Complete Story
07/12/2018
Hard Questions. Big Decisions.
Carol Butler, President of the Goering Center
Succession planning isn’t easy. The Goering Center can help.
When it comes to succession planning, family and private business owners face unique and considerable challenges. Contemplating a transition brings up hard questions, and big decisions, that affect everyone involved. How and to whom do I transfer ownership and leadership? When and at what price? How can I let go? How much income will I need? What will I do, who will I be, and what will my life be like after the transition?
Potential successors face related issues. They often ask themselves: Am I ready? Can I do it on my own? Would I be happier doing something else? What is the business worth? How will I finance the purchase? Will I be accepted? Who can help me figure out all of this?
A Proven Path to Success
The Goering Center has developed an eight-step program to prepare both generations for a successful transition of control and ownership – the Next Generation Institute (NGI). Founders/owners and their “next generation” successors identify succession planning issues and address them together.
Since its start, NGI has helped over 400 business owners and leaders understand succession planning and the related issues.
NGI teaches family and private businesses how to transition roles and ownership by creating a mutual vision for the company while engaging essential advisors and peers. Side-by-side, with the support of expert facilitators, both generations learn valuable lessons on how to jointly begin the path to transition.
8 Steps to a Seamless Transition of Value and Control
- Foundations for Succession
- Forming the Team
- Goals, Expectations & Contingency Planning
- Strategic Planning
- Valuation & Financing Perspectives
- Optimizing Legal & Tax Structure
- Stakeholder Communications
- Process Status & Next Steps
Apprehensive? You’re Not Alone
Studies show that many business owners fail to plan their succession. When leaders serve as the head for both business and family, they may believe that their succession wishes will be carried out posthumously – simply assuming their family will know what they want to happen after their death and execute their plans accordingly.
What leaders often do not anticipate is the strife that occurs when a succession plan is not clearly in place. Commonly, the family or management team does not agree with the wishes of the leader that has passed away, resulting in dissension and chaos.
Both family and private businesses face a multitude of problems in succession planning which can be incredibly difficult to navigate. These issues are most easily, and most effectively, dealt with when there is a true partnership between generations in creating and implementing plans using proven methods.
For a successful transition, it is also crucial for each party to place the interests of the business first, by operating in a collaborative spirit and recognizing that others are involved in the process.
Factors for Success
In order to implement a successful ownership and leadership succession, leaders must address four key factors:
- Know their strengths, weaknesses, personal characteristics and development needs.
- Recognize the issues and problems that affect the successful ownership transition.
- Understand proven, time-tested processes to deal with these issues and problems.
- Have knowledgeable, expert peers, mentors or advisors that understand the specific situation so that they may provide grounding advice and support throughout the process.
Look for the full conference brochure in our upcoming Communicator.
2018 Leadership Conference & Golf Outing
Leadership Conference
- Sunday-Monday, September 16-17
- Quest Business Center, Columbus
Casino Night, sponsored by Printers 401K
- Sunday, September 16th, 6:15 pm
Millcraft Grand Ceremony
- Monday, September 17th, 6:00 pm
Sterling Distribution Golf Tournament
- Tuesday, September 18th, 8:00 am
- NorthStar Golf Club
