In our last post, we discussed succession planning and finding the right successor. There’s another equally important side to the process, though, and it’s creating enterprise value. While identifying and training the right successor is important, creating a well-positioned company in a competitive market lives beyond you and in the enterprise as a whole. You want to create a legacy of enterprise value by implementing smart business processes and practices with scalable operating models.
In our succession planning services, we emphasize enterprise value and determine an approach that positions your company for long-term success. Included below are a few points we stress to our clients.
Company Value vs. Personal Value
All of the company’s value should not be wrapped up in your value. It’s easy to correlate the company’s success with your own success as its leader, but doing so will inhibit your ability to plan for success or to make the company attractive to a potential buyer.
The Next Generation of Advisers
Human capital is critical to your company’s future success. Not only do you want to hire and train the next generation of advisers, but you want to make sure they’re as invested in the company’s success as you are. They’ll carry on the value you’ve created.
Service Model Longevity
As your company continues forward, your clientele will evolve, so you want to develop a brand that is both sustainable and appealing to the multiple generations of clients. If you’ve hired and developed the next generation of leaders, they’ll ensure the company transitions with the generational and economic shifts.
Whether it’s finding the right successor or creating enterprise value, objectivity is key in succession planning. It can be difficult to maintain that objective perspective, though, and a consultant can provide that outside eye while keeping the best interests of you and the company at heart.