By Sandy Blaha

When it comes to the planning for the transition of a business, good things do not come to those who wait.  Those who do often find themselves feeling the pressure of a ticking clock, caught between needing to move quickly and immobilization.

If you are thinking about, and planning for, the next phase of your – and your business’ life – taking the following steps will help you move quickly toward your goal, and assure smoother sailing in the process.

1. Know your ABCs
Every owner I have ever talked with says that the company started to move forward once s/he learned to let go of the “C” players and develop an effective performance management and coaching process. You may find it difficult to do at first – and it will mean development of your conflict resolution skills – but it will pay off. 

2. Pay attention to the alpha dog
You also may want to say goodbye to “A” players, where “A” stands for “alpha.” Alpha employees interact well with clients, are high producers, and work hard, but are abusive within the firm, can be bullies, and often serve as stumbling blocks to your succession success.

Identify these individuals, give them a chance to change, and then help them to separate with ease if it doesn’t work out. The people you will want to become buyers of your firm will not be interested if it means inheriting alphas.

3. Understand that the proof is in the…projects
Grant ownership only when a person has proved his or her leadership abilities. The proof is in strategic learning projects for your up-and-coming next-generation individuals. These projects will give them the opportunities to prove that they can move from project managers to company leaders.

4. Become a decision-maker
Your next generation of leaders will need a methodology for making decisions, practice in making difficult decisions together, and a model to follow. It is important to set a good example for decision-making, so if you are not a decisive person, it is a good idea to obtain coaching in that area.  If you don’t?  Expect stagnation, delays, and discouraged personnel.

5. Be a talent scout
You may be missing the right talent mix in your next generation team. How is the world changing? What kind of leaders will your firm need? The next-generation leadership team may need different skills, sensitivities, and attributes than you to succeed in the future. Focusing on the vision of your company, think carefully about what you need now in leadership as well as three-five years from now.  Professional assessment tools can go a long way to help identify the best talent.

6. Consider a sale
If you aren’t ready to let go and share authority, or if you’ve tried several times and failed (perhaps losing key employees in the process), you may be better off being honest with yourself about a legacy. Think about selling your firm to a third party.
7. Take your time
Once identified, the future president of your company must be a leader. Someone people will follow. This person needs time to demonstrate his or her abilities, judgments, leadership style, and interactions with people. Be humble enough and vulnerable enough to listen and change, and recognize that you will need to hone your change skills during this process.

8. Avoid parity of power
While the next-generation team must make decisions and learn together, avoid trying to be equal to all. Each person should not necessarily have the same amount of stock or the power as the next. The executive team will eventually pare itself down to the two or three people everyone trusts. Ideally, a next-generation president should be appointed by consensus, based on his or her track record of leadership and ability to gain peer confidence.

9. Identify and correct fatal flaws
Check your behavior and leadership ability for these three fatal flaws in transition planning:
• The inability to set direction.
• The inability to align critical constituencies.
• The inability to adapt to changing circumstances.

If you notice any of these in yourself, it is important to work through them now. The ability to grow beyond your flaws is an important part of leadership – one that needs to be part of your work as well as your next-generation team’s.  Be a role model and make sure you’re not committing a fatal flaw.
The steps discussed here may appear challenging, but paying heed to them now can set the tone for a smooth and effective transition in leadership. Managing a company and handling development of new leaders is a challenging task with risks and rewards to match. Don’t be afraid to seek the proper tools and advisors to ease the process and ensure a smooth sailing.
Sandy Blaha is president of Denver-based Sandy Blaha Performance Consulting, providing comprehensive leadership development and transition planning services, including consulting, training, and executive coaching. Serving the architecture, engineering and construction (AEC) industry since 1994, she has worked extensively with business owners to plan for retirement, develop exit strategies, and insure their companies’ legacies.

Sandy is the author of two major leadership development works: Passing the Torch: A Toolkit for Leadership Development and Transition, and Stepping Stones: 5 Essential Steps for Transition Success.