Succession Planner

A Small business Succession Planner

Build a plan for Mark Hazleton Companies 1. Formulate Questions What is the current structure of your family business? Our family business is a Corporation with a centralized management structure. Who are the key stakeholders involved? The key stakeholders are family members who are part of the board of directors, senior management, and a few external investors who hold minority shares. What are the long-term goals of the business? The long-term goals are to ensure business protection, expand and grow our market share, and make a positive social impact. Is there a preference for the next leader to be a family member? Yes, we prefer the next leader to be a family member. 2. Organize Information Business Structure: Describe the current ownership and management structure. The business is owned by the family with a centralized management structure. Key positions like CEO, COO, and CFO are held by family members, while other senior management roles are a mix of family and non-family members. Stakeholders: List the key stakeholders and their roles. The board of directors consists of five family members and two external advisors. Senior management includes family members as CEO, COO, and CFO, and non-family members in roles such as Marketing Director and Operations Manager. External investors are minority shareholders with no active management roles. Long-term Goals: Identify the top priorities for the business. Our top priorities are business protection, staying within the family, expansion and growth, and creating a social impact through community initiatives and sustainable practices. Leadership Preferences: Clarify if the successor should be a family member and the specific role they should assume. The successor should be a family member, ideally taking on the role of CEO. 3. Clarify Objectives What are the most important objectives for succession planning? The most important objectives are ensuring continuity, preparing the successor, maintaining family harmony, and legal and financial planning. Are there any specific challenges or concerns regarding succession? We are concerned about potential family disputes and the lack of preparedness of the potential successor. What are the priorities for maintaining business continuity? Priorities include training the successor, establishing clear governance, robust financial planning, and a comprehensive communication strategy. 4. Understand Needs Talent Development: What efforts are being made to develop internal talent? We have leadership training programs, mentorship opportunities, and occasionally utilize external training programs. External Candidates: Are external candidates being considered for leadership roles? No, we are focused on grooming internal talent for leadership roles. Family Dynamics: How do family relationships impact succession planning? Family relationships have a positive impact but can occasionally be strained due to differing opinions on business strategies. Documentation: What legal and governance documents are currently in place? We have a shareholders agreement, a documented will, and a basic documented succession plan that needs updating. 5. Summarize Plan Early Planning: Highlight the importance of starting succession planning early. We understand the importance of early planning and have started the process well in advance to ensure a smooth transition. Address Reluctance: Emphasize the need to overcome reluctance to discuss succession. We are working on overcoming the reluctance by holding regular family meetings and involving all key stakeholders in the discussions. Business Continuity: Outline the steps to ensure business continuity and stability. We have established a comprehensive training program for the successor, created a detailed financial plan, and are working on a clear governance structure. Family and Business Priorities: Detail the agreed-upon family and business priorities. The agreed-upon priorities are business growth, maintaining family control, and contributing to social causes. Stakeholder Roles: Define the roles and rights of all stakeholders in the succession process. Family members on the board will provide strategic guidance, while senior management will handle daily operations. External investors will remain informed through regular updates but will not have a direct role in management. Governance Alignment: Ensure governance and legal documents are aligned for a seamless transition. We are updating all governance and legal documents to reflect the new succession plan and ensure alignment with our long-term goals. Proactive Communication: Develop a communication plan to keep all parties informed and maintain transparency. A communication plan is being developed to ensure transparency and keep all stakeholders informed about the succession process and business updates. BUILD MY PLAN