JFP GROWTH TIPS FOR 2022 - NUMBER 10

By: John Fairley Senior Partner 5 days ago Categories: News

JFP GROWTH TIPS FOR 2022 - NUMBER 10

Business Structure – resilience, succession, saleability

In last weeks Tip No 9 Norrie used the tripod analogy to focus you in on the recruitment leg https://tinyurl.com/msz6z3ha

Let us now think about the management structure of your business, as part of this tripod, in terms of resilience, succession and saleability

Building in resilience helps insulate you from shocks either unforeseen or self inflicted. In the most extreme case a key person “falls under a bus”. All key individuals should have a clear operational template showing their responsibilities, reporting chain, incoming and outgoing reports e.g. specific KPIs. This should be a simple and concise document that allows the management team to quickly allocate all key functions to others, even on an interim basis, to reduce any negative impact on the business. This should be reviewed 6 monthly to update where necessary

If has been mentioned in previous tips the business should work to empower its management team https://tinyurl.com/28ruvx2p. In an empowered environment putting into action the “individual resilience action plan” is much easier.

Succession is much used term and often too far down business priorities. It is essential to have an ongoing thinking process as part of your Board Meeting Agendas, to address this subject. It is a very difficult subject to actually implement. It can be activated by resignation, retirement, underperformance and most importantly where will the business be in 2-5 years time. It is very much a strategic issue and affects Saleability also. The business has to develop a clear view on its preferred structure to meet the growth plan or indeed a planned sale. As an example a business, with a long serving sales Director who is moving into retirement territory, needed to clarify it’s options. One option was to keep the Sales Director in an ambassadorial role (high level account manager remaining at Board level) to retain his skills and knowledge. In parallel a new Sales Director could be recruited who would be helped into the role. This could also bring fresh ideas and energy for a number of possible business development plans. It allows everyone a great deal of flexibility as the business continues to develop. As you can imagine this has taken some time to evolve. The lesson is to plan early and create your own options. Do not wait to have options forced on you

If you would like to discover what other gaps you may, or may not, have in your business, take our complimentary Business Energiser Scorecard – you will find it very revealing! https://tinyurl.com/ycyjy3hh

#BusinessStrategy #StrategicPlanning #Non Executive #BusinessGrowth #Implementation