A natural part of the exit planning conversation is also succession planning. The two go hand in hand.
If you’ve ever dreamed of replacing yourself in the business, here are a few hard-earned insights I’ve developed over the years as I’ve helped leaders make this transition:
Succession isn’t about replication. It’s about elevation.
-
Tenure doesn’t equal readiness. The longest-serving /surviving exec might not be your best successor. Loyalty important, sure – but capability wins.
-
Different doesn’t mean deficient. Your successor’s style may differ from yours. It most likely will, hence why you two worked so well in the past. This is not a bad thing and most certainly isn’t a threat. Rather an opportunity to infuse a different energy into the business. Maybe one that’s well needed.
-
Respect is critical. Without it, their effectiveness will be capped.
-
They are mortal. Plan for their successor too. That’s real stewardship.
-
Comp needs to match context. Different values, stages, and incentives may apply. Align on future outcomes, not past structures and formulas.
-
Ownership mindset is non-negotiable. If they’re waiting for the ball, they’re not the one. You want a quarterback, not a receiver.
-
Think systems, not silos. They must see the whole board – not just their piece. Cross-functional fluency is also non-negotiable. At this level it’s about the big picture.
-
Better than you is the bar. But if they’re 90% as good and the org still thrives – that’s a win.
-
Co-creation is required. This isn’t a handoff. It’s a build-with process: enrollment, iteration, authorship.
-
It might not work. That’s reality. Have a plan for that too.
-
It might work. And if it does, you’ve just bought yourself freedom, legacy, and peace of mind.
Succession done well beats the alternative.
Poll Results: The results are in from last week’s survey:
Song of the week…
Tim Martinez
“The Inside Man”
-
Grab my latest book “Do Good Work” – Minor Shifts, Major Impact (buy here)
-
Time to optimize your business? Let’s chat
-
Have thoughts? Leave a comment
Feel free to unsubscribe if this isn’t for you. No hard feelings. Better yet, share it if you feel someone else needs to hear this message.
PS – from time to time a few typos or a broken link may occur, just visit my Substack page for the most up to date version
