What is succession planning?
Succession is often viewed as 'who gets what when'. This is but one small part of the succession process. What underpins a successful succession plan is business viability, therefore another important aspect of succession planning is transition of management. This is, 'who does what when'. The next critical element is leadership transition. If this is unaddressed it can seriously undermine any good succession plan. It is about the phenomenon of letting go and the evolution of roles within a business over time.
The complexities of succession planning...
- Leadership – Who leads
- Management – Who does what when
- Ownership - Who gets what when
Succession planning is not an event, it is a process.
The process involves the transfer of managerial control, assets, ownership and an occupation. Successors must be selected and groomed. The timing of the transition and managing the entry and exit of family members is one part of the process. We must also determine the needs and how we might provide opportunities for, other members of our families, those who do not choose to work within our businesses. Estate planning and the preservation of the family wealth and business continuity is another vital part of the succession process.
Therefore we can understand that the process goes beyond drafting wills, buy sell agreements, commissioning valuations and purchasing insurance. Communication is what underpins any successful succession plan. Even the biggest and best Australian farm family businesses can benefit from using this succession online program to bolster their communication skills to ensure their succession is as watertight as can possibly be.
Continue reading: Why succession planning is necessary