Successful succession unlikely without planning

Russell Bell PHOTO/FILE

You can't spell succession without "success". Succession is an essential concept for today's businesses and complexities will arise which must be strategically met and overcome.

I am helping businesses right now develop effective and strategic succession plans.

Whatever the catalyst for a change of management and/or ownership, one thing remains true in all circumstances - without a structured plan the potential for failure is exponentially higher than would have been the case if one were in place. Of equal importance is the need to ensure the next generation of managers (or successors) has the skills to successfully transition to the next level.

There is plenty of upside to getting this transition right but the downside risks associated with poorly executed succession can crystallise in many ways. In my experience, the most prevalent are the loss of key people when they find the going too tough. This is because in many cases the successors have not had the opportunity to upskill.

Hence the need for training the next generation so they can be in the best position to succeed.

We have developed a training course (it is more like mentoring) which exposes participants to the competencies necessary to lead their organisation. "Leadership for Succession" is an immersion in the key aspects in the transition from operational to management and beyond. We cover such areas as strategic thinking, team and people management and negotiation. The course is registered with NZTE and participants/businesses are also eligible for a 50 per cent discount on the cost.

At the heart of good succession planning is a defined vision for the future together with identifying and retaining the key people who will carry that vision forward.

The training is tailored to the specific needs of the business owner and the participant.

If you are looking at succession or handing over the reins to the next generation a full and frank assessment must be made of current skill sets and the gaps that need to be filled to ensure the achievement of objectives.

Mentoring is of primary importance, supported by training and development. We have provided this service locally and nationally for some time and the course has been refined to the point where our clients report marked improvements in the performance of their successors and their businesses.

Properly executed succession is not only important for local businesses; it is essential for the business community as a whole.

Zenith Solutions is a Wanganui consultancy specialising in business strategy, process excellence and leadership mentoring. If you would like help with anything mentioned in this article please call Russell and Stephanie on 347-9997 or 021-244-2421.