The Price of Procrastination - The Tragic Story of One Client
Imagine a thriving family business, rich in history and success, suddenly faced with the unexpected loss of its leader. The ripple effect can be devastating—employees feel unsure of their future, clients question stability–leaving the entire legacy at risk. This is why succession planning is not just a business strategy but a fundamental responsibility for any business owner.
I often think of John, a family business owner with a succession plan in mind. He intended to develop a family member who wasn't ready to take over but would be… someday. John thought he had plenty of time. He was healthy and in his 50s, and everything was clicking on all cylinders. When John began experiencing abdominal pain that led to a visit to the ER, with hopes that the scans and tests would show what was going on. It wasn’t long after that he received the devastating diagnosis of Stage 3 cancer.
Being a fighter, John made his health a priority and worked with medical teams in Boston to combat his illness. Suddenly, plans for “someday” became more urgent. As John's cancer continued to spread, he scrambled to develop a plan. Unfortunately, his scenario was reactive and not as well thought out as it could have been. It was at that point when John reached out to me for assistance in planning for the future of his business.
In the 90 days before he passed away, we worked together on a plan to cover his role and secure the business's future. We looked at who was in which role; who might move into new positions; who would fill his impossibly big shoes.
Despite our efforts, the organization faced significant challenges after John's passing. The team was fractured. Key employees left. Clients felt the palpable shift and began migrating their business elsewhere. Could this have been prevented? Sure–maybe if there was “more time” to put the process together. But we never really know how much more time there is, do we?
Which is why I want to highlight the critical importance of proactive succession planning.
Without a succession plan, a business faces numerous risks, starting with:
Disruption in operations - Sudden leadership changes can halt operations and lower productivity.
Employees uncertainty with a lack of clear leadership. This muddy transition can lead to high employee turnover.
Clients begin to lose trust as they lose confidence in the stability of the business.
Leading to financial instability. Without a plan, financial mismanagement and conflicts can arise. Without the right plan and people in place, the downward cycle can continue.
We have to understand that succession planning is more than just a logistical process; it's a journey that involves significant emotional and mindset shifts. For many business owners, the idea of stepping down can be daunting. It involves letting go of control and trusting others to continue their legacy. This can stir feelings of uncertainty, fear, and even grief. It's essential to address these emotional aspects and cultivate a mindset of openness and resilience.
It's not just about picking a successor. (If only it were that simple!) Rather, it's about preparing the entire organization for a smooth transition. In order to do this properly, we have to assess the readiness of the business, ensure cultural alignment, foster leadership development, and address the emotional readiness of the outgoing leader.
As a family business advisor, I help leaders like John navigate the complexities of succession planning and ideally sooner than later. Life is not fully in our control, that's why it is up to you and us to be proactive and manage what is in our control, and starting early is the best way to ensure your business and family are ready if / when life throws a curve ball your way. It is a big endeavor, but you don't have to do it alone. We have a proven process that works holistically, from both the head and the heart. To learn more about our process or get perspective on your business succession position, click here to set up a one-hour free, no obligation insights discussion.