December 2019
Succession plans aren’t simply intended
to address positions held by older
employees. They are also intended to
address critical positions held by non-
retirement-aged key employees.
— Jim Bitterle • EDSI
Because of this, waiting on your succession plan
could be the worst thing you can do for the long-term
survival of your business. Succession plans should be
considered a living document that is worked on in
the present but regularly reviewed whenever
personnel or organizational structures change.
“If you wait to develop and implement a succession
plan you are severely limiting your odds of success,
often to no more than a strategy of hope,” said Maner’s
Theis. “You may need to hope your company can
replace key talents quickly or a potential buyer won’t
discount your value too much because decades of
talent exit the business when you do.”
Put another way, your plan will surely change
over time but, by continuously working on elements
of succession and having built-in flexibility, the
concentration of effort at any given time will be
reduced and the ability to manage it will increase
through experience.
Get Started
When creating a succession plan, remember, the
future of your business is at stake. Take the time to
do it right, place a level of priority to it and consult
the necessary attorneys, CPAs, financial advisors
and other key stakeholders.
“Having a strong team of advisors to assist with
tax and legal considerations are essential,” said
Theis. “No matter who is on the team, it is vital the
communication occurs regularly and begins well in
advance of the transition. By committing to the
transition process years in advance, each individual’s
development can increase over time and improve the
overall effectiveness of the entire process.”
MiMfg Magazine
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Guiding Questions for Succession Planning
What is needed to reach the company’s goals?
What are the skills, knowledge and experience the
company needs to flourish in the future?
Who should be identified to gain that knowledge
and how can we provide them the opportunities
necessary to get it?
How long do we have and what resources are needed?
Has the business adopted and implemented the
necessary processes and procedures that eventually
facilitate a smooth transition?
Does the business have the necessary management
level talent in place to be successful following a
transition to new stakeholders?
Does a transition to existing stakeholders make
sense or should the business look to transition to
an outside unrelated third party?
What is the priority of importance so scarce
resources are allocated appropriately?
Who is responsible for each element of the plan and
how will they communicate progress or setbacks?
Have a team of advisors been established and are
they in full communication on the plan?
For more information on developing a succession
plan that builds the best possible future for your
business, log into the MMA website at mimfg.org
to access the Industry and Associate Membership
Directories to contact MMA’s leading industry
and associate members.
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Brett Gerrish is MMA’s communications coordinator.
He may be reached at [email protected] or
517-487-8533.
Your Support is Critical
Contributing to the MMA-PAC is an investment in
Michigan’s future and one of the most affordable
and effective ways to support pro-manufacturing
legislators and candidates.
Donate at mimfg.org or contact Brianna Mills at
517-487-8523 or [email protected].
“Our ability to support pro-manufacturing
candidates is imperative as anti-
manufacturing voices are working
strategically against our industry.”
— Patrick Curry, MMA-PAC Chair
and President of Fullerton Tool
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