Succession Planning Done Right

Adam Forrester, CEO - Marsh Alliance 

For many business owners, there comes a point where handing over the reins becomes a vital consideration. Whether your goal is to retire, embark on new ventures, return to the work you truly enjoy, or simply step back from being the central figure in the business, the process of succession planning can be both daunting and complex. You may find yourself asking how best to approach this transition—or, importantly, how to avoid the common pitfalls.

My Experience with Succession

Recently, I had the opportunity to speak at the Alumni about my personal journey taking over a 70-year-old family business. Reflecting on the past decade, I have identified several critical areas that can make or break the success of a succession plan. Navigating these challenges successfully was key to our positive outcome, and I am always open to discussing my experiences further, including some of the cautionary tales I have encountered along the way.

Five Pitfalls in Succession Planning

• .Lack of Understanding of Key Metrics – If you don’t have clear metrics of the business performing and things going in the right direction, how can a new person know if things are working well.
• .Difficulty Letting Go - A common mistake is struggling to step back, continuing to run the business instead of supporting and managing your new General Manager or CEO.
• .Not Handing Over Properly - Failing to delegate authority to your successor, and continuing to communicate directly with your team or going behind the new leader’s back.
• .Poor Recruitment Choices - This means working with a recruiter who understands your company culture and being willing to offer a competitive salary. While you may have run the business with minimal compensation yourself, high-quality employees expect to be rewarded appropriately for their skills.
• .Retaining Too Much Technical Knowledge - If too much of the business’s technical expertise remains with you, or if you haven’t successfully removed yourself from the day-to-day value chain, the organisation can become overly dependent on your presence.

What Made Our Succession Plan Work

I consider myself fortunate that both careful planning and the personalities involved contributed to a successful and thriving succession plan. Trust was built gradually over several years before control was handed over, allowing both the team and the owner to adjust at a pace that felt manageable.