As we begin 2022, an increasing number of businesses are preparing for transition as Baby Boomers are seeking to retire, sell their businesses, or transition ownership to the next generation. The Baby Boomer generation encompasses those in their mid-70s to late-50s, which is prime time for transition and retirement.
In preparation for an upcoming transition, one important aspect is the preparation of the leadership team. The more capable a leadership team is without the owner’s direct involvement, the more successful a transition will be. And, if selling, the more valuable the business will be to a buyer. This is probably not news to you or surprising. If the owner has to run the place, the place isn’t going to run very well without the owner.
The question then becomes how to put in place a capable leadership team that can handle the day-to-day functions of the business. There are three sources of knowledge I recommend exploring. The first source of knowledge is your network. Others have gone down this road before you. They have made mistakes and learned valuable lessons. Some have been successful. Who do you know that is willing to share their experiences with you?
The second source of knowledge is the bookstore or library. There are many excellent authors that offer insight into building effective leadership teams. One of my favorite authors, as many of you know, is Patrick Lencioni. His book, The Advantage, is one of the best go-to resources on my bookshelf. If you’re not a reader, listen to audiobooks. But don’t miss out on this great resource.
The third source of knowledge is industry-specific training programs provided by consulting groups and trade associations. Today, there are so many great options for on-demand educational programs, virtual and on-site training, one-on-one and group programs, etc. The key here is to choose the right option for you and then go all-in with that option.
How about you? Is your leadership capable and cohesive? Can it function without the owner’s involvement? What can you do in 2022 to improve in this area?
Now go forth.
