Are you sabotaging your succession?

Most successful business leaders understand the need to have a carefully designed succession plan to ensure the sustainability of their operation for the long term. In fact, several of my recent articles have addressed how to create these plans to ensure a smooth transition. While it sounds rather easy to draft and implement such a plan, reality is far different. One of the biggest stumbling blocks are individuals who just won't let go.

I find the ability to let go especially difficult for closely held or family business owners. Even when owners have the best of intentions, they often falter when it comes to actually taking the necessary steps to allow for an effective transfer of power. This reluctance to engage in the very behaviors needed to make the transition process smooth ultimately can sabotage a successful succession. Inevitably in these scenarios the individual “waiting in the wings” is at best frustrated and at worst leaves the company feeling angry and resentful, which negatively impacts family and personal relationships, along with the business.

Identify Your 'Transition Terrors'
Many owners are unknowingly paralyzed by what I call “Transition Terrors.” While some of their reluctance may be a legitimate concern over the successor's ability to effectively lead the organization, more often than not their fears are more personal. Some of these “terrors” are: difficulty accepting aging and their mortality; unclear understanding of what to expect in retirement; not having outside passions, hobbies or interests; fear of a loss of identity; and concerns about their financial well-being.