Statistics reveal a concerning trend: only 15 % of family businesses have a succession plan and just 30 % survive into the second generation.
the transition into a collaborative journey rather than a sudden handover. A multi-year succession strategy fosters confidence and reassures employees about the future.
The Importance of a Multi- Year Succession Plan
Effective succession planning is a multi-year endeavor that requires establishing realistic milestones.
Key elements of a successful plan include:
Statistics reveal a concerning trend: only 15 % of family businesses have a succession plan and just 30 % survive into the second generation.
• Skills Transfer: Both generations possess unique strengths. The older generation offers invaluable experience and industry knowledge, while younger leaders contribute fresh ideas and tech-savviness. Developing a strategy for skill transfer, starting with job shadowing and hands-on training, is crucial.
• Milestones and Dates: Clear milestones ensure accountability. Setting deadlines for responsibility shifts or training completion helps keep the process on track. Regular check-ins allow for adjustments as needed.
• A Supportive Environment: Succession doesn’ t need to be fraught with anxiety. Framing this period as an opportunity for growth can make challenges more manageable. This is a chance to build something great together, leveraging the strengths of both generations.
Succession planning should not feel like an insurmountable challenge. A structured approach keeps everyone aligned. Regular check-ins provide opportunities to discuss goals and challenges, ensuring the business continues to thrive while honoring its legacy.
Building a Legacy of Growth and Resilience
Passing a family business to the next generation is a powerful, prideful achievement. When executed thoughtfully, it strengthens family bonds and positions the company for long-term success. Given the ever-evolving construction industry, adapting roles and responsibilities is essential for progress.
The next generation is not looking to erase the past; they aim to build upon it. With effective communication, preparation and a solid plan, succession can be an exciting journey toward a shared vision for the future.
With over 20 years in the construction industry, Jerry Aliberti, founder of Pro-Accel, has held senior leadership roles managing high-stakes projects for top heavy civil and commercial construction firms in New York City. Jerry has led projects worth over $ 300 Million as both a senior project manager and superintendent and has estimated projects valued above $ 10 Billion as a senior estimator. His extensive hands-on experience spans contractors with annual revenues from $ 100 million to $ 1 billion.
Today, through www. pro-accel. com, Aliberti helps contractors of all sizes nationwide improve their operations, secure higher-quality bids and deliver higher profitable projects. Pro-Accel specializes in improving cash flow, automating processes and reducing operational stress, so contractors can scale efficiently without the chaos. Aliberti can be reached at jerry @ pro-accel. com
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