from the trees. Financials As part of your succession planning an important element for all parties will be the financial considerations and, where necessary the reallocation of shares or options for people to ‘buy-in’. With a variety of exit options from a management buy-out to an EOT (Employee Ownership Trust), choosing the right one for you as a departing founder or CEO, and the ongoing health of the business is vital. Once the leaver, their successor and leadership team have all defined their individual and collective objectives, it is best to consult with a specialist advisor (legal and/or financial) to ensure everyone understands the options available and a collective decision can be reached. Internal communication and getting buy-in Succession and legacy planning goes far beyond just the person who’s leaving and the senior team that will take over; you must also consider, plan and prepare for how your employees will react. We can’t emphasise enough the importance of timely and clear internal communications about the leadership changes taking place to mitigate any concerns or uncertainty among employees. This is especially important if the person leaving is the original founder or their name is above the door. The impact of their departure could have a profound effect on employees’ morale which needs to be understood and mitigated. It is about winning the hearts and minds of your employees by giving them the time to buy into the vision for the future and build trust and confidence in the new leadership. Careful planning and roll-out needs to take place for your employees to feel included and part of this journey. Clear and timely external communication A risk assessment on the impact on the business from an external perspective must also be done. This means accounting for how clients, customers, stakeholders, shareholders and the wider market will react and whether it could have a knock-on effect on the perception of the business and its future success. Consideration must be given to how relationships can be handed over, and the timelines involved for a smooth and consistent transition. External communications must also be handled competently by your PR team to ensure those with a vested interest in your business are informed in an appropriate and timely manner. When managed well, your clients, stakeholders, and wider industry influencers will feel confident in the future leadership and as excited about the future of the business as you are. Fit for the future Through careful, collaborative planning and visioning, and timely, considered communications, a smooth leadership transition and legacy can be achieved within any organisation. While it is a time of change and upheaval, it can also be chance for real growth and opportunity. With the right guidance and independent support, which external experts such as Grey Lemon can provide, it can be a valuable time of reassessment and realignment. If you are a CEO or founder thinking about retirement or change, we recommend that you start planning now - it is never too early. In doing so, when you leave the business, you can be confident that the right leaders and vision are in place, and the business can thrive in the future. VISION & STRATEGY www.ceotodaymagazine.com 67 W: www.grey-lemon.com E: enquiries@grey-lemon.com
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