Introduction 1: Defining Succession™ Success

Succession is dependent upon success. Therefore, for succession to be an option, there must be a good foundation for business success to fulfill the dream of succession. However, a complication to identifying or achieving success is that we all define success differently. And adding to the complexity, there are six fundamental approaches to measuring business value. "Defining Succession Success" discusses varying definitions of success, how they impact an owner's attitudes toward family, employees, and the community, and how they influence business planning and value.

Introduction 2: How Succession Planning Builds Value

Succession is dependent upon success. Therefore, for succession to be an option, there must be a good foundation for business success to fulfill the dream of succession. However, a complication to identifying or achieving success is that we all define success differently. And adding to the complexity, there are six fundamental approaches to measuring business value. "Defining Succession Success™ discusses varying definitions of success, how they impact an owner's attitudes toward family, employees, and the community, and how they influence business planning and value.

Module 1: Owner Motivation and Perspective

The study of succession planning starts with Owner Motivation and Perspective as it influences all business operations and planning areas. The owner's views determine the succession planning direction, options, and opportunities. More succinctly expressed, Owner Motivation and Perspective represent both the alpha and the omega, the beginning and the end of business succession planning.

Module 2: Personal Financial Planning

A fundamental succession planning consideration involves progressively utilizing the fruits of business success to achieve personal financial independence from the business. The accumulation of financial resources enables a business owner to become free of credit guarantees, initiate an exit strategy, and empower succession by transferring leadership and control of the business to partners, family members, or key manager successors.

Module 3: Business Structuring

Business structuring has a direct impact upon tax on profits, gifts, sales and, ultimately, cash flow to shareholders. These issues in turn impact financial security of owners, strategic planning resources, ownership agreements, and estate planning.

Module 4: Business Performance

Succession planning demands attention to business performance and therefore increases business value. Enhanced business performance benefits family members, employees, managers, and vendors.

Module 5: Strategic Planning

A foundational long-term initiative, the confirmation of a comprehensive succession strategy is a fundamental component of strategic planning. Strategic planning confirms operational strengths and weaknesses and evaluates resources relative to the achievement of priorities. A predictable priority of a business owner is the continuation of success, business succession.

Module 6: Leadership & Management Continuity

The identification, motivation and retention of highly qualified supporting managers and development of bench strength are essential to maintaining the viability of succession plans. Therefore, the development and constant regeneration of a management culture that can sustain and enhance historical success is imperative to succession.

Module 7: Management Synergy & Teamwork

Business succession is a reasonable business goal that requires collaborative interaction (teamwork) to effectively address the diverse challenges of the interdependent factors of the Succession Matrix. The call for team synergy includes ownership, supporting family members, partners, aspiring successors, key managers, employees, vendors, suppliers, and advisors. However, teamwork is not a natural behavior among competitive, ambitious, and aggressive parties that aspire to be recognized for their achievements.

Module 8: Successor Preparation

Moving the business to and through the next generation requires available, capable, competent and committed successors who will provide leadership through the transition.

Module 9: Family Dynamics

Family relationships can be an inherent advantage or disadvantage to succession planning. Effective interaction among the family members of current and/or prospective business owners is critical to achieving the unity and harmony needed to address complex business succession issues.

Module 10: Family Governance

“Families” come in all forms, shapes and sizes including in-laws, cousins, children, step children, business partners and employees.  Establishing the forums and processes for optimal family communication regarding business and estate issues provides the foundation for a unified succession vision and builds a strong business that can be sustained through multiple generations.