Without Execution There is No Transition
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Learn The Secret to Transition
Understand Stakeholder Issues
Read this Business Scenario
The best planning in the world will mean failure if you don’t take action. Effectively executing the plan is the key to a smooth business transition. To complete the three important execution steps you will need to:
Step 1: Become a Passive Owner
First you must begin separating yourself, your goals, your finances, and your responsibilities from the business. To accomplish this change you need to:
- Implement a business management system to ensure your human capital is trained, engaged, and accountable.
- Develop leadership and management skills through coaching and training.
- Build a management succession plan to guide the successor in their new role.
- Learn, understand, and teach the disciplines of a learning organization.
- Create an effective governance structure for communication and accountability.
Step 2: Transition Ownership
The second step involves the financial, insurance, and legal aspects of transitioning ownership. To successfully transition ownership, you need to:
- Create a personal financial plan and explore options for shared and individual assets.
- Review your estate plan to protect family assets.
- Devise an ownership transition strategy to determine who will receive the ownership: Family members, Employees or Partners, or a 3rd Party.
- Confirm the business valuation method and review buy/sell agreements.
- Investigate bank and shareholder financing options.
- Implement insurance strategies to protect your wealth.
Step 3: Strengthen Family Unity
Family is the top priority and keeping your family unified during the stressful business transition process is vital. To strengthen family unity you need to:
- Define the family’s purpose and wealth philosophy.
- Create a learning environment to help each member achieve their goals.
- Identify family values and develop a shared vision outlining what the family wants to achieve.
- Encourage estate planning and establish good decision-making guidelines.
- Hold regular family council meetings to improve communication and create a safe place for courageous talk.
By completing these execution steps you, your family, and all the stakeholders have done the work required to achieve a successful transition process. You have integrated strong family values, effective business management, and a healthy community. Congratulations, you are ready for the next chapter in your life!