Assessing Your Successor
This week I was up in Blackfoot, Idaho at the invitation of the University of Idaho Extension to present at one of their farm and ranch succession workshops. One of the things we discussed was assessing your chosen successor. When I meet with potential clients about succession planning for their farm, ranch, or other family business, one of the first things we discuss is who they think will be the successor. Once we have identified who the individual or individuals might be, the next important step is to assess the potential successors. Here are some questions to ask:
Does the successor know they are the successor?
Do they want to be the successor?
Where is the person in his/her readiness to take over?
Is the person living in close proximity to the operation or will they have to relocate?
Has the person engaged in outside education or employment that will benefit the operation?
What unique skills and abilities does the individual bring to the operation?
What are his or her weaknesses?
Will the person’s current financial situation impact their ability to participate in the operation?
If the person is married, does the spouse support participation in the operation?
Is the marriage stable?
What is the background of the spouse?
Does he/she understand what will be required?
Does the individual have a disability that would need to be addressed?
Does the individual have poor money management skills?
Does the individual have drug/alcohol problems?
How would you describe the individual’s personality?
Are there existing conflicts with other employees that need to be addressed?
These questions should lead to a deep and thoughtful assessment of the potential successor(s). This assessment should be ongoing throughout the process and keep you heading in the right direction. Assess each individual's talents and skills to determine if they have what it takes to take over. Train your potential successors for success. Continually narrow the field. As Jim Collins teaches, you want to have the right people on the bus and you want them to be in the right seats. Don’t leave this to chance.
This post is for informational purposes only and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Nothing herein creates an attorney-client relationship between Hallock & Hallock and the reader.