How to Begin Succession Planning

What are you really working for? Is it to build a legacy brand or to secure a restful retirement? In actuality there is no reason why you can’t accomplish both of those goals. From the moment we start working we look forward to the day when we can stop working.

Perhaps you have a bucket list that includes traveling, taking up a hobby or just reading every day. Whatever your retirement plans might be you want to make sure you the kind of financial security which will allow you to maintain a decent quality of life.

As for your business, you don’t necessarily want it to come to an end just because you’re ready to scale back. When it comes to your succession planning here are some of the steps you can take to be ready.

1.      Plan Ahead

Just as you plan on retiring some day from the moment you start working, you should also be thinking about how your business will carry on when you move on. This doesn’t mean finding a successor in the first year of your operation but it should be something that is always in the back of your mind. You might identify a particular executive who has the right stuff to take over some day. If so, you could start to groom them so that they can be ready to be a CEO.  Just don’t keep your intentions a secret. If you’re going to invest your energy into an employee let them know what you’re thinking. That will have them on the same page and working towards a common goal.

2.      Build the Right Team

As you already know, starting a business is not something you can do on your own. The same holds true for your succession. You need the same accountants, lawyer and advisors you used on the way up for your exit.

3.      Last Will and Testament

The worst case scenario would be for your business to carry on without your input because of an untimely death or debilitating illness. This is why it is essential for you to prepare a will. There might actually be a requirement in your corporation bylaws which states you have to have this type of document in place. Estate planning will allow you to designate the representatives you want to have in charge of your business. Keep in mind that there will always be opportunity to amend the document as conditions warrant but it’s best to have that foundation in place. This is also the reason why you should have a comprehensive insurance policy in place as well. Benefit payments could help with the continuation of a business.

4.      Think About Your Family

Many businesses become a family legacy with the ownership being passed down from generation to generation. Although noble, that isn’t always practical. If you do have children who you would like to take over the business make sure that is something that want to pursue. That last thing you would want is to force them into a career they have no passion for. 

The Challenges of Female MBA's

With few exceptions, the business world has never been a bed of roses for women. In a society that still views business primarily as a "man's world," women, despite their capabilities and qualifications, continue to fight an uphill battle for equality that is due them.

A recent study conducted by Catalyst, a non-profit organization for women in the workplace, compared 9,000 male and female MBAs entering the workforce over a ten year period. 46 percent of the males received entry-level positions while 60 percent of the women were hired at an entry level, despite the same level of professional experience for both gender groups. Likewise, the men earned $4,600 more at their first jobs.

One of the reasons given for the parities is not prejudice but practicality. Most companies hire employees with a long term plan in mind. It is anticipated that young women entering the workforce after college will have children within a certain period of time, thus disturbing the succession planning of the company. Thus, businesses prefer to invest more in men, anticipating longevity with the company. Women, themselves, admit that family commitments may disrupt their careers and, therefore, they tend not to lobby and pursue the top positions.

The point was driven home in another study conducted jointly by the Columbia Business School and the Women's Executive Circle of New York. The study went beyond entry levels and found that the disparities plague women throughout their careers. In examining women's roles at the 100 largest public corporations based in New York, less than 11 percent of the C-level positions were held by women.

Women are making strides in the business world but the progress is slow. Companies do want equality but this will only occur when the business world attunes itself to the needs of the cultural world, allowing the business world to benefit from the many qualified and experienced women available, while modifying to meet the needs of the women's lifestyles.

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