14
MiMfg Magazine
December 2019
• Plan for the development of potential successors to
ensure they can succeed if moved into a new role
• Review the plan annually and, if necessary,
make updates
While large companies present their own unique
challenges, a succession plan is especially essential
for the small and mid-sized businesses that make up
the majority of Michigan manufacturing.
“In my experience, a succession plan is often
more important for a small business than a large
business, because a small business frequently doesn’t
have the necessary management talent or resources
available to address the void that is created when
there is an immediate loss such as the death of a key
person or stakeholder,” explained Richard C.
Buslepp, an attorney with Kerr Russell and Weber PLC.
Ask the Right Questions,
Get the Right Results
“A proper succession plan should be written and
communicated throughout the management team so
they can include necessary actions in their planning.
It needs to be flexible enough to incorporate changes,
yet concrete enough to properly guide its execution
through the most difficult tasks,” said Dennis Theis,
CPA and CVGA for Maner Costerisan. “The plan
should start with the needs of the owner(s) who will
be the driving force behind it. That may be driven
by family, financial, legacy, philanthropic or other
needs. The plan must be aligned with those needs
or the already uphill climb gets steeper.”
Your plan should clearly communicate key
objectives, people and timelines and, to do this, you
need to be asking the right questions (see sidebar at
right). As Geisman explained, “the questions we’re
asking of our employees are if and when they are
planning to retire because that determines the
timeframe we have to work with to ensure a proper
transition. We can also then see who might qualify
for the position when the retiree leaves and work to
properly prepare them. It’s also important to have
regular follow-ups with your aging workforce so that
your planned transitions remain on schedule.”
Just like good strategic planning,
succession planning provides a sense of
direction and stability for the future.
— Gina Jacquart-Thorsen • Stormy Kromer
Don’t Procrastinate
on Succession Planning
“Succession plans aren’t simply intended to
address positions held by older employees. They are
also intended to address critical positions held by
non-retirement-aged key employees,” reminded Jim
Bitterle, managing partner for EDSI. “It is easier to
predict when older employees may depart. However,
the departure of critical employees, who are not near
the retirement age, can be highly unpredictable. These
departures, depending on the importance of the position,
can have a devastating effect on an organization.”
Jeff Koeze and Koeze Company team member Zdena Pranjic.