A Strategically Structured Outline for Business Succession Planning

One of the most important questions entrepreneurs ask is: "Do you have a succession plan or exit strategy for your company?" I also ask employees: "Do you know if a succession plan or exit strategy exists in your company or organization?" You may be surprised to know that in my experience of over 90% say they will not have any succession plan or exit strategy. A 2004 CIBC Small Business Outlook Poll (conducted by Decima Research), has indicated that 39% of small business owners plan to sell their business and 15% plan to have a family member take over. Yet, two thirds (67% (of employers surveyed said that they had not yet addressed the issue of who will take over the company. To me, this result is very significant and frankly it's a motivation for writing this article.

Succession planning is critical for long-term success of any business. Transitions of leadership in business continuity throughout the organization, employee retention, customer loyalty and return on investment. E 'essential to create and implement a process that creates visibility, accountability and a greater integration of all aspects of business.

In another article, Your Strategic Thinking Business Coach provided seven (7) strategic actions to be taken to structure a process of strategic planning. Those seven (7) strategic actions are:

Strategic Action # 1: Start the process of succession planning early.

Strategic Action # 2: Determine and clearly communicate the goals, objectives and scope of leadership succession plan or program.

Strategic Action # 3: Clearly define the desired qualities and requirements of the new leader.

Strategic Action # 4: Develop a clear development strategy focused leadership.

Strategic Action # 5: Develop a talent management process that will incorporate the strategic thinking for the development of specific opportunities for future leaders.

Strategic Action # 6: identify future candidates for leadership by developing a system to assess the needs of current and future leadership.

Strategic Action # 7: Identify a system for communicating information to ensure that the succession of leadership and / or development programs are in line with the strategic business needs.

After developing the list of strategic actions, it was important to develop a general scheme strategically structured to present the elements of succession planning. Such a scheme is the following:

STRATEGIC PLAN OUTLINE OF STRUCTURED SEQUENCE

I. GOALS AND OBJECTIVES

Develop a vision statement for your business

Develop a mission statement for your business

Develop a list of values ​​and guiding principles

Develop short and long term goals for your business

Identify stakeholders for your business

Develop your personal vision

Develop your personal goals

Develop your retirement goals

Create a team of consultants for your succession planning efforts

Determine need a succession plan

II. EXIT STRATEGY

Develop options for your exit from your business

Examine the options developed for your exit from the business

Select the option for your exit strategy

III. Business Valuation

Get professional advice to determine the value of your business

Determine the value of your business

Determining a current value of your business assets and liabilities

Determine the value of the goodwill of your business

IV. Business Structure

Identify and quantify the corporate debt

Recruit and keep employees productive

Business structure to maximize the value

Document key processes and procedures used in your business

V. TAX CONSIDERATIONS

Develop financial goals

Identify the tax implications of your work in progress

Plan and implement tax strategy to reduce taxes

VI. LEGAL CONSIDERATIONS

Retain professional legal counsel

Develop a buy-sell agreement for your business

VII. SUMMER PLANS

Maintain a professional estate planning consultant

Develop an estate plan

VIII. SUCCESSOR SELECTION

Develop specific criteria for his successor

Recruit and select a successor based on your criteria

Communicate the selection of a successor to your stakeholders

IX. SUCCESSOR TRAINING

Develop a list of characteristics and skills necessary for his successor

Develop a training plan for his successor

Develop a coaching / mentoring plan for his successor

Establish a timetable for the successor plan

X. emergency plan

Develop an emergency plan (based on the "What Ifs?")

To research and identify the insurance needs (disability, personal life, critical illness, business, key person, etc.)

Select and train a key employee to take in case of emergency or unforeseen event

Communicate the plan to stakeholders and consultants

XI. IMPLEMENTATION PLAN

Document the roles, responsibilities and expectations regarding the ownership transfer

Identify a facilitator to ensure that the succession process is carried out

XII. CALENDAR

Identify the timetable for transition management

Identify your timeline for the transfer of ownership of your business

Identify the calendar to complete your exit from your business

XIII. COMMUNICATION

Document the succession plan

Document how to proceed with the succession plan in the event of an unforeseen event (accident, illness, death)

Document the transition or exit strategy to inform the family, employees, customers, suppliers, communities and all stakeholders ......