Successor Readiness Questionnaire

Transcription

1 Successor Readiness Questionnaire

2 Introduction Over the last 18 years, Michael Beck International has become a thought-leader in executive development. We've worked with executives at all levels within companies both large and small across the US and internationally. We developed this list of successor readiness questions as a result of the leadership issues we've encountered over the years. These questions are intended to gauge the readiness of a successor to take the reins of a company and successfully guide it into the future. It's critical for a successor to hone these skills and traits, as their competence, confidence, and effectiveness will strongly influence the value of a company and will determine whether a company can generate the cash flow necessary to meet its future obligations. A successor, competent in his or her leadership effectiveness, will: Maximize Growth, Profits & Cash Flow Minimize Turnover, Loss of Customers & Risk Reduce the Stress of a Transition Help Ensure the Founder's Legacy Reduce Demands on the Outgoing Owner's Time Use these questions as a guideline to assess a successor's preparedness. By assessing and discussing the issues highlighted by these questions, you can better prepare for an exit and ensure that the exit is successful. 2

3 Successor Readiness Questions (Page 1 of 2) Relationship with the Owner 1. Has the successor been allowed to make important decisions? 2. Does the successor feel that he or she has been stifled? 3. Has the successor developed sufficient self-confidence to be at the helm without needing the blessing of the owner? 4. Has the successor been allowed the freedom to make mistakes? 5. Has the successor been mentored on the business beyond the "technical" aspects? 6. Has a vision and a strategy for the future been shared with the successor? 7. Has the successor learned from the mistakes made in past years? Character and Competence 1. Does the successor have foresight and the ability to imagine a future different from the present? 2. Is the successor's ego in check? 3. Does the successor have a positive attitude and a focus on solutions rather than dwelling on the problems? 4. Does the successor follow through on his or her commitments? 5. Has the successor developed an Owner's Mindset, or does he or she think like an employee? 6. Has the successor developed a strong executive presence so he or she can instill confidence, project the ability to be in charge, and make decisions? 7. Does the successor have an appropriate level of self-confidence - one which allows them to make decisions but also admit mistakes? 3

4 Successor Readiness Questions (Page 2 of 2) Interpersonal Skills 1. Is the successor respected and trusted within the organization? 2. Does the successor have the ability to persuade and get broad buy-in for ideas and initiatives, or do they simply order people around? 3. Does the successor relate well to people and treat them like "people" rather than like "things"? 4. Does the successor lead people, or does he or she "manage" them? 5. Does the successor express him or herself well? 6. Does the successor treat people like adults, or does he/she treat people like children - micromanaging, controlling, and scolding/chastising? 7. Has the successor learned to show appreciation for work done? Organizational Insights 1. Is the successor mired in day-to-day operations, or can he or she rise above it and see the bigger picture? 2. Does the successor work to understand underlying problems, or does he or she just react to symptoms? 3. Can the successor remain objective and make changes strategically rather than making changes simply because they are now in charge? 4. Will the successor remain true to the values and culture of the company? 5. Has the successor demonstrated the ability and willingness to develop people around him or her? 6. Does the successor consider the broader impact of their decisions or are they focused on own domain (engineering, finance, operations, marketing, etc.)? 7. Can the successor balance short-term success with long-term success as they make decisions and develop new strategies? 4

5 What's Next? Once a successor's level of readiness has been evaluated, they should be coached and mentored. This development usually takes about 6-12 months. Unfortunately, not every owner has the time or the expertise to help their successor address these developmental issues. Additionally, the owner and successor are often too close and have too much history to be objective with one another. If any of these issues exist, we can help. About Michael Beck International Michael Beck International, headquartered in, USA, is passionate about developing successors and preparing them to successfully run a company. Our nationwide team of experienced executive coaches is committed to helping leaders and companies bring out the best in people and improve the bottom line. Let us help you prepare your successor to be an effective leader and a successful owner. We offer successor assessments and executive coaching - all designed to help successors succeed. In addition, we work with owners to strategize on how they can best mentor their successor. Please call us to discuss your specific situation. Eliciting Excellence "Bringing Out the Best in People" TM Michael Beck International, USA