More Than A Number

Business succession planning was touched on in an earlier post, but there’s quite a lot to say on this topic. Few managerial processes are as complex as succession planning. Unlike other aspects of operating a business such as drawing up employee contracts, succession planning requires one to make difficult, tenuous, and often personal decisions about the direction the company will take in the future—a future that may differ radically from the one that was envisioned in the past.

Beginning succession planning early and adopting a holistic rather than top-down approach, however, can position the company for a smooth transition. Experts suggest teaching younger successors the value of accountability and critical thinking and showing them the impact that decisions have on the business.

Allowing professional development, both internally and externally, will increase the chances of a success. Consider forming a board comprised of junior members to give younger staff members opportunities to ask questions, learn, develop, and contribute to management decisions. Owners can instill valuable lessons about client communication, products and/or services, and company ethics well in advance.

Involving younger staff can also improve the chances of retention and longevity. For help with succession planning, contact Engel & Schultz, LLP, a Boston law firm specializing in all areas of business and corporate law, including employee stock options and contracts, phantom stock plans, partnerships, and more.