Member Article

How can businesses undertake a seamless succession?

The difficulties facing Manchester United following the retirement of Sir Alex Ferguson have been highly publicised since the moment David Moyes took over at the helm. Certainly, Sir Alex left some fairly deep shoes to fill, which under the watch of the world’s media, players and masses of fans was always going to be a challenge. Despite that, many feel more could’ve been done prior to the shift at the top to enable a smoother transition.

Like all businesses, no matter what size or sector, Manchester United needed a water-tight succession plan that took the whole business, its employees and customers into account, allayed concerns and enabled the organisation to remain strong and continue to grow successfully. Whilst not all businesses are on the same scale as Manchester United, the lessons to be taken from this remain the same. So with that in mind, what should all businesses keep front of mind if they want to ensure a positive evolution is achieved?

As a business owner, separating a personal opinion from a professional one is crucial when it comes to planning for the future. Recognising when it’s time to hand over the reigns, how far to step away initially and pinpointing who is right to take up the role may well be some of the most challenging decisions a leader will ever have to make, but by taking a holistic view of the business, greater clarity will be gained. Each business situation must be viewed individually; there is no one size fits all solution, but by surrounding themselves with a strong and talented board of management, CEOs will gain a better understanding into the best way to approach the evolution and actually undertaking it should be easier.

For this reason, having a board that the whole business has bought into and trusts will make the process much smoother and is likely to see less disruption or anxiety from employees and customers as a result. It must also be made up of those who share a vision for the future of the business, with the desire and the momentum to continue pushing it forward. This is particularly important during the handover itself. Whether the incoming business head has worked their way up throughout the organisation or are completely new, there will undoubtedly be a period of adjustment. This is where the true value of an experienced board will be recognised; to advise, guide and maintain continuity that reassures.

Those within the business and the customers it serves should always be front of mind; and no where is this more important than when there are changes at the top. Change, no matter what, will provoke uncertainly and unrest if not managed correctly. If the CEO has been in his role for a substantial number of years, there are likely to be concerns over how their departure will affect the business, both internally and externally.

Ensuring customers and employees aren’t given a reason to look elsewhere is vital. Personnel issues need to be addressed; whether its concerns over the integration of new systems, a change in the culture of the business or more serious uncertainties around potential job losses, the board must ensure there is clarity, honesty and openness around how changes at the top are likely to impact those within the organisation. Outlining both the short and longer term factors will not only give employees better clarity on the day-to-day evolution, but also help them understand the benefits to be gained from the evolution of the business.

A similar strategy should be applied when dealing with customers. Focusing on the positives, most notable of which is continued evolution and strength to ensure the organisation can deliver on the changing needs of the customer is important. Failure to deliver reassurance or continuity will rapidly result in board crises. Customers want to know that the service they are paying for isn’t going to suffer, so following the “business as usual” approach should enable organisations to protect against the unnerving that change brings. Beyond this, ensuring client contacts are given the opportunity to meet new management at the right moment will also help create stability across the business.

Planning for the future of a business and putting this plan into action, is certainly a life changing milestone for an organisation, but not necessarily one to fear. Through making the most of the expertise of an advisory team, looking at the business from all angles to understand the best outcome for all involved and ensure continuity, businesses of all sizes should be in a strong position to evolve successfully and seamlessly.

This was posted in Bdaily's Members' News section by Stephen Bentley .