Moving Words – Succession
Timothy Brady
“One thing at a time, all things in succession. That which grows fast withers as rapidly; and that which grows slow endures.” – Josiah Gilbert Holland
I’m sure you have a retirement fund set up and are contributing to it on a monthly basis. However, have you thought about who’s going to lead your moving company once that wonderful day arrives in which you receive the gold watch and begin your adventures in retirement? You’ve toiled and worked to build your company to the success it is today, so what do you need to do for its success and prosperity to continue into the next generation?
Data shows that only 30% of businesses survive the transition from first- to second-generation ownership. Succession planning needs to start from day one, when a business opens. And the longer the company is in business, the more crucial it becomes for your business to continue its successful operation into the future.
First and foremost, don’t assume your children or other family members will have the passion, drive and desire to carry on the company. While, in many cases, this is the dream of any family-owned business, it’s not always the reality. So, if family succession is your dream, just make sure you have a plan B when your daughter and/or son announce they have other dreams and aspirations.
Keep in mind, as your business and you both grow and age, your plan has to change as your season of life and business change. Most business owners make plans for when they retire, but it’s important to be prepared at any time, as health issues, accidents and other life events can suddenly interrupt the best-laid plans.
It’s also important not to let the ego of the company’s founder get in the way of transitioning from his/her leadership to that of the chosen successor(s). It’s necessary to develop a timeline for succession. Many times the next generation wants to take the reins and move the business to the next level, and the older generation won’t let go.
The founder must be willing to step down and allow the successor to move into the leadership role long before it becomes crucial. To do so, the founder becomes the CEO Emeritus and is there to mentor, but they must delegate all authority to their chosen successor. Otherwise, the process often doesn’t happen until the successor is frustrated because they can’t step in to run the business.
When changing over to new leadership, it’s critical the new boss earns the respect of the management team. The old guard (owner) can give their successor a job, a title, and a paycheck, but respect from the management team and employees must be earned. The founder must invest the time to fully train their successor in all aspects of the business so that respect is indeed earned.
The most important aspect of selecting the one or ones who will take over the company you built is once they’re in the position, you must fully trust them. Think of it as the way you trust your most seasoned and experienced van operators, the ones with great customer service skills and low claims. What I mean is, if you took your 10 top van operators and asked them to pack and move 10 identically furnished houses, you can be assured that not one of them is going to pack and load their vans the same way. Each one will load it correctly, but no van operator’s tier will look the same as another’s. The same will be true of your successor; they won’t be a carbon copy of how you ran the company, but if you choose wisely, they will lead your company to the next level.
“Life is a succession of lessons which must be lived to be understood. All is riddle, and the key to a riddle is another riddle.” – Ralph Waldo Emerson
