SUCCESSION PLANNING

What happens when a company's leader retires or becomes ill or passes away? Who runs the organization? Succession planning is becoming a big issue as the baby boomers age and inherit their parents' assets as well as moving towards retirement themselves. At least 40% of privately held businesses anticipate a major change in leadership within the next five years, but approximately half of them do not have a successor identified nor have a plan for succession.

This is one of the most important transitions of leadership in the life of a business. The handling of this crucial task often decides the future fate of a privately held or family-owned business.

Succession planning includes:

		Attention to the future needs of the company
		Effective evaluation of possible candidates to lead the company
		Careful planning to address the impact on the relationships especially within the management team

Chief among handling these items is understanding and managing the role that family and executive relationships play in the overall scheme of how to insure that the business keeps moving forward.