3 keys to overcoming transition terrors for smooth business succession

When a family business founder or leader is starting to think about succession plans, they usually go in thinking positive thoughts — about retirement, about their successor and about the company and life they have built. 

What they don’t think about is the work they need to put into a succession plan, and the many roadblocks that will appear — mostly due to their own self-sabotage. It may sound harsh, but it’s the truth. All my clients in this regard have good — even great intentions. Most understand the need to create a succession plan. But too few truly understand what the process entails, and the often-difficult road ahead. The planning phase usually starts off swimmingly: We make progress in identifying goals and discuss what is necessary to ensure their business remains sustainable into the future. We also lay out steps for a successful transition to the next generation. After this planning period, everyone is usually feeling pretty great. 

But when it comes time to put the plan in motion, things tend to fall apart. We have discussed many of the reasons why in past articles — founders not ready to give up the reigns, successors having a lack of experience or a difference in opinion on how to run the business. The list goes on. But what all these "transition terrors" have in common is that they are largely driven by fear, making them more difficult to identify and address. You can’t figure out emotions on a spreadsheet. But with hard work and a hard look in the mirror, a smooth succession can happen.