Exiting a business for a stress-free retirement

Few events carry greater risk to business owners than their retirement as CEO.

By Lesley Calland, managing director, People Power Coaching

In reality, there should be a clear strategy for the development of the next generation of leaders in an SME as part of ’business as usual’ planning, removing the hiatus around an event such as retirement.

Renewal and refreshing their leadership cohort, including securing a smooth succession for their own role, is more than good governance and practice, it’s sound business sense.

Secondly, there is a lack of investment in development of the future leadership team and no consideration linking the competencies and capabilities needed to drive the business forward.

1. Ensure the board has clarity on strategy, so they are in a position to better identify the kind of future leaders needed.
2. Build profiles for the leaders of tomorrow, enabling candidates’ potential to be objectively measured against competency profiles.
3. Create and implement a development plan for the near and medium term internal talent pool, involving on-the-job training, mentoring and coaching.
4. Ensure there is transparency on succession management to enable effective knowledge transfer.