Looking at succession planning from both sides of the table

By Emma Peterson. 

John Kenney dives into considerations for professionals stepping into new roles of leadership and for those stepping back. 

Succession planning is a natural step for every business. In this special Affinity Webinar with John Kenney of Cotney Consulting Group, Heidi J. Ellsworth and Megan Ellsworth sit down for a discussion about taking a step back from the business you’ve built over your career. Their discussion not only covered what it looks to hand off a business, but also what it looks like to take the step forward into the next era of the business.  

Taking a step back 

Letting go of a business you have poured your heart and soul into for years is no small thing. But succession planning is the key to making that goodbye impactful and setting up your legacy for success. As John puts it, “Even if you don’t want to think about retiring, it’s going to happen someday to all of us. Another way of looking at it is, no one wants to get sick, no one wants to miss time, but things happen. That's life. So the best thing you can do in your business is be prepared through having systems, processes and people with a plan to keep your business going even if you’re not there.” That plan for what happens if you’re not there? Also known as a succession plan.  

The best way to start succession planning? Start. John explained, “The number one problem I see is that people wait too long to plan. Think of succession planning as a goal, and what is a goal if you don’t do anything to enact it? It’s a dream. You have to start today to make it a reality.”  

So what does starting look like? For one, surrounding yourself with the right people. John elaborated, “If you hire strictly upon talent or technical skills, you more than likely will fail. Why? They might not align with your business and cultural goals. I always say, it’s better to hire someone with the right attitude and then teach them the technical skills that they need to succeed.” By making sure the team you are surrounded by is aligned with your vision for the company, you are ensuring that when you need to take a step back, they will be ready to take a step forward to preserve your legacy.  

The other big thing to get organized is your paperwork, such as tax documents. John recommends hiring a professional for this. He shared, “I'm not an expert on this, so this is for educational purposes only. But you have to have a lawyer that specializes in this. The best course of action is to go in prepared and say, ‘This is what I'm thinking, what are your thoughts on it?’” 

Stepping forward 

On the other side of the table is being the successor of the company. And similarly to planning to step back, those who are looking to step into a position, whether it’s through inheritance, acquisition or something else, need to be thinking proactively. John explained, “The biggest thing to think about are the three basics. Look at systems, processes and people and make sure you align with them. So, what is a system? A system is usually software. Behind that is a process, which is how it is used in the company specifically. And then people. People are the ones who make it happen.”  

Making sure you understand these three elements sets you up for success as these are the core of how a business is run and help you to lead the business effectively. How do you go about understanding these? John shared some thoughts, “If I was going in and analyzing a company, I would talk to the people. I would find out how they do their job. And if I’m interviewing four people from the same department and they're all doing it the same, then I know the systems and processes work. If I'm getting four different answers, then I know there's probably not really good systems or processes, or either one or both, then I have to look into that.” 

Overall, by proactively understanding the existing systems, processes and softwares in place, you can not only have a smooth transition but set yourself and the business you are taking over up for long term success and preserve the legacy of whoever you are taking over for.  

This affinity webinar and others like it are available to R-Club members! If you are interested in learning more, check out our R-Club sign up page.