Are you a CEO considering your retirement? If you have a qualified Rising Gen within your ranks, that can greatly improve your chances for success in transitioning from one generation to the next, but only if that up-and-comer is identified in time and properly groomed for the role. And don't forget that you will also need support during this transition.
Even if you don't expect to retire for several years, consider the following 10 critical steps to ensure the long-term viability of your family business and guide your ongoing journey for transitioning to the next generation.
- Confide in your friends and family about your goals for retirement so they can support you through the process.
- Speak with your board and senior leadership about your plans for the future and invite them to help shape the path forward with you.
- Develop a high-level roadmap and transition timeline to guide your succession planning and transfer leadership to the next generation.
- Assemble your multidisciplinary team of experts (attorneys, accountants, other family advisors, etc.) to facilitate your transition.
- Review your current work responsibilities and develop a transition plan so that someone else can perform your tasks in the future.
- Identify and groom your successors, discussing their future aspirations and providing targeted coaching to develop their capabilities.
- Engage a transition coach to help you shift from manager to mentor and identify your go-forward inspirations for retirement. Do the same for other retiring leaders in your organization.
- Consider non-equity compensation and other incentive strategies to retain your key leaders, especially any non-family successors.
- Call “Transition Timeouts” and empower others in your family and on your team to do the same any time emotions start to get in the way.
- Always prepare the business for sale simply to improve systems, processes and overall performance for the next generation.
This clearly isn’t a complete playbook for managing your entire transition. It does, however, present a strong foundation for getting started, so don't wait to begin. The longer you do, the more options available to you now will likely disappear!