Plain and Simple: Bright Business Insights Fall 2017 | Page 5

PASSING THE TORCH How to Successfully Transition a Business to a New Leader In business, leadership changes happen all of the time. Unfortunately, many businesses struggle to survive a leadership shakeup. But rather than list off a whole slew of reasons why leadership changes fail, this article will focus on what you can do to ensure a successful leadership transition in your own business when the time comes. I’ve lived through a handful of CEO transitions here at Rea, and I’ve worked with countless clients that have worked through leadership changes. Based on these experiences, here are some best practices I’ve picked up along the way. If You’re Passing Your Business On... • Take Your Time If You’re Taking Over The Business... • If you’re taking over as the new leader of a business, be But it can be much easier if it’s orderly and well thought-out. aware of your management style – chances are, it’s different The last thing you want to do is transition hastily because than the old leader’s style. of a crisis. It’s always better to have an extended transition Sure, you want to make an impression on the organization, period – even as long as 18 months – to ensure that the new but if that’s your top goal, you won’t be successful. Instead, leader is well-trained on operational and critical issues. You evaluate what’s going on in the organization, listen and don’t don’t have a chance of transitioning successfully if you do it be hasty when making decisions or changing processes or haphazardly. • Tread Lightly Transitioning a business to a new leader is a difficult process. procedures. Remember Your Customers Just give it some time. Allow your team to become You’ve built a lot of relationships over the years. To help comfortable with your leadership style. Earn their respect and ensure a smooth transition, introduce your customers to new solicit their input and buy-in. Then you can begin to move the team members before you exit the business, especially if organization in the direction you want it to go. you’re in a relationship business. Just be careful not to move too quickly, act without listening Show your customers that you’re leaving them in good hands. or change too much too soon. They will probably be nervous about dealing with someone new, and the person taking your place will feel like he or she has big shoes to fill. Make introductions early and often. You can’t transfer the relationships that you built over the years, but you can build a good foundation. • Respect The Pedestal When you’re the leader of the company, you’re automatically on a pedestal. Whether you earn the right to stay on that pedestal or not is completely up to you. Be very conscious of what you say, how you say it and who you say it to. Set the tone for how people view you as a leader. Things have changed, even if you don’t feel it. People expect different things from you so you have to view yourself differently. by: Dustin Raber CPA, CMP, Principal 545 N. Market St. Wooster, OH 44691 [phone] [email protected] When it comes time for you to pass your business on, be sure that you’re giving the next leader – and the business you’ve spent so many years building – the greatest chance of success. And if you’re the one taking over the business, make sure you have a learner’s heart and take things slow.