13 Feb 10 Steps to Selecting and Preparing a Successor
It’s a real investment to select and prepare a successor – and it takes real time. You can’t just hire someone into a position of authority and hope for the best. Finding the right person for the job can be a challenge. But following a process to identify and select the right person can actually turn that overwhelming option into a successful business transition.
Follow these steps to select and prepare a successor:
- Develop a leadership profile.
- Where is the business headed?
- What type of leader will be needed to take it there?
- What will be the successor’s areas of authority, responsibility and accountability?
- Identify suitable candidates.
- Are there clear candidates for the leader position currently working in the business?
- Who has already demonstrated leadership qualities?
- Who has expressed a desire to attain a leadership position?
- Are there other people in the industry – or with important skills – that you would like to bring in?
- Identify gaps in skills and experience.
- What education and experience does the potential successor have?
- What skills does the potential successor possess?
- How does this align with skills and characteristics defined in the leadership profile (Step 1)?
- Prepare a management development plan.
- What skills do the potential successors need to develop? How will they develop those skills?
- In what areas of the business do potential successors need experience?
- How will they progress through the organization over the next 10 years?
- Prepare personal development plans.
- What goals will potential successors need to achieve within the next year?
- How will you monitor their progress?
- Assign coaches and mentors.
- Who will coach and mentor the potential successors?
- What knowledge/skills does each coach and mentor possess?
- How can the coach best impart knowledge/skills?
- Evaluate the successor candidates.
- How has the potential successor developed over the past year?
- Did the potential successor achieve his or her goals as outlined in his or her Personal Development Plan (Step 5)?
- What areas require further development?
- How have these gaps been addressed in his or her Personal Development Plan for the coming year?
- Select the successor.
- Who has demonstrated the skills and capabilities to lead the organization?
- Has this person earned the respect of employees and business associates?
- Has the successor gained the appropriate experience?
- Communicate your succession plans.
- How will the news of the successor’s selection be announced to the family?
- How will it be announced to employees?
- How will it be announced to customers and suppliers?
- Manage the transition.
- Over what period will the transition take place?
- What will be each person’s areas of authority, responsibility and accountability during the transition period?
- What is your target exit date?
Selecting and preparing a successor can be a challenge, but it helps to think of it in stages and as part of a process. It’s never too early. Thinking carefully about where your business is going and the type of person who can help you get there is a great place to start.
To learn more about transitioning your business, contact us.
Joel Rose
With over 35 years of experience, Joel Rose helps families – and their businesses – to prepare for the future. He offers guidance and support to help his clients create estate plans and succession plans that meet the needs of the whole family. Through his extensive professional and personal experience, Joel is known for his compassion and his ability to find a creative solution to meet each family’s needs.
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