Joseph Andolino’s Five Steps to Creating a Worthy Succession Plan

Joe Andolino | Planning for Succession
855_joseph-andolinoFor more than 30 years, Joseph Andolino has consulted leaders in creating succession plans that skillfully avoid overburdened taxes, and developing a good succession plan is not easy. The reward is that the experience of building a company over a lifetime and then successfully transfering to the children is enormously satisfying. Here are the basic requirements company heads must meet in order to make a good succession plan:

First step: get all family members, including the founder to undertake to work on succession planning. Commit means involving time and financial resources. In addition, patients and families should be unprejudiced and be willing to sacrifice their personal interests for the benefit of the group. The touchstone of the commitment is the understanding of the economic and personal project failure can have for every family.

Second step: helping families to set aside all competitive attitude and teach constructive ways to work together. It is essential to minimize possible shade of aggressiveness that usually characterizes sibling relationships. It may not be possible to completely overcome those feelings, but if the family is not able to learn to encarrilarlos eventually someone will want to leave the company.

Third step: implement a planning process that starts with a mission statement and strategic plan. Develop a mission statement for the family and one for the company are the first steps to be more systematic about the future direction of both. In addition, senior executives should institutionalize the formula for success of the company, to reduce its dependence on founder. Your goal should be to run the business efficiently and effectively, while maintaining the special qualities that originally led to success.

Fourth step: create a personal development plan for family members working in the company. The personal development plan aims to strengthen individuals in the skills necessary for success when they take over the company. The family business adviser must emphasize that personal goals and personal development will improve the company and help it all come to understand fully what the overall direction of the company and how each individual fits into it. The most common weakness successor group is that its members is that its members do not fully understand the financial aspects of the company. Counselors can recommend all areas of business administration courses in college and attend conferences, seminars.

Fifth step: develop an appropriate governance structure for communication between managers and company executives. A family council and a family forum can balance the diverse interests of all members, in a way that is convenient for business, family and individuals. These structures provide
a forum for thought and debate of the issues.

Joe Andolino often reminds company leaders that developing a succession plan helps to avoid disputes in the future while ensuring the vision carries on. This succession planning also lends a hand to estate plans and avoiding taxes.

Joseph Andolino has consulted companies internationally for more than 30 years.



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