Coaching for Succession
As a business owner looking to a new future, perhaps a new beginning, you are likely to have three concerns in understanding the importance of who and what comes next – Legacy, Liquidity/value and Letting Go.
In seeking a coach/advisor to be as little as a sounding board and as much as a trusted advisor, you need to enlist someone who is both sensitive/empathetic to these concerns and expert enough in the disciplines surrounding them to guide you and/or refer you to the expertise needed.
So, your first select in choosing your coach is, “Is s/he the one for me?” Remember, as you choose, this person will almost certainly know your innermost secrets. Trust and confidentiality are key. So, too, is personality fit. If the person looks like a distant relative you can’t stand, and this will be a distraction, hire someone else. Always trust your “gut.” If something doesn’t feel right, pay attention. Giving up your “baby,” your company, is tough. Being comfortable with your succession coach will make the whole process easier.
Second, your coach’s job is to help keep you accountable to yourself. S/he has to be tough enough to stand up to you when the time comes – and it will. At the same time, s/he can’t be a tyrant.
Third, sit down with your family and/or stakeholders and see how they feel about a different future. Explore what their “dreams” might be. You don’t have to go along with their thinking; it’s just helpful to know at the onset of the project.
Fourth, meet with your coach and share what you have learned. Tell him/her how important or how much of a challenge legacy, liquidity and letting go are for you. Ask your coach to help you devise a coordinated personal/professional set of goals to guide you through the process.
Some key questions you will need answers for (even interim answers work here) and that your coach can work through with you, are:
1. How do you want to be remembered (by group, eg. Family, community, your charities, friends, employees, etc)
2. Can I just walk away, or do I want some kind of transition?
3. If circumstances make it unlikely you will be able to step down right away, can you delay the transition until the company’s situation will permit it?
4. How much do you need – cash and annuity value – from the company to maintain lifestyle and meet other wants/concerns (leaving an estate, healthcare, spousal care, etc)?
5. Are you ready to let go? (in many cases this should be your first question!)
6. If you are “tired” and just want out, can you hang in there to maximize your return?
7. Have you “taught” all you need to teach to those who will carry on?
8. Are you willing to sell your company or would you rather it was adopted by a good buyer?
9. If an employment/consulting contract is part of the sale, are you ready to report to somebody else who’s now running “your” company?
Fifth, bring your attorney, your accountant and your financial planner into the discussion, introducing them to your succession coach, if they are not already informed. Succession is a team effort and each player holds a key position.
Sixth, start the process. In most instances, a good succession can take multiple years, particularly if the company might not command the value needed to meet financial needs after the sale. It all depends on what you want and your coach will be your champion.
© 2008 John Reddish
John Reddish works with entrepreneurs CEOs and other leaders who want to master growth, transition and succession to get results faster, less painfully and in ways that work for them. For information and/or additional similar content go to: www.getresults.com, my succession blog www.successionplanner.com or call 1.800.726.7985.
