March 31, 2008 |
print-button

Nothing Succeeds Like Success(ion)

Steps to ensure smooth succession.

Visting with the leadership team at McC Inc. while getting background for this issue's cover story (see Pg. 8) opened my eyes to just how valuable a good succession plan can be for any sized company.

Nobody should have to experience the fast-track implementation of a plan like McC Inc. did after losing two top executives in a plane crash last June, but accidents do occur. As do retirements, changing jobs, buy-out packages, company sell-offs; well, you get the picture.

If you're unsure where or how to get the process rolling, fear not. There are plenty of financial advisors, attorneys and consultants who can get you started, or if you've already begun the process or have a plan in place, could help you fine-tune your approach.

In touring around the various sites dedicated to succession planning Googling does have its merits most sources agree on some basic tenets of succession planning, including:

Use a team approach: You'll want to tap into the expertise of your financial, legal and operations heads to create a well-rounded plan.

Incorporation: Corporate status ensures "perpetual existence" even in death and disability of the owner in addition to limiting liability.

Find a successor: You don't want a lengthy learn-as-you-go transition process so make a choice and train that person yourself. After all who would be better at grooming your successor than you.

Make a business will: Make sure your succession intentions are known in writing and include your succession plan and, if necessary, name your successor, too. Inquire about a "buy-sell agreement" as a way to protect your company's interest also.

Be transparent. Once you've created a succession plan be sure to talk it over with all affected parties (especially family members). Being left in the dark will destroy trustfulness and has ruined many a family.

Insure the plan: Having adequate liquidity to keep the business running in the event of a triggering event should not be a problem if you're properly insured.
You owe it to yourself to be serious about your succession planning, but more importantly you owe it to your employees and their families' futures, to be serious about it, too.

More Articles

Hola Havana

Hola Havana

May 17, 2015 | Editors Note | Elise Schafer

We’ve all seen the headlines across social media about the potential for Cuban Cigars to be legalized. That’s because in December 2014, President Obama said the U.S. would soon re-establish relations with Cuba nearly 55 years after the trade embargo was enacted

[Read More]
Brush Up on Rail Safety

Brush Up on Rail Safety

May 12, 2015 | From The Field |

Industrial facilities that use rail as a part of their operation move railcars by a variety of motive power types. No matter what type of motive power is used, applicable rail operating safety rules and procedures should be followed. Applying up-to-date rules and procedures to rail operations will enhance employee safety and facility efficiencies. 

[Read More]
Facility on the Go

Facility on the Go

May 07, 2015 | Focus On | Steven Kilger

Having automated technology running operations in facilities has been an industry standard in the feed industry for years, and the grain industry is rapidly catching up. The advantages of the technology are numerous and evolving. Automation improves equipment life expectancy, employee safety and productivity, facility efficiency and ultimately profitability.  

[Read More]
Feed & Grain Announces Photo Contest Winners

Feed & Grain Announces Photo Contest Winners

April 30, 2015 | | Elise Schafer

Feed & Grain is proud to announce the winners of its 2014 Harvest Photo Contest. Entries poured in from December 2014 until this February showcasing our readers’ ability to manage a record crop — some with limited access to rail or other shipping options. Congratulations to all the winners and honorable mentions! 

[Read More]
U.S. Invests in Key Rail and River Infrastructure
Photo by Union Pacific Railroad

U.S. Invests in Key Rail and River Infrastructure

April 27, 2015 | Cover Story | Elise Schafer

The year 2014 ended as a mixed bag on the transportation front. Historically poor railroad performance in the Northern Plains and record-high costs for railcars were detrimental to many grain shippers. But on the bright side, Congress’ passage of the Waterways Resources Reform and Development Act recognized the importance of maintaining vital waterways like the Mississippi River.

[Read More]