I know, you’re promised 10 minutes. Well, this read will be less than that!
Planning and implementing a succession executive search require a strategy. Here are some tips for closely held companies.
Want To Leave A Legacy?
There are at least 10 ways owners can leave a company, is a succession executive search for you? One of them is leaving a legacy. Why? Because they care about their community, their customers, their employees, and their vendors. When owners of closely held companies decide they do not want to sell their business they are looking at other options – and legacy is an important one. How owners decide to develop the process is important, which leads to tip # 2.
No One Is Able Or Ready To Step Up!
That’s right. In a closely held company, family owned or otherwise, owners know there is no one to step up and take their place – otherwise they would have been grooming their successor. As such, owners need to look outside the company. Usually this happens by contacting an executive search consultant who specializes in succession executive search. So, what’s the process for a succession executive search? Thought you’d never ask.
Develop The Succession Strategy
This involves a bit of looking back, looking inward, and looking forward. As owners go through this process they should understand and answer several of these questions going forward.
- What made us successful – is it still relevant now and in the future?
- Where is the market now – and where might it be in 5 to 10 years?
- What resources (financial, human capital) will be required to remain competitive and grow?
- What is our time horizon for continuing company ownership?
- What opportunities exist for our company in our community, with our customers, with our employees, and with our vendors?
- What results would we like to achieve with our new executive?
What’s The Best Way To Look Back?
I suggest you conduct a high-level review of your business systems to include human capital, operations, financial, marketing, sales, technology, real estate, and organizational structure, to name a few. I suggest high-level since this will help to inform owners and the new executive of current company strengths and opportunities for improvement. Better yet, there will be no surprises once the new executive starts and provides owners and the new executive a road map for implementation, as necessary and feasible.
Who Should Lead The Business?
This is easier said than done, however, in my experience the person to be hired should reflect the culture, values, and commitment of the owners as well as have the capacity to implement the succession strategy. A competent succession executive search consultant will develop a benchmark profile to complement these attributes, looking at decision-making, motivators, and behavioral attributes.
How Does Succession Based Executive Search Work?
Simply put, it’s an iterative process. I mentioned earlier that one of the first steps is developing the succession strategy. As part of this, it’s important to gain agreement on the company profile and candidate profile – then the succession executive search consultant gets to work. Trust me, it will be a laser-focused search. It may take a bit of time, but with focus the process and results will appear.
Wondering What’s Next?
If, as a business owner, you are in that succession-focused company, contact a succession executive search consultant. If you’d also like a measure of your readiness, be my guest and take this complimentary emotional intelligence assessment.