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Cape Town - In the life of a business, there comes a time when person running it wishes to hand over the reins.
But it can be difficult to designate a successor to take over the business if they haven’t been trained with the relevant skills they need.
If the person at the top is the person holding all the knowledge, if they then want to leave the company - whether by leaving someone else in charge or by selling it – it’s not always easily done if they are the business.
“You may find yourself in a position where you want to move on, but the business is simply not equipped to run efficiently without you behind it,” says Sirdar South Africa’s managing director and governance manager Tim Holmes.
“In this scenario, the company cannot progress until the founder changes the way the business operates. Many founders reach a point, sometimes coming as quite a shock, where they realise that something has to change for the business to be able to continue.”
This is where succession planning comes into play - a system where ongoing training occurs on all levels in order to equip staff in a company to move into new roles they are best suited to as and when they become available.
“This extends all the way up to the top of the business – to board level - if the time comes and the relevant skills and abilities are in place,” Holmes adds.
He explains that there are two “games” when it comes to business.
“Game One is the game of being a 'craft'. This is based on hundreds of years of history, where you have the scenario of an individual craftsman and his apprentices – but it’s all about that master craftsman,” says Holmes.
“Game Two relates to business enterprise, which has little to do with the individual who founded the business, and more to do with the multi-skilled team as a whole.”
In his view, too many products and services are still reliant on the people at the top. If the founder behind that product or service were to be removed from the scenario, the whole set-up would fall to pieces. This is when it’s time for education and training in order to move the business forward.
Ideally, this problem should be identified and dealt with at the start or in the early days of the lie of a business.
“When starting out, the question you need to ask is ‘what game am I playing’,” Holmes concludes. “At the point you decide ‘we are going to be an enterprise’, that’s where Sirdar comes in to make the transition successful and lasting.”
Holmes’ top tips for successful succession:
- A business that isn’t reliant on the founder(s) will sell far more quickly, and for more money;
- Don’t keep everything in your head. Write everything down, or task someone to keep instructions clearly, regularly and efficiently noted;
- Ensure your team is regularly trained in all aspects of the business. Don’t hold on to the knowledge, if you can pass it on to others within your organisation who are willing to learn;
- Ensure your team includes people with a variety of skills and talents. Don’t limit yourself, or your business;
- Admit when you need help. If something is missing from your business, don’t be afraid to outsource for assistance or training.
