Because they’re not ready.
Why are they not ready?
Because the Business Owner is capable of leaving the business ONLY if they’ve done their personal exit pre-work first.
By that I mean identify and work towards a Real “replacement” in their life of their business; a new identity if you like. Until that occurs, they’ve got nowhere else to channel their energy or emotion….
The secret ingredient is trust, good communication and openness to explore alternatives AND for the Business Owner to start their personal process much earlier.
Why Retiring Business Owners Balk at the Idea of Selling Their Company
I know I am!
Especially when there appears to be no substance behind the claims.
No doubt, rolled up in amongst the stuff are nuggets of truth, and even a little real life experience. But across the board, most are guilty of well-intentioned theory at best. As for execution based on actual practice, seems to be sadly lacking.
Succession Planning is a case in point. By virtue of the use of the word “planning”, it is theory based – it has to be. What you need to be really mindful of is:
o Is it actually a plan that can be executed?
o Is it a plan you really want to execute, if push came to shove?
Planning has it’s role, but it is certainly not the be all and end all.
The proof in the pudding will always be when the DOing takes place.
And when you need the DOing to take place, do yourself a favour and instead find 7 Facts in this, and 5 Facts in that….
Two in five employers in Australia fail to use succession planning strategies, an industry survey has revealed, reports HRLeader.
The 2011 XpertHR survey looked into succession planning practices throughout Australia, with almost half of respondents stating that they had not undertaken such strategies to help aid internal recruitment processes.
While 23 per cent of organisations use a formal process to implement succession planning, a further third of respondents said that they used an ‘informal’ approach, with the remaining participants completely refraining from implementing processes.
Questioning almost 150 employers, the survey found that the main reasons behind the failure to use succession planning were:
- it was not a business priority;
- their organisation lacked the resources or HR expertise needed to run the process;
- staff turnover was low and
- the size or nature of the workforce made it irrelevant.
That wouldn’t be you by any chance now would it?
As reported in MyBusiness.com.au…
In my experience of working with over 140 businesses around the world over many years, I have been amazed at how often we are called in because the business owner has problems with staff, customers, suppliers or the market.
Invariably, our first meeting with an owner is dominated by them telling us all their problems and how everyone is against them. This ‘victim mentality’ typically expresses itself through blame, denial and excuses. After hearing what they have to say, we will usually confront them with a simple, bold statement: “Your problems have little to do with anyone else; they are ultimately a reflection of your own behaviour.”
The essence of this statement is an important insight — a business is a reflection of its owner. As the owner gets better, so does the business… keep reading
which is exacrly why mentoring programs like the entrepreneurial motherLode program are so important…
Succession planning is considered necessary for every organisation from the family farm through to Fortune 500 companies.
Teresa Russell talks to two organisations that operate at different ends of the spectrum. Both are doing what is within their powers (and budget) to identify, develop and retain future leaders – with a special emphasis on women.
What else can you be doing?
What else can your business be doing?