Dynamic leadership is a vital component of every successful organization. The person at the helm possesses many keys to functions and
strategies critical for the continued viability of the organization. At some point, however, leadership does change.
A succession plan is a tool that every business needs. Some believe that the plan should be in place as much as 5-10 years before the change.
Departure of the leader or business owner for any reason---retirement, death, illness or other cause---will produce a major impact even with a
succession plan in place. But without any plan, the results could be catastrophic! Unintended sale, significant losses, or total disintegration of
the business are only three of the frightening possibilities.
There are several reasons why leaders themselves often avoid addressing the issue of the end of their tenure even when it is foreseeable.
These same reasons often prevent others in the organization from bringing up the subject of an eventual successor. Failure to develop exit strategies
and succession plans are one main reason why too many organizations and business weaken following the exit of a leader. Yet all leadership must change.
The organization which recognizes this and prepares accordingly will be the organization which survives and continues to thrive. Using a business coach or
consultant to assist with the preparation introduces professionalism, objectivity, and greater chance for success.
At HireCoach, we are particularly sensitive to the needs of small and family owned businesses interested in developing a succession plan or exit strategy.
These closely held organizations face increased risk for power struggles, family quarrels, destruction of personal and business relationships, and the end of
a business legacy. Development of a strong succession plan which covers all the bases requires the engagement of a neutral and knowledgeable third party. The
ideal choice of a third party to assist in the development and implementation of plan details is a Business Coach/Consultant assisted by a Personal Coach who will
guide and oversee the intrapersonal and interpersonal elements of an understandably sensitive transition.
7 Common Reasons Why Organizations Avoid Developing a Succession Plan and Exit Strategy