All flourishing small businesses go through it – and only organizations with a well thought out plan survive it!
So what is “it?” “It” is the transition from being “founder run” to forming a leadership team to set the vision and develop and execute the plan that will allow the company to expand and grow.
Having been part of a transition from the founder - both running the company and being the “face” of the organization, to now serving as the President/CEO/Owner of the business, I have been an active participant throughout the process.
If there were a couple of key takeaways that I could share, they would be:
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Develop a plan for transition (include a timeline)
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Ensure the founder is actively involved and supportive of the succession plan
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Build a strong executive team, and engage them during the transition process
When building your executive team you want to be sure you are empowering individuals that share the overall vision of the company but will bring a new voice to the organization while at the same time support the founder in transitioning key relationships.
The key to a successful transition is communication. You need to be communicating in all directions:
- staff
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clients
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vendor
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“friends of the firm”
As the saying goes: “In the absence of information, people tend to make stuff up.” The goal of your communication plan should be one of transparency and awareness. Everyone should be aware of the transition plan, the timeline surrounding that plan, and what role, if any, they play in that plan.
With a solid plan and ongoing communication, transitioning an organization from being “founder run” to executive team driven will ensure the change is well executed.
