The resignation of Robert Mugabe and the current race for power within the ANC have highlighted the importance of succession planning within the political landscape, but just how important is it for your business? Statistically, just 28% of succession plans end up being truly successful. On this week’s The Money Show with Bruce Whitfield, we considered the all-important questions you need to ask of yourself, and of your business, when creating a succession planning strategy for your business:
How creating simplicity enables scaling. Simplicity is only possible with strategy and a clear understanding of who you serve. It's found in product design, supplier selection, business systems across the organisation and especially in customer segmentation and engagement. It's rare in any business and especially so in a 3rd generation business. It's also key to next generation succession.
By Pavlo Phitidis
Building a family business, and passing it down as both a legacy and an asset, is seldom achieved. A mere 30% of family businesses passed on to the next generation survive, and only 12% making it to the second generation. A tiny 3% survive to the third. This week, on The Money Show with Bruce Whitfield, we outlined the ways succession plans go wrong, and how you can ensure your family business enjoys not only longevity, but long-term success too:
The statistics are terrifying. A mere 28% of family businesses, across the globe, successfully move from founder to next generation, and only 4.8% make it to the third generation. How do you ensure that the momentum, built by the first generation, continues when the second one takes over? On The Money Show with Bruce Whitfield, Pavlo Phitidis outlines the fundamental principles of creating a succession plan for your family business:
Smart and successful businessmen have faith in their vision for their companies, but they need to be aware of their limitations and see themselves and their situations in the proper light.
A failure to do this leads to the business blind spot, a place where we can’t see what is going on around us. It’s also a place where we see things not for what they are, but what we perceive them to be. It grows from a history of how things have always been done in the business and a narrow view of what the business needs going forward. On The Money Show with Bruce Whitfield this week, we discussed business blind spots, how they develop, what they cost your business and how to prevent them.