MORE THAN JUST FAMILY BUSINESSES

I find it interesting how many times, when Succession Planning comes up in a conversation, that subject immediately focuses on family businesses. I was interviewed by a local business journal and never mentioned family business in our conversation but, sure enough, that's all was talked about in the article! Even my comments were edited to relate to family businesses.
True, every family business needs to have the transition from one generation to the next fully thought out well in advance.

The senior generation has to be prepared to let go and move on.

The incoming generation has to be prepared to assume the reins.

The company has to be organized to execute the transition in an effective, seamless manner.

The legal and financial programs need to be in place ready to be implemented at the right time - often over a period of time.

And all this has to happen for non family businesses, too! In many ways the issues that must be addressed are the same - except the family businesses may have to deal with more emotional issues.

All succession planning involves the senior generation members acknowledging their mortality and making plans for moving into what I call the 'third phase' of their life. Staying in a state of denial can rob the company of any potential to survive and proper into the future.

Most owners want their company to continue on. That also means identifying and developing the future leaders well in advance of the time for the transition to actually take place. In some instances, it may mean recruiting new future potential leaders (and owners) if the current people don't have what it will take.

But, when the 'next generation' was never developed, an internal sale isn't an option. Then, sale to an outside party is the better answer. And sometimes the external sale can generate more retirement income for the seller.

In every transition, family or non family, the challenge is to work out a myriad of details well in advance of the 'event.' More on that later.

The bottom line - whether a family business or not, developing and implementing a successful transition takes time, planning - and a will of the current owner to let go of the comfortable present to move into the different future.

WHAT'S WITH THE NAME?

I considered a bunch of names for this blog but, in the end, the decision was pretty straightforward.



My family and I brainstormed a list of names: Moving on, What's next, Your next move, Into the future and a lot of really neat ones but none of them were available.



I had also thought of three others.



Transition Success and Transition Strategies were high on my list. They are at the core of what succession planning is all about. Succession includes several different versions of transition: transition of leadership, transition of ownership and personal transition from a life centered on work to a life that has a different, equally meaningful and satisfying purpose.



We'll be exploring various aspects of transition in future blogs - as part of succession planning.



I finally came to the choice of SUCCESSION SUCCESS. That covers it all. And it's a phrase that everyone identifies with. And like the old Prego ad 'transition is in there!'



Next time, we'll begin to explore succession planning and the various aspects of transition. And in the future, we'll go lots of other places!



It's good to be with you. See you soon.



Pete Wendel

WHY A BLOG?

Here is my first blog entry - after eight years of writing a newsletter.

I'll still continue to publish a newsletter from time to time. The newsletter gives me a space to develop ideas in more depth and to stay in touch with those who aren't into 'that blog stuff.'

The blog format gives several advantages not available with a newsletter.

It's easier for people interested in succession planning to find me through my 'tags' and the search engine system. The expansion of my contacts through the newsletter was mostly people who I had met - a slow process.

Blogs are much easier to publish so I plan to produce an issue much more often that I can so a newsletter.

The interaction with blog readers is more robust. Readers can make comments that I and other readers can read and respond to. The result is more dialogue, more trading of ideas and through that dialogue a greater chance for all of us to learn.

So here we go! SUCCESSION SUCCESS - the blog, is up and running.

Pete Wendel