Being The Bearer Of The News

You’ve finally decided to take the plunge – you’ve sold your business and have planned to exit. Congratulations. This is an exciting time in your life, full of new opportunities. But as excited and as busy as you may be with this new transition, don’t forget that you have one important hurdle left. How do you tell your employees that you are leaving your business? Unfortunately, this could turn into an awkward conversation that can potentially stir up a lot of emotions. Your employees may feel betrayed by your leaving, be fearful of the new owner, or even become worried about their job security. Their concerns are legitimate, and it is your job to take care of your company before you leave it.

As difficult as it may feel to have this conversation, it’s imperative to plan for it and do it well. The best exit conversations include a frank and honest conversation about why you are leaving, how and when you are leaving, the impact of the transition on them, and expresses your confidence in them and the future of the company under new ownership. Most employees will appreciate a transparent conversation and the fact that you are focused on the long term stability and growth of the business and have considered their key concerns.

It might be tempting to paint the picture you want them to believe, but it’s more important to be direct and to be honest. Don’t sugarcoat the tough parts. Don’t let your body language betray you – stay calm and keep eye contact. Being kind and honest will ease breaking the news.

Explain your choices and allow time and space for questions, discussion or even grieving. This could feel like a loss for your employees. Allow them time to work through that. Recognize that for you, this decision has been in process for some time, but for most of your employees, it is new news. They may initially feel angry, confused or worried. Remember that direct, honest and transparent doesn’t mean you need to share everything with them. Answering any questions they may have, either about you or the future of the business, will help to ease the inevitable transition. Knowledge is power, and the more your employees know the more comfortable they will be. That being said, your personal information and details of the sale may be confidential. If you get questions that are confidential, it’s ok to explain that the details of the sale are confidential and then share what you can to address their real concern or question.

Last but not least, do not forget to keep the focus on the future! Your employees and the company will continue without you. It is up to you whether or not they will thrive. Make it a point to tell them what you hope for the business in the future and brainstorm ways they can keep your legacy alive.

Leaving a business is never easy, and it is even harder if you love the business and deeply care for your employees. Even when the time is right, exiting is a significant change. Being honest and compassionate with your employees will give them the respect they deserve and will help ease the transition for all of you.

Time for a Change

As humans we are biologically and evolutionally wired to fear change, but change can be a positive thing, especially if you are not happy with your current situation. More often than not we stay put when we aren’t happy due to our need for stability. And while there is nothing wrong with stability, there is something wrong with doing something you don’t enjoy as you approach the latter part of your career. So how do you know when it is time to move on?

Being financially stable or gathering experience in order to further your career might be good reasons to keep working at a job that you don’t enjoy, but as you reach the end of your formal career, and your work stops serving your needs it may be time to move on. Here are a few signs to look for when you are rethinking your exit timing:

• Are you continuing to learn? If you are not being challenged or learning something new and useful most days, it could be time to find a new challenge or move on.
• Are you working at your optimal level? Your years of experience may afford you a lighter workload, but if you find yourself underperforming or getting distracted too easily you could be bored and ready to move on. Finding or creating something a bit more intellectually stimulating could be the answer to curing these particular blues.
• Do you feel unappreciated? Oftentimes we feel like we give and give and give but receive nothing in return. If you feel that your employees, your customers, your suppliers are not appreciative of what you provide, it’s either time to speak up or maybe you are getting jaded.
• Do you get frustrated more quickly with your executive team or key employees? Unfortunately your leaders can make or break your enjoyment. Getting past petty squabbles or a general dislike for someone can be difficult, but if your executive team members are the main stressors in your business, it could be time to move on. And there is no shame in that. Finding a meaningful and rewarding what’s next, where you fit in and feel valued is of the utmost importance. Just don’t forget to give others the benefit of the doubt.

You have the power to take charge and change your life for the better. You know when the time will be right to move on. Finding out what serves your purpose in life is extremely important, and finding an outlet for that passion is what will make you ultimately happy in both your career and your life.

Innovative Ways to Groom Your Successor(s)

You need to have peace of mind before you are going to turn over your business to someone else. Not every successor will be prepared for the job, and not every owner will do the work needed to prepare their successor. Your successor needs to be able to successfully lead the implementation of your strategic plan and directly or indirectly fill the gaps that arise when you are no longer active in the business. This gap analysis is crucial for every owner to do, even if the ramp down is years away. It will give you good insight as to what development planning your team will need. While your list may not be all encompassing, it will give any business and its successors a good start. Here are some ways to close the gaps.

Provide Powerful Experiences for Your C-Suite team

Experiences such as volunteer leadership positions, participating in roundtable discussions, and being a part of a strategic planning team will expose them to other ways of thinking, push them to step outside of their comfort zone, and expand their influence in the business community. A good friend of mine aspired to be the president of my Rotary club. When she was installed, she confided in me that she was terrified of speaking in public. Week 1 was tough for her. Week 2 was a tiny bit easier. By week 40 she was unscripted and putting everyone at ease.

Provide Learning Opportunities like ‘Reverse’ Training

We often think about getting trained in something we haven’t yet mastered, but instead, ask your leaders to train you, your leadership team, or a subset of your business — on something THEY need to learn and would be beneficial for others to learn too. When you have to train somebody else, you are forced to learn it better yourself. When I first was learning about P&L’s and balance sheets, I forced myself to do a small training event for a group of trusted advisors so I would learn more deeply. I had to be prepared not only to present the material, but I knew they would ask me challenging questions. I had to be ready for those too.

Other Learning Opportunities include being part of a pilot or SWAT team to take on a special, time limited project. Special projects usually provide cross-functional experience, demand fresh ways of problem solving, require relationship building with new team members and force the engagement of different skills.

Be an Intentional Role Model

Employees often thrive when they have an excellent boss and role model who will show them how things should be run, and explain the why behind it. I remember years ago when I worked in the packing department for Procter & Gamble’s Sure/Secret antiperspirant, my boss pulled me aside when he saw that we were dropping an occasional cap on the floor. Each cap only cost a penny and we had to throw them away if they hit the floor. What’s a penny every twenty minutes? Well, he sat down with me, did the math and that penny became thousands of dollars on a 180 cap per minute machine running 24/7/365. What a great learning experience.

Formal Training and Mentoring

Giving the successor a chance to attend specific classes, seminars, workshops and self study programs will give them a sturdy foundation upon which to grow their leadership skills. Encouraging them to find a mentor, will provide them with a guide for their development journey.

There are many other examples of ways to groom your successor that are effective AND get move the business ahead. Most are fairly inexpensive, require little time away from ‘the job’ and deliver broader benefits as other employees learn too. If you want to explore more, download our Growth & Development Planning Tools list. It has additional recommendations.

Leaving a business in the hands of someone you are not confident in is difficult, so investing in your C-Suite and beyond gives you a stronger business today and more choices on potential successors for tomorrow.

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