Daily Biz Solutions

Avoid These Pitfalls
9 common missteps that can kill your transition plan: Part 1 in a series

By Sandy Blaha

The tenets of healthy living are rote by now: Eat plenty of vegetables, lift weights, get regular cardio exercise, reduce stress.

Managing your firm’s life and your own financial life get a little more complex. Just a few missteps can throw the best intentions out the window. So if you are thinking about, and planning for, the next phase of your – and your business’ life – here are the key potholes to avoid.

1. I’ve (not) got a plan
You may have heard it before, and you’ll hear it again. Without a planned approach to leadership transition, it’s difficult – if not impossible – to benchmark and measure accountability. With a plan, you can start clarifying your management and leadership expectations.

During transition times, a company’s leaders need to communicate the changes taking place. They need to communicate more, and more effectively, than many have ever done before. That often means operating more formally than ever before, too – which requires a plan.

2. Scattered focus
Commonly, entrepreneurs, owners, founders, presidents, and primary rainmakers are used to multi-tasking and moving in different directions. When it’s time to change leadership, the ability to slow down, free yourself of some day-to-day operational work, and focus on the tasks at hand becomes critical.

Business owners need to focus time and energy on management and mentoring. Make sure you are available, and able, to teach and train your key people to become the leaders you need and expect.  Alternatively, bring in an expert who can assist you.

3. There’s no one else
“No one can do it as well as I do.” You’re right. No one has more experience or more expertise at what you do than you. That’s exactly why you’re now needed to serve as manager, trainer, and mentor (see # 2), giving the next generation of leaders the chance to practice.

Patience truly becomes a virtue for owners in transition. No one will complete a task exactly as you do, and chances are good no one else will do it as well as you the first few times. Leave room for mistakes. While most people won’t get it perfect the first time, you may be pleasantly surprised at their growth with your help.

4. You won’t get out of your own way
No one can know what it’s like to walk in your shoes if you don’t move out of the way! When you step out of your shoes and let others step into them, you can empathize with the difference between founding a company and following in someone else’s footsteps.

5. Inability to identify true leadership
Not all followers are leaders. As you enter the transition process, look carefully at your entire field of high-potential people, including some of the 30-year-olds. Remember that it is unusual for only one person to replace one founder. Become an expert at recognizing good leaders, and then give the next generation the opportunity to try different elements of leadership to discover what best suits them.

6. Maintain the old network
With the average age of a business owner standing at 59, many of your business contacts will be retiring at the same time you do. While it is important to introduce and pass on your contacts, encourage your up-and-coming people to develop their own as well. Encourage and your key talent to enroll in city or chamber of commerce leadership programs, take appropriate classes, and participate in other networking venues.

7. You get benched
A common pitfall in transition planning occurs when owners exclude benchmarking in leadership transition strategy. Architectural, engineering, and project management job competencies, along with principal peer evaluations, should be in line for benchmarking so that you can understand, see, and measure your firm’s progress during this critical time.

8. Hesitate
The “hesitation rate” refers to the shift in power, authority and responsibility. Don’t let it bite you!  The next generation team needs to choose each other. Transition business relationships so the next generation can lead business development. Don’t give up clients you’ve had for 20 years, but do hand off new business relationships to key people.

9. Out of alignment
Just as your car needs proper alignment to run smoothly and efficiently, a leadership team must have alignment. Without a clearly articulated shared vision for the future, the firm’s message sent will be diffused and confusing. Result? Lack of trust in the leadership team, divisions, wasted time, and the inability to attract and retain the best personnel.

Be sure your new leadership team has the ability to resolve conflict, is armed with an integrated shared vision, and believes in each other.

There’s no doubt that the transition road can be a bumpy one. But by taking a few proactive steps, you’ll be able to navigate it more smoothly.
 
There’s no doubt that the transition road can be a bumpy one – but companies that develop a pathway for transition succeed 98 percent of the time.  By taking a few proactive steps, you’ll navigate the road more smoothly.

About the Author
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.