How Business Succession Planning Can Help with Smooth Transitions

June 15, 2016

It’s imperative to think carefully about replacing any high-level employee in your business, but this is especially important as it relates to a CEO. There are major risks associated with not having a long-term strategic plan for replacing someone at the head of the company. Succession planning should be discussed early although many companies fail to accomplish this goal until they have learned the value of doing so by speaking with a business succession attorney or until the company has gone through a rough transition period.

Take a lesson from the spice company, McCormick. They use many of the same tools that other companies do, including job rotations, a long-term strategic view and regular assessments for all senior executives. This is largely due to the fact that the sudden death of a prior CEO and health issues that forced the current CEO’s departure from the company.

Planning for succession is as much about deciding the future direction of the company as it is figuring out what plans and people you have in place to direct that transition with minimal negative impact on the company. With training and advance preparation, the next generation of leadership in the company should rise to the occasion.business idea

According to a recent study conducted by the Wall Street Journal, 55% of companies felt that they were only somewhat or not at all prepared for the departure of a CEO as a result of an emergency. All too often, boards of directors don’t consider replacing a CEO until a year or two before the individual currently in the role is planning to leave, but at that point in time it’s too late to develop someone else to take over the role. It is imperative to plan ahead for a smooth transition in order to allow the best possible chance of success.

Ready to talk succession planning? Contact our office at info@lawesq.net to learn more about your options and suggested next steps.

                                                                                                                                                                                           


Practice Areas:



Schedule your free Exploratory phone call

Click here to see how we
can be of assistance.

Payment Portal
for Tax and Accounting invoice

This link offers a secure, quick way to complete your payment with Omni360 Advisors LLC.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Recent Posts

Why Working with a Financial Advisor Still Matters in the Age of AI

Artificial intelligence is transforming investing—but human judgment, fiduciary responsibility, and personalized planning remain central to long-term financial strategy. Artificial intelligence is reshaping nearly every industry—including ...

<p>The post Why Working with a Financial Advisor Still Matters in the Age of AI first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

What Is an ID.me Account—and Why Business Owners and Families Should Consider Having One

Learn what an ID.me account is, how it works, why it can simplify access to government services, and how to set one up securely. An ...

<p>The post What Is an ID.me Account—and Why Business Owners and Families Should Consider Having One first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

Protecting Your Loved Ones: Valentine’s Day Lessons in Financial, Estate, and Tax Planning

This Valentine’s Day, go beyond flowers and gifts. Learn how financial planning, estate planning, and tax strategies help protect the people you love most. Valentine’s ...

<p>The post Protecting Your Loved Ones: Valentine’s Day Lessons in Financial, Estate, and Tax Planning first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>