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Succession Plan
The absence of a succession plan in a family business environment is challenging. Uncertainty about the preparation, protection, and continuity of the family business, and the roles that the successors will take on to maintain the company’s legacy, is a constant concern. Unresolved family tensions further complicate this process, impacting both the business and family relationships. A lack of structure and experience in succession planning has led to previous failed attempts, creating uncertainty regarding the success of the succession plan. These challenges highlight the importance of approaching the succession plan in a structured manner and with specialized and professional advice.
At London Consulting Group we ensure
a successful leadership transition,
without compromising the efficiency
and effectiveness of your operation
We ensure the continued growth of your organization through a management model that grants autonomy to the new leadership. We work closely with the management and family in order to ensure effective communication and build trust in the new administration. Our approach integrates accountability and autonomy for the new executive to ensure the well-being and continued growth of your organization.
Solutions
How do we achieve the correct transition of power
We offer comprehensive assistance to family businesses so that they can develop successful succession plans. We work closely with the company’s management and the family to identify suitable successors, and we develop a strategic communication plan and a solid management model to achieve a smooth transition and ensure the successful continuity of the business.
Methodology
Our process for a successful succession plan
Deep-dive Analysis
We carry out a comprehensive analysis of your business, identifying areas of improvement for the succession plan. We assess whether the current environment and culture are conducive to implementing the necessary changes and maximizing the value of your business.
How we do it
• Defining obstacles or facilitators in the predecessor's retirement process: Identifying elements that may hinder or speed up the transition of the outgoing leader.
• Identifying factors that ensure the company’s financial well-being: Recognizing the key elements that will guarantee the company’s financial stability during and after the succession.
• Identifying the new leader's challenges: Identifying the specific challenges that the new leader will face when they assume the position.
• Defining the successor’s necessary qualities: Identifying the qualities and skills that the successor must have to successfully face the challenges.
• Evaluating the aspiring successors: Evaluating and analyzing potential candidates to determine who is best suited to assume the leadership role.
• Defining the type of leadership desired by the next generation: Establishing the leadership characteristics and qualities that members of the next generation expect and value in their new leader.
Project
Preparing the company, the next generation, and the current leader is a crucial part of maintaining stability and harmony in the business and family. This holistic approach guarantees a smooth and successful transition, ensuring the family business’ long-term continuity and sustainable success.
Preparing the company
• Defining the person responsible for business leadership: Establishing who is the ultimate authority when making key decisions for the company.
• Establishing clear agreements regarding the successor selection process: Defining transparent rules and criteria for identifying and selecting the successor, ensuring a fair and objective process.
• Succession timeline planning: Creating a detailed plan that establishes the schedule and key stages of the succession process.
• Defining the Successor’s role and responsibilities: Determining the designated successor’s responsibilities, tasks, and expectations to ensure an effective transition and a clear understanding of what is expected of them in their new role.
Preparing the next generation
• Establishing commitments from the next generation: Defining clear commitments, responsibilities, and values that the next generation must adopt to contribute to the company’s continued success.
• Next-generation’s pre-succession work plan: Developing a detailed plan that includes the training and skills required, and the necessary experience to prepare the next generation to assume the leadership roles.
• Establishing agreements to ensure optimal functioning of shared leadership: Defining clear agreements and structures to ensure that the shared leadership between the current leadership and the next generation is effective and harmonious, avoiding conflicts and maximizing collaboration.
Retiring
• Defining the retirement plan: Establishing a detailed plan that includes the steps and resources needed for the current leader to retire. This includes financial, operational, and personal aspects.
• Verifying the succession plan with the family, business, and owners: Comprehensive review of the succession plan to ensure that it is aligned to both the family and business objectives, taking into account how the business will be managed and the company’s ownership.
• Planning the retirement schedule: Develop a detailed timeline that establishes the key dates and milestones that must be followed to effectively implement the retirement plan, ensuring a smooth and well-coordinated transition.
Benefits
Preparing the next generation of leaders
Ensure the continuity of your company with a successful succession plan that provides peace of mind to the family. Establish transparency in your operations and define the roles and responsibilities for the shareholders, family members, and executives. Clarify expectations and help reduce business risks.
What makes us different
• We act as a catalyst in order to implement an effective succession plan.
• We work together with the management and the family to create a communication plan that ensures the support of the entire organization.
• We help establish trust between the family and the new administration.
• We establish a governance model that balances accountability and autonomy for the new executive leader.
• We guarantee the organization’s well-being and continuous growth.
TRENDS
Preventing corporate instability
In the United States alone, 87% of businesses are family-owned, and 35% of Fortune 500 companies are family-owned, according to Family Enterprise USA. Most of these companies recognize the importance of having a succession plan. According to Tom C.W. Lin, professor of business law at Temple University and author of "The Capitalist and the Activist: Corporate Social Activism and the New Business of Change," this is due to the need to avoid corporate instability, which can have a negative impact on stock value and business operations. Open and regular CEO succession planning is a critical decision that should be carefully reviewed at board meetings.
Forbes