SUCCESSION PUBLIC SPEAKING PLANNING
What ’ s the Plan ?
Start The Succession Conversation Now — Six Strategies That Are Designed To Keep Your Tradition Alive
BY : BETH BELL , SHRM-SCP CFO & VP OF OPERATIONS
I
am the CFO of a family-owned business — and I ’ m not in “ the ” family .
I ’ m not alone . In this country , family businesses play a huge role in our economy , providing 60 percent of the nation ’ s jobs . I ’ ve had the privilege of working for several family businesses throughout my career . These businesses are nimble , entrepreneurial , and are actively engaged in their operation . They have a great deal of care and concern for their clients and their employees . While I am not “ in ” the family , I am treated like I am . There is enormous pride and accomplishment in building a successful family business .
LEADING A LEGACY
Less than one-third of family businesses transition to the next generation . This is a sad statistic . In 2017 alone , twentyseven insurance firms in Maryland , Delaware , and Virginia sold to either national firms , publicly held firms , or to competitors . Family businesses in a broad range of industries — not just insurance — end up being acquired , sold , or even shut down because they haven ’ t developed a concrete succession plan .
Creating a succession plan isn ’ t easy . In fact , it ’ s a ton of work . It requires the previous generation to be open to letting go and the next generation to craft a business plan that is capable of sustaining the operation for the future .
Recently , Deeley Insurance Group ’ s president , Laura Deeley Bren , joined her father as a partner in the firm after running the operations for more than ten years . We would like to share what we have learned from our own succession plan experience .
JUMP-START SUCCESSION PLANNING — 6 TIPS
• Start Yesterday . If you didn ’ t start the conversation yesterday , begin talking today . All too often , succession is a topic that is kicked down the road because it is difficult to work on the business while running the day-to-day operations .
• Get Help . Commit the financial resources to enlist the help of advisors to assist in navigating through the process and hold you accountable to executing the plan .
• Build a Bench . The succession discussion needs to delve deeper than the ownership level . Constantly reassessing your team and reinvesting to deepen your bench of great employees enhances your relationships with your clients . It creates depth when one employee leaves or retires as there will always be others to advise and guide your clients , hopefully cementing your relationship in place long into the future .
• Continue Growing Forward . The business itself has to adapt and evolve to be able to perpetuate . Are you growing ? Are you relevant ?
• Keep Working the Plan . Once companies establish their succession plans , they should continuously reevaluate the plan , maintaining some element of transparency so that employees have confidence in their future with the company and clients can solidify their trust in you . This open conversation can help define a positive and desirable company culture .
• Take Heart . These discussions can get personal and raw . Whether you are a member of the family or an advisor helping to navigate the discussion , it is important to remember the human element in these conversations . Aligning everyone ’ s interests is an important component of a successful plan .
The truth is , succession planning can be a challenging and arduous process . If you stay focused and are willing to work hard , the result will be clarity and peace of mind for you and your entire team . We ’ d be happy to share our experience and the lessons we learned along the way . Feel free to contact me at 410-213-5531 to discuss . +
Beth Bell is the CFO and VP of Operations at Deeley Insurance Group . Her experience in operational accounting spans over 16 years . Beth serves as Chair of the Executive Committee of Junior Achievement of the Eastern Shore ( JAES ), as well Chair of the Worcester County Board of Director for JAES . She is a Senior Certified Professional with the Society for Human Resource Management . Beth is a native of Ocean City and currently resides in Bishopville , MD with her husband and 4 children . 410-213-5531 • bbell @ deeleyinsurance . com
28