Helpful definitions for planning and discussing your business transition
You may find the following definitions useful in creating a common language among those who will be involved in transition related discussions:
Management Succession Plan – A written plan for identifying the tasks and responsibilities that a key leader needs to delegate to someone else in order to move up or out. It also identifies who will be the successor to this leader and the training and coaching process that will be used to prepare them to move into this position
Stakeholders - Anyone who has something to gain or lose either during or after a leadership change: family members, employees, vendors, advisors, service providers, bankers, insurance agents, suppliers, contractors, etc.
Succession planning – The process of identifying the successor and preparing them to assume the role being vacated by the existing key leader or manager. This can apply to both the business and the family
Transition– The process of change that is required to help the owner move to a new level of success and involves both management succession and an eventual change in ownership involving a sale, gift, or inheritance