Family Succession Plan - Section II
The following items need to be discussed and plans made for in the family business:
q Leadership succession.
q Ownership transfer.
q Business and Strategic Planning
q Communication policies.
q Compensation policies.
q Personnel Policies
q Rights and responsibilities of non-family employees.
q Rights and responsibilities of in-laws.
q Creating change.
q Development of a management team.
q Long-term planning for the business.
q Obtaining financing.
q Financial equity among children.
q Resolving conflict.
q Hiring and firing practices.
q Sibling rivalry.
q Organizational relationships.
q Working with advisers.
This list should be distributed to every family member. Responses should be compared and issues of concern to family members identified. Unresolved issues should be discussed and polices established to resolve them.
Developing a Succession Plan (Checklist)
The lists and summaries that follow are GUIDELINES and should be supplemented by he advise and council of your business advisors.
Elements of an Effective Plan
Criteria
q What do you want to accomplish
Time Frame
q When to start your plan? ____________________________________
q When should plan be complete? _____________________________
Players
q Who is involved in the decision making?
q Who will be affected?
" People support what they help create."
Without a plan, you won't know where you're going or how to get there.
Putting the Pieces Together
Define Owner/Founder Goals and Business Goals
q What do I want as my business grows?
q Do I have a vision of the future?
q Have I communicated the vision to others?
Analyze Your Business
q Structure
q Market
q Operation Policies
q Personnel
q Financial Condition and Future
Create an "Advisory Team" to Help Create/Sell/Implement the Plan
"Two Heads are Better than One -- Three Heads Improve the Vision."
q Staff for Strength -- Marketing, Financial … etc.
q Analyze and replace existing advisors if required.
q Go outside if needed.
