Tag Archives: Boundary

How Do You Plan for Succession? Four Points

Situation: The CEO of a family business seeks to create a succession plan. One family member has expressed an interest in taking the reins of the company but has failed to take the initiative to demonstrate that he is prepared to take on this role. Another family member is now demonstrating both interest and initiative. How do you plan for succession?

Advice from the CEOs:

  • How should this situation be approached?
    • Do not view this situation competitively, but rather from the standpoint of what is best for the whole family because many family members stand to benefit from the ongoing success of the business.
    • Whatever decision is made, the successor will need support and assistance understanding both the financial and business sides of the company. This individual must also be aware of conflicts and challenges that face the business.
  • What else should be done to prepare for succession?
    • Given that there are two individuals interested in becoming CEO sit down with each individual and negotiate a clear boundary statement on what you, as CEO, can and can’t do, as well as what can and cannot be expected of you, as CEO, as the succession decision is made. This understanding should be documented in writing and signed, signifying understanding by both the CEO and the candidate. Each candidate should have their own signed agreement with the CEO.
    • In a family business, the CEO, as guarantor of the company, may be faced with a different level of financial risk than other family members. Both candidates for the CEO position must understand that if they accept this position, they also accept this risk.

How Do You Set Limits on Demand for your Time? Eight Tactics

Situation: A company’s CEO wants to segue from rainmaker-project manager to leader, with others taking the lead on projects. He has tried raising prices on his time, but clients are willing to pay the higher price so this hasn’t worked. How does the CEO set boundaries so that he is not involved in day-to-day project management?

Advice from the CEOs:

  • The most important question is: where’s the real battle – is it in the client’s or your own head? Is this really a client problem, or are you unwilling to let go? You need to answer this question before alternate strategies will work.
  • Look for the right project managers. You will change your hiring when the goal is for you to not be deeply involved.
  • Hire people who are better than you.
  • Gradually phase existing relationships to others.
  • In early work with a new client, set expectations so that your involvement is at the appropriate level and your team handles the heavy lifting.
  • Instead of attending meetings in person, use electronics – video conferencing. This saves the travel time for the meeting.
  • Don’t respond to client emails too quickly when you are copied – let others respond.
  • As one company grew, they invented new roles with high profiles but little work. These roles were figureheads for project leadership.
    • Project emails were set up so that all client emails went to the team, as well as the CEO, but the team would then respond to client questions.
    • Over time, the CEO was able to “just say no.”