact of data and seek it to get better business decisions.
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?
I am lucky enough to work one on one with many prominent CEO’s, Founders and senior leaders across NZ, Australia & the USA. These are highly motivated professional leaders already achieving some amazing things. They seek to be more intentional in their leadership role and to stay ahead of the crowd/competition. The courage to seek external help really sets them apart because the average CEO stops their professional development once they reach the top role whilst the top performers know the journey is just beginning. You are only as good as your last game and as with anything in the high performance space you need to apply top of mine application to 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.
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.