Thinking about my discussions with clients around succession/transition planning over the years, their biggest roadblocks have always been defining, addressing, and implementing their human capital needs. Many times, the solution is ‘outside of the business’ and requires executive search expertise.
Typically, the owner’s primary desire is to take a step back from the day-to-day management of the business in order to: focus on their longer term business strategy; spend less time worrying about how to make payroll; and have more free time. Unfortunately, they don’t feel comfortable making this change because their business is their ‘baby’ and they have no one on staff to take the reins.
Actual Client Situation
The owner was a third-generation family member who had been running their manufacturing company for the last 30 years. The company had always been very successful and the owner and his family had a great lifestyle. However, the owner was getting tired of the everyday grind and was looking for a way to cut back.
After talking with business advisors about selling the business, the owner decided to keep the business and find someone to run the day-to-day operations. Unfortunately, there wasn’t anyone currently in the business who could step into this role, so the owner engaged HCC Partners to define the job, determine an appropriate compensation package (including both short and long-term incentives), and recruit the right candidate.
Executive Search Brings the Desired Results
Fast forward to today and I am pleased to report that we found the right candidate for this business. Not only that, but the business is growing at a double-digit rate and the owner has more time to focus on longer term goals as well as spending time with family and friends.
If this situation sounds familiar, below are HCC Partners recommendations on how to address both your transition/succession planning and your human capital needs.
6 Succession or Transition Planning Steps for ANY Business
1. Take a good look in the mirror and decide NOW is the time to put a transition/succession plan in place. If you don’t decide, you’re putting your business at risk.
2. Decide if you want to sell the company to an outside third party or keep the company and put new leadership in place.
3. Determine what that leadership looks like and feels like. Do you have the right human capital within the company today? If not, why not?
4. Develop a profile of what this new leadership role looks like, what they are accountable for, how you will measure their success, and the type of background and experience that is needed. Also, don’t forget to figure out how you will transition your role.
5. Recruit the best and brightest person(s)—to take your company to the next level. Do it yourself or hire an executive search firm to find the right person(s).
6. Take the time to create the right role for yourself going forward. Keeping in mind this will probably be the toughest challenge you have faced in your career.
Filling key leadership roles, especially during transition or succession planning is never easy and may require an Executive Search Professional to help you achieve your goals. In my experience as both a consultant and a business owner, if you follow and execute according to a plan, you will be successful 99% of the time.
Isn’t it time you find—and hire—the next leader for your company? Jim Geier has the experience, network, and process to transition your company and give you peace of mind. Contact us at 215.244.8110 or jim.geier@hccpartners.com