The Art of Succession Planning: Delegating for a Future Beyond
Your business is thriving, and your processes are in a flow. You—and your team—know the ins and outs of what makes the business tick. But who will do the work you do when you’re gone?
Succession planning is one of the most critical components of exit planning.
This article gives you a high-level overview of what succession planning is, outlines the dangers of neglecting it, and gives practical next steps to set your business up for the future.
What Exactly is Succession Planning?
The term “succession planning” may sound elusive or vague, but the process can be summarized into two key activities: delegating responsibilities to others (building a strong team that can run your business whether you are there or not) and training someone to lead the company in your place.
Many business owners find themselves unable to delegate because they’re trapped in a cycle of immediacy. The most present needs seem the most pressing. But planning for the future now is one of the wisest things you can do for your business!
The Delegation Dilemma
The first step is acknowledging the necessity of delegation. Sound simple? Think again! While it might be straight forward for you to see the necessity of delegation, the real challenge is having a documented process.
Without documented procedures, it becomes difficult to hand over responsibilities as others cannot replicate your steps for similar results. The dilemma is compounded by your overwhelming workload, creating a self-perpetuating cycle.
Breaking the Cycle
To break free from this cycle, you must change your perspective.
When you insist on handling everything personally, growth is naturally impeded. Because of this, empowering others to contribute is essential. Growth is only achievable by stepping aside and allowing others to take on responsibilities.
Self-Reflection Questions
To initiate the shift in perspective, ask yourself these questions:
- What are my desired roles in the business?
- What tasks am I best at?
- What responsibilities would I delegate if given the opportunity?
- How do I envision my current and future lifestyle?
- What are my business and personal goals for the coming year or five years?
Taking a Step Back
Notice what rises to the surface as you work through these questions. Are there particular times where you delegated a project and it was successful? Identifying your hesitancy behind delegation can free you up to plan for a better path forward.
This type of strategic thinking allows you to step back from daily minutiae to consider the bigger picture in both business and life.
You can take a time audit to understand how time is spent in your business. A week-long audit, broken down into 15-minute increments, will help you categorize tasks and quantify time dedicated to each category.
An audit helps you allocate time needed for…
- Administrative tasks
- Financial tasks
- Operational involvement
- Legal responsibilities
- Sales and business development efforts
- Personal or leisure activities
The Delegation Process
Once armed with a comprehensive understanding of your time allocation, you can initiate the delegation process.
First, identify tasks that only the owner can perform and highlight those. Try to take your personal skillsets and investment out of this, thinking only of the role of “owner.”
Second, recognize areas where you’ve contributed to this role with your unique skills. What traits would you want to see replicated in your next leader? The goal is to systematically hand off responsibilities to pave the way for a successful exit from the business.
Finally, take time to identify the areas of your business that can be handled by more junior or administrative staff…and let go of them! Maintaining clear role distinctions will allow you to focus on the big-picture strategy of leading your business.
In Summary…
Succession planning requires a proactive approach to delegation and training. By empowering others and strategically delegating responsibilities, you can ensure a smooth transition, foster growth, and secure a thriving future for your company.
At Capital Concepts USA, we have financial, marketing and sales, and operations consultants who can work with you to craft a plan and set goals that will make a difference in your business. Contact us today for a free 15-minute call with our founder, Lorne Greenfield.
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