A guide to resilient succession planning
I recently had the chance to sit down for another episode of Resilience Talk, and we tackled a topic that’s been buzzing in the economy—the “Silver Wave.” This phenomenon is all about the massive group of baby boomers heading into retirement and the significant challenge many face: the absence of a succession plan for their businesses.
From my perspective, the heart of this issue isn’t just about succession planning, a term you hear tossed around a lot, especially in family business consulting. It’s about the underlying hiring practices that fundamentally support or undermine the longevity and resilience of a business. Many family businesses tend to be somewhat insular, which can become a critical vulnerability as founders age.
Imagine this: you’re deep into your career, perhaps thinking more about your golf swing or beach time than the daily grind. But then, it hits you—who will take over the business? If you haven’t laid the groundwork for a smooth transition through solid hiring practices, you’re in for a rude awakening.
This situation isn’t uncommon. Many businesses excel at bringing in workers but falter at the executive level. The practice of promoting from within, while valuable, can lead to a leadership echo chamber, missing out on fresh perspectives and skills critical for future growth.
In our conversation, I dive into how proactive, external hiring is key to building a business that doesn’t just survive the transition from one leader to the next but thrives. It’s about looking forward and asking, “Who will run this department in 10, 20 years?” And not just waiting until it’s time to retire to scramble for answers.
For family businesses, the stakes are high. It’s not only about legacy in the traditional sense but ensuring the business can sustain its employees and their families for the long haul. The path to resilience involves prioritizing the important yet not urgent tasks now, rather than being blindsided by them later.
Ensuring your business is prepared for its next chapter is a complex, nuanced journey, one that I’m deeply passionate about. Whether it’s navigating the challenges of hiring externally or envisioning the future of your company, it’s a process that demands foresight, strategy, and a bit of courage.
I’m looking forward to sharing more about the mechanics of building a resilient business in an upcoming video. It’s about giving you the tools and insights to prepare your business for the future, ensuring a legacy that endures beyond the tenure of any single leader.
VIDEO
Hiring Process Simplified
In this video, I discuss the challenges of hiring and provide a step-by-step guide to creating an effective hiring process. I share insights on defining roles, evaluating candidates, conducting interviews, and onboarding new hires. By following this process, you can improve your hiring success and avoid common pitfalls.
NEWS OF THE MONTH
Who: A Method for Hiring
This is a great resource on behavioral interviews. I do not agree with the concept of tying bonuses and compensation to role objectives, but you are smart enough to read between the lines.
AGI Management
My great friend, John McCarthy, has a great view on hiring & THE PROCESS, which gets us … consistent and predictable results. Check it out.
Join a community of like-minded family business owners.
