Strategic Planning and Succession Planning: Expertise and Time Frames

As we have been discussing, strategic planning and succession planning are two different long term endeavors that have many similarities. In my previous post, we looked at the differences in the goals and scope of these two very important leadership and management initiatives. So that we can achieve even more clarification between these two, we will consider the focus and term of strategic and succession planning and how they differ. If you have a succession plan you have a strategic plan because the Succession Matrix® considers strategic planning one of the ten interdependent factors essential to a complete succession plan. However due to the difference in scope of these two endeavors, it is important to remember that just because you have a strategic plan, you do not necessarily have a succession plan. Although a facilitator is needed for both of these similar endeavors, the background and perspective of a strategic planner and a succession planner are very different. A strategic planner’s primary prerequisites are an understanding of the operational circumstances of the industry, understanding of an effective strategic planning process (there are multiple approaches) and strategic planning experience which will provide much needed leadership to a group that generally wishes they were back on the job versus hanging out in the boardroom for a couple of days. In contrast, a succession planner must have a journeyman’s understanding of each of the factors of the Succession Matrix® including strategic planning as well as an understanding of the interdependent nuances of all the factors. The behavior, knowledge and experience expectations are much higher for a succession planner. At any given time the succession planner can be put on the spot regarding any issue from one of the ten factors of the Succession Matrix®. Although succession planners are typically an expert on one or more these factors, they do not have to be an expert in all the factors. However, succession planners must minimally have sufficient knowledge and/or experience with all factors to be conversant and in the absence of expertise, know where to go to get answers. Moreover, the succession planner carries much greater responsibility because they must personally have or have access to specialized core competencies that can effectively address all issues identified by the succession planning process. And finally, the term of Strategic Planning considers a time frame of two to ten years or as far out as resources can be confirmed. In the absence of confidence in forecasted resources, setting goals is no more than visioning and strategic planning is a waste of time that could otherwise be spent in the development and confirmation of resources. In contrast, the term of succession planning is ultra long term; a cross generational consideration of 30 plus years that speaks to continued success through the next generation of owners and managers. And there you have it, the similarities and the defining contrasts between strategic planning and succession planning. Think I've left out any other differences between strategic planning and succession planning? Feel free to comment below with your additional differences.

Forget About Accountability, Focus on Commitment

Dan Schneider, one of my partners, shared with me this post below on driving great results without creating a negative environment. “We desperately need a culture of accountability around here!    How can I make people more accountable around here (including, in some cases, my children, my parents, my spouse, my siblings)?” Well, you can use your power and emotionally or financially abuse people; but that may be what’s gotten you into a commitment bind in the first place.  If you rely mostly on organizational power and position to drive results, you will generally wind up with malicious compliance. Why?  When most people think about accountability, they usually picture heads rolling, feet held to the fire, nose to the grindstone, or any other metaphor that refers to people being punished or hurt in some way for not having performed at a high enough level (which is usually either ill-defined or undefined and, on occasion, unrealistic). How long would you want to commit to an organization – business or family – that operated like that?  In most cases one of two things happens in such an intimidating environment.  First, people get away from it by checking out – physically or emotionally.  Second, they get used to it and the fear loses its impact, as evidenced by phrases like “Oh, don’t pay any attention to him/her.  That’s just how he/she lets off steam.” You may be thinking “Well, if I don’t hold people accountable, how does anything happen?”  The answer is so simple that some of you will more than likely blow it off.  The answer is to make others believe they are responsible for their actions and people whom you can depend upon to get the job done.  Use your personal influence in ways that make them want to meet your expectations. How does that happen?  Here are some techniques that will help you become more effective in substituting personal influence for positional power.  Your business and family leadership will increase dramatically if you put these principles into practice: I am not the source of all wisdom and knowledge in the universe; I respect the wisdom and knowledge of others; It is better to be as tough as leather than as hard as a rock; The meaning of my communication is in the response I get from others; and, Resistance is a sign of a lack of rapport. There are several other presuppositions like those five bullet points above; and all of them are instrumental in helping you effectively create a culture of personal responsibility and dependability within your organization and/or your family.  Remember, most people respond favorably to inspiration, self-direction, education, and communication. Feel free to share your comments below on how you get the results from others that you desire.

Strategic Planning and Succession Planning: Different Goals and Teams

As I discussed in my last post, strategic planning and succession planning both are long term endeavors with significant overlap and many similarities. However, the defining and distinguishing characteristics of succession planning are reflected in the differences in these two very important leadership and management initiatives. The differences are reflected in the goals, scope, focus and the term of these two endeavors. The purpose of strategic planning is the confirmation of goals and priorities and the optimization of business performance through the effective alignment of business resources with performance objectives. Business resources can be broken down into three general categories: time, people and money. Strategic planning endeavors to optimize synergy, productivity and efficiency by confirming priorities and establishing compatible plans for the achievement of realistic performance benchmarks. Click here to read the end of this blog.

How to Focus On Outcomes and Get People In the Game

Some people are more effective than others when it comes to succession planning.  A few people are good at it because they have multiple generations of experience supporting them; others are good at it because they have the right team of trusted advisors looking after their interests.  In both cases, they have a proven model they can depend upon. As you participate in your own succession journey, with or without benefit of such experience, there are a few factors that will be important to drawing people into a developing legacy.  When applied deftly, they make the compelling difference between ambivalence and commitment.  Consider these points. Click here to read the end of this article.

Strategic Planning and Succession Planning: What’s the Difference?

I am often asked what the difference is between strategic planning and succession planning. Strategic planning and succession planning have significant similarity, both being long term endeavors with significant overlap.  The stakes are high in each endeavor. The success or failure of either will have a long-term, lasting impact upon the business. Likewise, unawareness of the importance of the initiatives or an unwillingness to address either initiative will also have an undesired, lasting impact. Therefore, this is a legitimate question meriting an extended answer to avoid confusion. To read the end of this blog, click here.

Having A Hard Time Creating Buy-In? You May Be Confusing the Business with the Legacy

Not too long ago, a client asked how he could get his family members more excited about the family business.  "What would you do?” he asked.  "Well, what are you trying to sell them: The business or the legacy?"  I asked.  He paused and then replied, "I don't know the difference."  Does that sound familiar to you?  If you're the family leader, can you distinguish between the business and the legacy?  While they may be one and the same to you, other family members may not make the same connection. To read the end of this blog, click here.

Don't Overlook the Employment Contract - How It Can Lock In Your Competitive Edge

In addition to employment contracts being beneficial for business owners, they also can play a very important succession role with key managers. Business owners commonly have concerns that key managers, critical to the continuation of the business’ success, could be recruited away by a competitor. There is also concern that the key managers could become frustrated with their perception of the succession plan and jump ship after the owner’s retirement rather than give the successors a chance to earn respect.  And the nightmare of nightmares is that with access to customer lists, processes and technology, a key manager could hook up with a competitor and inflict devastating damage on the business. These concerns about the commitment of key managers commonly impede exit strategy, successor identification and preparation, the transfer of management responsibility and the transfer of stock. Click here to read the end of this blog.

Business and Family Communication - How to Disagree, Agreeably

Disagreement is guaranteed to happen in life. How we deal with it is what we get to decide. One of my partners, Dan Schneider, explains below the four primary communication styles and how we can identify those to help us disagree agreeably.   Disagreeing agreeably with others is an art form.  For some of us, it’s intuitive and comes quite naturally.  For others, it’s a learned behavior driven by unpleasant experiences at home with family or at work with business associates.  And, then there’s that group that just never seems to learn how to disagree without proving themselves disagreeable.  They just get nasty and treat every conversation as an interrogation. Click here to read the end of this blog.

Don't Overlook the Employment Contract - How It Can Impact Your Exit Strategy, Cash Flow and Protection from the IRS

As a dedicated business succession planner, I am often bringing up the subject of employment contracts. The predictable initial response is “I hate contracts and what role could an employment contract have in my business succession planning?” This question generally comes from someone who has 80% of his/her net worth tied up directly or indirectly in their business and does not have a prayer of retiring without concerns about their financial security. They are plagued with the concerns of “Where am I going to get income?” and “How will I replace my current benefit package?” Fortunately, the employment contract can be a very valuable tool in relieving these concerns and facilitating business succession planning. Click here to read the end of this blog.

Family and Business: Have You Been a Cheater?

Recently a friend shared a book with me titled Choosing to Cheat by Andy Stanley. Choosing to Cheat is a quick read, but it is very intriguing and prompted me to do a little introspection. The author begins the book by stating that everyone cheats. Now before you wonder why a succession planner is talking to you about cheating, please let me explain. This is a book about what can happen when family and business collide. Click here to read the end of this blog.http://www.seekingsuccession.com/index.php/how-we-work/case-histories/entry/family-and-business-have-you-been-a-cheater-1