In owner-run companies, the success of the company is often heavily dependent on individual management personalities, their ideas and know-how. The future of a company without an established succession plan becomes a sensitive and critical issue once the managing director approaches retirement age or is no longer able to run the business for health reasons.
Effects of uncertain succession
Business owners are often unaware of the actual effects and uncertainties among the staff, as hardly anyone would dare broach such a sensitive topic within the company.
Who are potential successors?
In many cases, there are several potential successors within a family. If no one in the family is prepared or an internal family succession still needs time, an external successor should also be considered as a viable option. In any case, succession planning is something that needs to be actively approached.
An unclear situation generally has negative effects
The designated successor already works at the company, but there is no set date for him or her to take over. And no written agreement. No clarity how the tasks will be distributed in the future to prepare for a successor. No plans on how to establish a balance between the traditional and the new. In a worst case scenario, the potential successor may be internally discredited before he or she can actually take the reins of the company.
Familial and emotional ties make it difficult to plan the succession oneself
It’s no wonder that succession planning is held up in so many companies. After all, the issue is doubly emotionally charged – on the one hand the business owner has a close emotional connection to his or her company/life’s work and suddenly needs a healthy distance in order to make these arrangements, and on the other hand family and emotional ties can also get in the way, because the owner wants to avoid hurting anyone’s feelings.
A neutral outside view and a realistic assessment helps
As interim managers with a neutral outside view, we can work with all the stakeholders to develop a clearly structured company succession plan and help implement it in an orderly fashion.
We approach sensitive situations like these with the necessary empathy and finesse.
What’s important to us:
What is our approach?
An interim manager engages intensively with the company culture. What is good for the company? How can a smooth transition be made from one generation of entrepreneurs to the next?
We are committed to ensuring that your life’s work has a stable and healthy future!
If you are interested in more information about this topic.