September 15, 2024 by Mike Manazir – (4-5 minutes)

The Brick Chronicles

At Baxter’s Bricks, Sarah Thompson is no stranger to challenges. But when her mentor, Jason, suggested she join a Vistage Group—a peer advisory group for CEOs—she wasn’t sure what to expect. “Sarah,” Jason said with his usual gravitas, “if you’re serious about taking Baxter’s Bricks to the next level, you need to surround yourself with people who’ve been where you’re going. Vistage will give you that.”

Sarah hesitated, but she trusted Jason’s advice. So, one Tuesday morning, she found herself in an all-day Vistage session, surrounded by CEOs and business owners of multi-million-dollar companies. The room buzzed with energy as the group prepared for the day’s focus: business succession planning.

The session kicked off with a talk from a succession expert who wasted no time getting to the point. “Succession planning isn’t just about finding a replacement,” he said, pacing the room. “It’s about ensuring your legacy endures. It’s about the continuity of values, culture, and success. If you fail to plan, you’re planning to fail.”

Sarah glanced around the room, noting the mixture of determination and unease on the faces of her peers. It was clear this was a topic that hit home. After the presentation, the group transitioned to an “issue processing” session. The focus shifted to one of the members, John Matthews, a mid-50s owner of a successful manufacturing company.

The first step of the process was for John to brief the group on his issue. John’s issue was one that was shared by many: “My kids aren’t interested in the business. They have their own careers, and I respect that. But I’m nearing retirement, and I want to ensure the business I’ve built doesn’t fall apart after I step down. I need a succession plan, but I don’t know where to start.”

The room fell silent, the weight of John’s words hanging in the air. Sarah could sense the tension—this was no small problem.

The next step in the process is to ask clarifying questions: Lisa, a seasoned no-nonsense CEO asked, “John, I’m curious—have you identified any key employees who have the leadership chops to step up? It sounds like you’ve built a strong team, but is there anyone who stands out as a potential successor?” Each member chimed in with a thoughtful question – but no recommendations. Only thoughtful questions were allowed to get clarity on John’s issue.

The final step of issue processing is to provide recommendations. Each member of the group was given a 4×6 index card on which he or she wrote out their recommendations for John. They also wrote their name and phone number so John could follow up if needed. Once the writing was done, the Vistage Chairman facilitated the delivery of recommendations. Each member gave their verbal recommendation to John, and then gave him their index card where it was written down. This allowed John to focus on what each was saying without having to take notes.

Lisa, spoke up. “John, you’re not alone. But you’ve got to stop seeing this as a family obligation. Think about what’s best for the company. Have you considered grooming a key employee or bringing in an outside leader?”

John sighed. “I’ve thought about it, but it’s hard to let go. This business is like a child to me.”

Rick, another member, leaned forward with a grin. “John, we get it. But holding on too tight might choke the business. Have you considered setting up an advisory board to oversee the transition? It might give you the peace of mind you need.”

The expert chimed in. “Rick’s right. An advisory board can help maintain continuity and ensure the incoming leader aligns with your vision. But you also need a clear timeline and criteria for selecting your successor. And John, you’ve got to start mentoring this person now.”

The group spent the next hour diving deep into John’s situation, offering insights and support. The humor lightened the mood at times, but the seriousness of the situation was never lost. By the end, John left with a solid plan to identify a key employee with leadership potential, set up an advisory board, and start a mentorship program immediately.

When Sarah returned to Baxter Bricks, she couldn’t stop thinking about the session. The lessons were clear, and she was determined to start succession planning early. After discussing it with her key advisors, they decided to implement a similar approach at Baxter’s Bricks. They identified potential leaders within the company and began developing a succession framework that included mentorship, leadership training, and, of course, an advisory board to oversee the process.

Months later, the company was running smoother than ever, with clear lines of leadership and a roadmap for the future. Sarah felt confident knowing that Baxter’s Bricks was prepared for whatever the future held. And as for John? The last Sarah heard, his chosen successor was thriving, and John was finally able to enjoy a well-deserved retirement, knowing his legacy was in good hands.

“Succession is not about an endpoint, it’s about the next chapter.“

-Jessie Armstrong

Lead from your heart. Lead to Win.

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