Succession’s Great Fear – Irrelevance
May 11, 2009
Don't Let your Busines Fears Make you Feel Invisible
Studies I read and my own experience tell me the same thing – fewer than half of all companies have ownership succession plans. It happens in some very large companies and it happens in most small businesses. And, in fact, some business succession plans that exist are merely print exercises to allay the fears of share- and stake-holders, with the leader having no real intention to, or desire for, stepping down.
Is it fear of planning? Is it fear that by identifying successors in advance, they may try to force the leader out prematurely? Is developing an exit strategy merely a low priority?
Thirty years in the business tells me succession planning’s greatest inhibitor is the leader’s fear of becoming invisible – irrelevant! Not wanting to go – ever – is part of it. For many leaders, particularly founders, the entity (profit or nonprofit) is psychologically tied to their own self-worth. I feel this same fear in my small company – I want to do this forever, and know I can’t.
So many of us put succession off. We tell ourselves it won’t happen to us – YET! We tell ourselves, and our possible successors, they aren’t yet ready to assume control. We turn a blind eye to the importance of who, and what, comes next. WE know next, counts, but that’s for tomorrow.
Some of us have no plan for tomorrow and so the fear rises to the level of terror. What would we do if we didn’t come in to work?
I have a friend who I helped forge a second career as a professional director after his “corporate” days were done. His post-work plan called for serving on a few boards, playing tennis (and, as I recall, golf), traveling with his wife and family, kicking back a little and just savoring life. Two years into his plan, he was busier than ever with his board work, his games still wanting love and birdies, kicking back was not yet on the calendar, but, he was spending more quality time with his wife and family.
Like many Boomers, I struggle with the fear of becoming invisible, irrelevant. But I know that fear is like the childhood fear of monsters in the bedroom, I know better. I feel it, but I know better, and try to help others because if our ideas, our businesses, our legacies are to survive and prosper, it is a fear we must all overcome.
Is this fear standing in the way of a crafting a succession plan that works for you?
(C) 2009 John J Reddish
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5 Responses to “Succession’s Great Fear – Irrelevance”
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John:
Your observation about the fear of irrelevance is astute. So many business owners define themselves by their business and contemplating their exit is to contemplate their own mortality — so doing nothing becomes the plan. In the most unhealthy example of succession planning gone awry, business owners do no planning knowing full well that on their death their business will fail. Only a narcissistic business owner will attempt to manage their reputation and legacy from the grave ensuring that even in failure they are celebrated for their own magnificence. The truly great business leaders know that timing an exit from a business is as important as know when to start or invest in one. In western culture we fete longevity of a firm as the goal. In reality a business, like everything in the natural world has a beginning middle and end. The smart money always knows how to find the end before the end finds them. Congratulations on a great blog…I follow succession planning through Google Alerts and you have taken business owners beyond the usual bla bla bla……succession planning is always positioned as a tax strategy and misses the key points that you raise. Well done.
Dear John:
Your observations of Boomer Executives scream “Mid-life transition” when looking through the lens of Carl Jung’s theory of individuation. Jung’s theory is that there is a pattern to the way we age and that mid-life is the time when we separate from the collective to move more toward Self. Most Boomers, given our age, are in this stage of life.
Jung’s theory of psychological type would suggest that based on our personality type, there are 4 general patterns with regard to how we face our mid-life transition. It colors the questions we ask and the direction we take. Boomer Executives would benefit from some coaching on MBTI type and type development.!
Because of its success, many people have had an introduction to type and, via the MBTI, have some understanding of their type. Certainly the dimension you have commented on is one that could use significantly more attention. It could certainly contribute to making it easier to “let go,” a challenge for many of us Boomers. Thanks for your comment.
John,
I found you by following the insightful post you made on blog article “How the Recession and Social Media Parallet Each Other.” http://microgeist.com/2009/03/how-the-recession-and-social-media-parallel-each-other/
I left a Corporate job after almost 30 years in 2007 at the age of 48. I too thought I would retire, relax and spend time with my family. I have done many of those things, but have found myself bored way too often. I’ve been doing a lot of volunteer work and had wonderful time with my family.
The time off gave me the opportunity to take a 5 week road trip with my family (a wife and 3 kids, then ages 15, 13 and 10). I also had the privilege of being my mom’s full time care giver during the last 4 months of her life. A real gift I was given by not working full time.
I plan to follow your blog/website. Social media is still a bit new to me so not sure if I’m visiting your blog or a website.
Ed Adams´s last blog ..Branson, MO Trip
emm.. funny :)