Advivo outlines 5 key skills you should pass on to help ensure a smooth succession for your business.
Did you know that 1 in 4 business leaders don’t have a succession plan in place? At Advivo we know that business succession planning can be a daunting and overwhelming task. That’s why we have carefully identified and compiled five essential skills that you should incorporate into your strategy and pass on to your successors, thereby helping you navigate the process with confidence and ensuring a seamless transition.
Leadership and Decision Making
In the absence of effective leadership, chaos can begin to infiltrate your business. Effective business succession planning should enable your business to transition from one leader to the next while preserving continuity and protecting the key information and objectives of your business.
Preparing the next generation of leaders within your business should commence well before a position is about to open up. It is vital that your business succession plan involves identifying high-potential employees early in their careers so that you can prepare them for their future roles as leaders of your business. Some strategies to prepare existing employees for future roles can include mentoring, job shadowing, job sharing, job rotation and formal training.
By allowing existing employees to engage with and learn from current leaders, your business values, objectives and approach to running your business will be instilled into your existing employees. This will allow for continuity in leadership style and ensure that the decision-making needs of the business will be well taken care of.
Strategic Planning, Relationship Building and Networking
If you are not looking to hire your new leader internally, ensuring that you have built solid relationships and networked with other market participants is essential to ensure your business will be left in good hands.
A key way to ensure that business succession planning operates as effectively and efficiently as possible is to implement strategic planning as a practice in your business. This planning style will allow you to set out the vision, goals and objectives of your business and how these will be achieved. This will in turn provide the new owners with clear guidance on how to operate your business in accordance with your values.
Innovation and Adaptability
During the process of business succession, the ability to adapt to new and unforeseen situations and bring forward new innovative ideas is essential for the success of the business as it moves forward.
The use of a strategic plan as previously defined, will allow you to assess the current situation of your business so that any opportunities or threats can be identified so that potential risks can be mitigated. This will ensure that when your business transitions there are existing procedures in place to provide guidance as to how the business should approach the challenge.
Financial Management
The final skill required for effective business succession planning is having a solid financial management strategy in place prior to exiting the business to ensure that the business’s vision, objectives and goals can be met financially. At Advivo we offer Business Succession Planning services to help understand your business’s current financial situation and to develop an effective plan for the changeover of its management.
The future of your business is important to us. If you are seeking any assistance regarding business succession planning, please contact Advivo today.
