6 Secrets to a Good Succession plan in the business
- A succession plan in the family business is a long-term plan
- The succession is a key project for the survival and successful continuity of the company
- In the succession plan it is necessary to focus especially on the figure of the entrepreneur
The main requirement for a succession plan in the business to be successful is that it not only remain in promises but also be put into practice and the continuity of the company can be achieved .
The succession is a key project for the survival and successful continuity of the company. The first requirement is to deal with it well in advance to do it slowly and well. It should include setting objectives, development, what resources it has, evolution and expected term.
Thus, the succession plans with greater chances of success are those that have the following characteristics:
1. Consensus: The employer must take into account the interests and expectations of each group. You can avoid surprises such as rejections, abandonment and resistance. Denying discrepancies makes it impossible to reach agreements.
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2. Strategic: It should include the market, the company and the family with their opportunities and threats, strengths and weaknesses, currently and in the future, since the successor will have a different scenario from the predecessor. It can lead to a reorientation of the company’s vision and it will always be a good exercise in future projection.
3. Managed with the necessary resources: Many succession plans remain on paper and reach only the level of good intentions. A professional management begins with the design, but must continue with the practical application of each programmed action, with the intervention of those who must participate and with the periodic control of the results. The final control corresponds to the entrepreneur in person since it is his own succession plan.
4. Focused: The sole purpose of the succession plan is to facilitate the generational change in front of the company and it is not a matter of taking advantage of the occasion to fix other problems
5. Realistic: Must be able to be carried out.
6. In the long term: Inheritance processes tend to be long. Succeeded, successor and the rest of involved will need time to adapt to the new roles and to assimilate the new situations that occur in each new phase.
A succession plan in the family business is not an end in itself, but is an instrument at the service of an objective that every entrepreneur will have only once in a lifetime. The important thing is not to have a plan, but to make the succession work. We, from Arriaga Asociados , can help you to do so. Contact us on the free phone 900 1010 775 and ask us your questions.