The good, the bad and the exit...

Let's go back to 2013 and the near completion of a secondary buy-out for Optionis with me as the CEO. I had been pretty clear with the incoming investors at the next event, I intended to step down and we had a plan to cater for that. The truth was that we probably had half a plan as it needed to be flexible based on how things might pan out. However, it set in train some plans and actions which would mitigate any risk of a founder "leaving" and gave clarity to the management team on what might be expected of them.

So here are my learnings and thoughts on succession which by late 2016 had come to fruition:

1. It is worth considering succession not only from the traditional exit point of view but also from the strategic plan perspective. What happens if the leader(s) aren't available to lead? Who steps in? Do we have a plan to develop our managers to leaders regardless of the stage we are at? So many MD's will say to me, "the managers just aren't up to it yet" and be unable to evidence the same development plan that they might have for general staff, for their senior managers. A once a year quick review/note and some thoughts or ideas might be enough - doesn't need to be complex.
2. Develop and review a good enough plan, stay open, clear and ready to change if things go differently. One outcome from an event-based strategic review was some additional exec development plans. It also allowed some of the team to be clear with their own intentions and created real clarity.
3. Transparency is good. It's perhaps not without risks to come clean with your colleagues and discuss your exit or desires in this regard. How that is received may be a reflection of your culture and if you are concerned about revealing intentions, you may want to address the culture first. It should allow a degree of alignment and work towards a common goal.
4. Are you psychologically prepared? It will take a minimum of 12 months before an exit event to be ready mentally for the changes in my opinion. You are giving up your baby, you are no longer the "boss", you may have to become invisible, you may even be written out of history but remember your goal. Take some time to reflect on how all that may make you feel and find someone to talk to about it. I was lucky, my now business partner Colin Williams, helped me and the business with this transition.
5. In reference to 4. imagine exiting your business and visualising whether you will have sellers remorse. Not necessarily from a financial perspective but perhaps in relation to status. If that creates worries and doubts then you perhaps need to refocus on preparation and the plan.
6. To be successful in achieving a good transition you will inevitably have to change your role, focus, and visibility. You can still add value, take on new tasks, be a different type of mentor but you do have to change. Being less critical to the growth and positioning of the business is what is required.
7. Post exit, be prepared for the changes not only in yourself but in how the business now looks and operates. Remember that the business has a voice, leaders, founders, directors, and managers are custodians in the end. Seek some wise counsel if needed on how you will feel and define yourself after the event. Once the honeymoon is over, you may (or may not) want to carry on and being clear about your new purpose is important.

Having said all of the above, personally, I still found the transition difficult. I perhaps went too far in distancing myself from my old enterprise and the people whom I had spent 17 years with. That was a by-product of having to stand back for some time but psychologically I was well prepared.

I would love to hear how others have faired in this regard or indeed how they are preparing for a similar event (big or small - the challenges are the same).