What Does Succession Mean to the Successor
November 16, 2009
Both management and ownership succession tend to focus on the exit strategy of the person in place. It’s about their legacy, liquidity and letting go issues, and, their selection of a successor, either alone or with assistance.
Just as important, though, and often largely overlooked as an equally critical element of the process is the focus on succession’s meaning for the successor. The new owner/leader will have his/her own set of transition issues as s/he takes on the role previously held by a predecessor and moves to make the job/company, his or her own.
Long-term transitions are usually destructive, pitting the outgoing leader against the newcomer, as they take charge and let go. Usually not more than a 3-6 month transition is in order, if that long. While the agreement of sale, may contain a long-term employment/consulting contract for the incumbent, it will probably be bought out rather than lived out. In management succession, the incumbent has usually left the organization or moved into another position without much of a transition (though the exiting person may be on call for a time).
Therefore, organizations with strong work flow processes and documentation tend to fare better than those with largely oral cultures. Another strengthening technique for management succession is to include members of the work group in the selection process. Making them part of the process often helps choose a better successor and begins to form bonds with the new leader even before s/he takes charge.
Whether engaged in an ownership or managerial succession process good systems and document and engagement of the people involved in making the succession work contribute to stronger long-term results. Is your organization well poised for succession?
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