|Strategic Planning Information|
Art of Succession Planning
Succession planning, like any business acumen, is both an art and a science. That is to say, there are many proven strategies that can and must be followed so that successful transition can occur.
Too often organizations address the succession challenge through the rearview mirror. They wait for someone to step down or even worse, be removed. Then and only then do they entertain thoughts of who or what should happen next?
One of the reasons little forethought is given to succession is evident in the fact that it rarely shows up in corporate business plans. Companies are quite diligent in forecasting-out 3, 5 and even 10-years but most of what they plan has more to do with finance, P&L, product evolution and little or no emphasis on who or how future leaders will captain the corporate ship.
It's no secret senior executives, especially those new to the position, see themselves as bulletproof. In their minds, talk of succession is analogous to talk about potential failure - they will be there forever - so they have little appetite for negativities like that preferring rather to concentrate on positive things like how they will make the company successful - perhaps in perpetuity?
Professional consultants like Pat Micallef, VP of international consulting firm The Meta Group, takes a strong position when he says, "The success of any corporate succession, is predicated on the strength of the company business plan, and, it goes without saying," he says, "leadership change is integral to future corporate strategies and should be built-in. The success of which, however, [succession planning] hinges expressly on whether or not the architects of the plan have a clear understanding of three important criteria:
a) What will it take to keep the company running and profitable?
b) What will it take to Grow the company? and,
c) What will it take to Change the company?"
It is here we begin so see more clearly that succession planning is an integral part of a much larger stratagem, more complex, perhaps, than seen at first blush.
Senior executives rise to the top based mostly on their unique and proven skills tacitly believed by corporate board members or company owners to be the stuff necessary to champion the needs of the corporation. In a perfect world, the corporate cream rises to the top in a comfortable and timely fashion ? but we don't live in a perfect word ? in fact, one could argue we live in a more imperfect world than we'd like to believe.
With that in mind, companies and industries the world over, are addressing the reality that a decade from now, their entire business landscape will be completely different!
Randy Moore, VP of York Region based Mister Transmission, knows the future looks bright for the products and services he sells. Mr Moore knows also, in a very short time, customers will have a greater choice - thanks to the Internet ? to acquire similar solutions. The fact that Randy sees this as more of an opportunity than a challenge is recognition that even his marketplace is not static - this is a tribute to his positive and assertive outlook.
Company architects are [or should be] focused more diligently on grooming future executives on the strategic needs essential to run the business profitably in their NEW marketplace in the near future.
Let's face it; few executives get by today without a reasonable understanding of how to work a computer, the Internet, Excel, PowerPoint and so on. Just a few short years ago, it wasn't uncommon for senior exec's to rely totally on assistants for technical support - rendering their [exec] desktop computers as entertainment devices showing pretty fish and flying toasters.
What will tomorrow's corporate executives need to know? Will they need to be experts at computing? Will an MBA Degree be enough? Will the future of the company dictate a better understanding of Corporate Law ? International or Domestic ? Human Resources Issues, Strategic or Crises-Management expertise, Techno-Mechanical knowledge? ? etc.
In order to groom the next generation of corporate management, planners must be absolutely clear on what [broad-based] tactical skill-requirements will be essential for corporate leadership and growth. A clear and unequivocal business plan in tandem with future leadership skill-set-deliverables is the integral ingredients necessary to ensure the success of leadership succession.
No one's saying the CEOs of the future have to be experts in all fields or in all disciplines. Nevertheless, it will be increasingly more important that senior exec's have a comprehensive understanding for the challenges and disciplines for which they are ultimately responsible and therefore must manage.
Although for some the challenge to find or make the next great corporate leader may seem daunting, we can take some comfort in what former President Ronald Reagan once said, "Great leaders are not measured by what great things they do but rather by what great things they get others to do."
Succession Planning is strategic, tactile and deliberate involving a clear understanding of how corporations need to change in lockstep with strategies designed to groom future leaders to meet the need. Successful 'Transitionists' understand Succession Planning is both an Art and a Science.
About The Author
Paul Shearstone aka The 'Pragmatic Persuasionist' is one of North America's foremost experts on Sales and Persuasion. An International Keynote Speaker, Author, Writer, Motivation, Corporate Ethics, / Time & Stress Management Specialist, Paul enlightens and challenges audiences as he informs, motivates and entertains.
To comment on this article or to book the Pragmatic Persuasionist for your next successful event we invite to contact Paul Shearstone directly @ 416-728-5556 or 1-866-855-4590
Why Six Sigma Will Work in Healthcare
If ever there were an industry where we want zero defects, it's healthcare. Patients, medical professionals, and healthcare administrators all want mistakes eliminated and quality and efficiency improved. Although most industries have undergone some type of data-supported, systematic, quality-improvement process, healthcare still has not. Medical and technological advances continue to outpace process and education adjustments. Demand and expectations for medical care are increasing. Inefficiency also leads to(causes, brings about, etc.) overcrowded emergency rooms, customer complaints, and lost revenues.
If You Dont Focus, Innovate and Evolve, You Die
After 128 years of business, a household word, Montgomery Wards, Inc., closed their doors forever and filed bankruptcy.
Your Business: Will It Have A Happy Ending?
"Begin with the end in mind," says Stephen Covey in his book Seven Habits of Successful Living. Those who have created a successful business know it does not happen without planning, hard work, and a little luck. Yet most have no plans for leaving their business, ever.
Cost-cutting Essential to Maintaining Profits
Why cut costs now? Efforts are multiplying to cut costs wherever possible in order to achieve or preserve high profits. The resulting benefits for all of a company's employees should be obvious.
Thinking Like A Farmer
One of the difficulties we face in our industrialized age is the fact we've lost our sense of seasons. Unlike the farmer whose priorities change with the seasons, we have become impervious to the natural rhythm of life. As a result, we have our priorities out of balance.
5 Strategies That Will Boost Your Business Productivity Today! - Part 1
Building a dynamic small business is a constantly evolving, increasingly demanding role.
The Six Sigma Method and Design of Experiments
Six Sigma is becoming a proven approach for businesses and organizations to improve their performance. The spectrum of companies actively engaging in Six Sigma today is wide from industrials like Celanese, Caterpillar, GE, Honeywell, and 3M to service/retail organizations like Starwood Hotels, Sears, and Home Depot. Six Sigma has even started in the financial industry with Bank of America and JPMorgan Chase initiating major deployments in the past two years. Probably the most exciting area is in the public and healthcare sectors with success stories emerging from city government and John Hopkins Medical.
Mobile Franchise Business Expansion Strategy
If you own a mobile franchise business and wish to expand you will need to have a strategy that involves your franchisor. Additionally if you are a franchisor it is important to have some sort of policy in place in advance so that there are no hurt feelings as franchisees expand.
Planning For The Slow Season Of Your Business To Increase Sales
Every business experiences slower periods. For some, they sell more during the Christmas season while others move at a snail pace. Some sell more during the summer and others less. The key is being aware of your seasons and alternatives available to solve the challenge and change the results.
Do You Really Need a Business Plan?
"I don't need a business plan."
Documenting the Exit Strategy in Your Business Plan
All investors greatly desire and are motivated by a clear picture of a company's exit strategy, or the timing and method through which they can "cash in" on their investment. This picture best comes into focus when the key valuation and liquidity drivers of the company are clearly delineated. An excellent method to accomplish this is through descriptions of comparable firms that have had successful liquidity events, either through acquisition, merger, of initial public offerings (IPOs).
Advice To Manufacturers Creating A Business Plan
If you are a manufacturer wanting to use your business plan to attract investors, then your plan must do two things. It must:
Idaho Market for Automotive Businesses; Doing it Right
Anyone who has been watching the Idaho Market Carefully for auto services, knows that the market is ripe, ready and growing. I visited Southern Idaho after establishing franchises in Northern Idaho three years ago for our auto aftermarket franchise company. We have surveyed the competition as well and found that much of the original competition in these Southern Idaho markets is unsophisticated and not setting any speed records. Of course to their benefit it appears that they are not trying. But the area is growing and it is time for them to wake up and smell the coffee and get the show on the road. In the mobile auto detailing and car wash business there is much opportunity indeed.
Writing a Business Plan for Success in Business and for Funding
Writing a business plan to help you direct and manage your company is a key part of starting you new company that will help lead you and your company to success. Creating a "living and breathing" business plan makes that success even easier to reach. Many people feel that the sole purpose of a business plan is to get funding, and write a plan that is targeted to that audience. This plan should be considered a piece of you Fund quest documentation, but should not necessarily be edited to meet each funding source.
Making a Decision to Outsource: Strategic Constraints
Many companies are reluctant to dive into outsourcing ocean because of various reasons of strategic nature. As far as strategic goals are touched upon, managers are concerned with the following issues:
Have You Identified the Enemy?
One of the most powerful driving forces in human nature is competition. The desire to overcome something or some company, the need to win, the cause, can in many cases be more important than the day-to-day work of the company.
The Impact of Price Popularity on Profits
The goal of almost every business owner is to generate a profit either for themselves or their shareholders. This can be challenging at best. So much thought and effort go into running a business, accounts payable, accounts receivable, dealing with vendors, customers, etc. Because of this people sometimes do not focus on one of the most important factors- pricing. Knowing how much you can charge for your product or service is invaluable information. Businesses typically want to increase volume and prices at the same time. In a perfect world that would be easy to accomplish, yet we do not live in a perfect world. So just how do businesses go about deciding how much to charge for a product or service?
What is Your MSP?
For many consumers and producers, MSP is an acronym for Manufacturer's Suggested Price. Today, I would like you to consider a different definition for these commonly used letters ?Marketing, Sales and Profitability.
In Business Planning, Competition is Good
When developing the competition section of your business plan, companies must define competition correctly, select the appropriate competitors to analyze, and explain its competitive advantages.
Pressure Washing Entrepreneurs Can Help With Government NPDES Permits
If you own a pressure washing business one of the smartest things you can do is get involved with the local and regional enforcement for storm water environmental laws. The reason being is they do not understand the washing process of the industry and you can assist them with pertinent information. Secondly you learn about opportunities in the market and third, you can prevent really bad legislation which could potentially put you and your business out of work.
|home | site map|