Leadership succession – what every EO business should know
Leadership succession planning is a key challenge for every business – and not something any of us would choose to do ‘on the hoof’.
Yet ‘on the hoof’ is how the leadership succession process is likely to be unfolding in many companies today.
It’s easy to see why.
The economic environment is tough, so if you’re a business owner who’s chosen employee ownership (EO) for your exit strategy – or an MD picking up the reins – finding the time and resources to plan a smooth leadership succession can be hard.
Getting the timing right
Jeremy (far left) with business founders he has supported – Chris Barrington Brown (Cunning Running), Neal Criscuolo (NC2) and David Sproxton (Aardman)
Yet, as our MD Jeremy Gadd says: ‘Planning your own succession is one of the greatest responsibilities a leader of any business can have.
‘One of the first things to recognise when stepping into a new leadership role is that your time is limited and it’s important to plan.’
Jeremy’s view reflects what he’s learned from supporting a wide range of founder owners – and their successors – to navigate the succession process over the last 10 years.
He has also seen effective leadership succession in action through his role as an Independent Trustee.
He says: ‘In my experience, the leaders who have achieved the smoothest successions are those who have started thinking about it long before it’s crossed anyone else’s mind.’
Creating a foundation for success
So timing has a role to play. But how else can you prepare yourself and your EO business for a successful transfer of the reins?
The first step is to get informed. Understand the challenge of leadership succession – and what’s at stake.
The ‘The Road to Succession: Exploring Leadership Succession in EO businesses’ report is a good place to start.
JGA and Telos Partners co-delivered this major project on the transition of leadership in employee-owned businesses for the Employee Ownership Association (EOA, carrying out the separate interviews with 40-plus former owners and successors on which the Road to Succession’s findings are based.
Learning from experienced hands
‘I’d recommend the Employee Ownership Association’s ‘Road to Succession’ report to any founder or MD who’s leading an employee-owned business today’
Jeremy Gadd, MD, J Gadd Associates
The result is an invaluable piece of research that spotlights what works (and what doesn’t) with practical insight and guidance for those planning, or undergoing, leadership succession in their own EO business.
This includes top tips from founders and MDs with lived experience of the challenge, ranging from getting started early and setting a realistic timeline to not being ‘afraid’ to ask for support.
The fact that the Road to Succession report draws on the first-hand experience of the 20-plus EOA member companies who took part sets it apart.
‘I’d recommend this report to any founder or MD who’s leading an employee-owned business today,’ Jeremy confirms. Download the Road to Succession report here.
Investing in the right support
Telos presents the report’s findings at the EOA Conference 2023
So you’ve read the report – what next? The second step is to seek the trusted support you need to guide you through this part of the journey.
After the Road to Succession report was published, Telos Partners’ Adam Campbell and Alex Bloom shared the key findings in a packed session at the EOA Conference 2023.
‘The number of people who attended the session reinforced the importance that employee-owned companies place on leadership succession,’ Alex says.
‘Feedback from the event pointed to the benefit of being able to tap into experiences and insights from businesses who have already navigated their way through leadership succession.’
Jeremy agrees.
‘Getting your succession planning right is an important responsibility for every business leader,’ he concludes. ‘The key is to start thinking about it long before anyone else so you can prepare yourself and your business for the time when you’ll no longer be there.’
Find out how we can support your EO business to plan and navigate your leadership succession. Get in touch with us now.