Barbara Ashton
CFO: What happens if we invest in developing our people and then they leave us?
CEO: What happens if we don’t, and they stay?
I have no idea where this quote originated. What I do know is that I posted it to my LinkedIn profile and almost instantly received over a thousand likes and shares.
One would think I would be ecstatic to see so many rallying around the importance of investing in their people. And I am. However, sadly, this is not what I see when I’m talking with many owners and managers of small and medium sized businesses. They instead seem to be looking for a magic bullet of sorts. They’re in pain, you see, because of not having a succession plan in place.
These same orchard and winery owners often feel overwhelmed. They’re looking for a way out, usually for very good reasons.
In 2006 the CFIB published an article which stated that fully 1/3 of independent business owners, mostly baby boomers, planned to exit their businesses within the next five years. That was of course before the real boom fell. Many of these owners’ exit plans are now pushed out by another ten or more years.
Add to that, less than half of these boomers have any sort of succession plan in place. And add to that the fact that less than one-third of family-owned businesses survive to the next generation. This clearly shows that the kids have either no interest, or more likely, they haven’t been properly groomed. Do you see where this road is leading?Failure to hire and build the right talent is the number one reason businesses fail.
Not having an active succession plan in place exposes your company to enormous risk. Even if your people are fully engaged and you boast about having very low turnover, you still need to prepare. People will leave, and that’s a fact. Spouses who have to relocate for career moves, competitors who woo them away, sudden illness, or worse, death; these are all very real possibilities. A succession plan that you can put into action is one of the best forms of business insurance you can have.
Where to begin?
This first exercise may be as much of a learning experience for you as it is for your people. It is important to be delicate and not over commit. Launching a succession plan isn’t like launching a new brand. This is one example of how to test the water while moving forward at the same time.
Your organization, your people, their talents, your collective future; all softly rolled into one.
- Start with your org chart and mark each of the key positions that have real impact on your company. Under each position, without thinking about who is in the role now, list the top three qualities that are on your wish list of most desirable skills for that role.
- On a separate piece of paper write down the name of each of your high potential employees across the top of the page. Under each list that employee’s unique values and qualities which make them valuable, regardless of the role they are in.
- Pick one behaviour, value, skill or quality that most stands out about that particular person. Think in terms of where they most add value to your company.
Now go back to your org chart and see what other roles your high potential employees might also be suited to. Then list the areas that they need development in and notes about how this might be accomplished.
Meet with each of these key hires and review your ideas and analyze their response. You can set up appointments to discuss your next five-year plan, what you are considering to put down on offer, and what you are looking for in return with those who have already demonstrated to you they are worth giving a shot. The process will take some time to put together properly. Holding regular meetings on a timeline is a proactive way to demonstrate your honesty to your people.
Mark the ones that are not ready and start taking steps to replace them with talented people who have the ambition and loyalty to work through what it takes to develop themselves and build your company. At this point you may need to look outside your company, and perhaps even your industry
Slow is Good
Don’t make the mistake of listing one or two people as successors for too many positions. Remember they are going to have to handle their own jobs while simultaneously being groomed for a potential next role. So take it one person, one role at a time but always keep two people in mind.
Providing opportunities to experience one or two key aspects of the job at a time will prepare them for real game experience and let you see how keenly they step up to the challenge, or not. Shorter stints that grow into longer periods combined with debriefing and discussion can only help ambitious employees improve.
There is no magic bullet. But when you have a workable plan and break up your succession plan into bite-size, manageable pieces, then each small win adds up to one great victory.
Barbara Ashton CEO and Executive Search Specialist, Ashton & Associates Recruiting.
Offices in Kelowna and Kamloops. Serving Employers of Choice throughout British Columbia.
Barbara and her team can be reached at 1-800-432-6893 or talent@ashtonassociates.com