How to Tell Your Successor (and Your Team) You are Moving On
Published: November 1, 2011
Having lived the succession process personally, I suggest that the sooner the topic is discussed and finalized, the better. In my case, I was in a second generation family business with no 3rd generation to step in and take over. Our CEO needed to make a decision on who would be the next president and future CEO of their business.
Going forward, our business had two choices as to who was going to run the company: myself and the CFO. From the beginning, our CEO had an open and honest discussion about both of our strengths and weaknesses. We were both qualified internally, but the key factor in this decision was going to be based on which one of us had the strongest external support from the industry – who had the best relationships with industry leaders outside our office.
Most owners wait far too long to make their decisions. It is important for business owners to realize just how much it can hurt or impede the success of the company by dragging their feet in the decision making process.
Most of the entrepreneurs we talk to have great gut instincts, but very few act quick enough when it comes to the successor Issue!
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