Cultivate a Key Person
Discover Your Successor
In a recent post I suggested that the ideal person to buy your business when you retire or if you die early, could be sitting in the office next to you. I suggested that developing a key profit making individual amongst your existing employees could be the answer when building a plan to guarantee full value for your business at retirement time. Today let us talk about how to go about developing that key employee.
One of the biggest misconceptions that business owners have is that the value of their business is directly tied to their personal involvement in managing all aspects of their operations. However, the management team and the motivating of key employees can be life changing. The term “key employee” can mean different things to different people. Before you head down the path of identifying key employees in your business and creating plans for the future, you may want to spend some time thinking about which of those employees are truly “key” to your future. A true key employee has three critical qualities.
- He or she has a direct and significant impact on the value of the business.
- His or her combination of skills and experience would be difficult to replace.
- He or she will participate in a meaningful way in the strategic future of the company.
The employee has a vision for the future, brings ideas to the table, and solves problems creatively What do they want in exchange? Opportunities for advancement, formalized incentive planning and retention measures are key to successfully leveraging a key employee’s value. Jack Welsh former CEO & Chairman, of General Electric cites some intangibles that are critical as well. Watch this 12 minute video where Jack speaks passionately about keeping employees excited and productive.
WE CAN HELP YOU PUT TOGETHER YOUR BUSINESS TRANSITION PLAN. BE ONE OF THE 20% WHO HAVE A PLAN AND CAN RETIRE WORRY FREE. CALL ME AT 303-777-0313 OR EMAIL ME AT CHUCK@CAMGROUP.COM