The Succession Planning bridge

The Succession Planning bridge

The Succession Planning bridge helps firms to facilitate the development of a Succession Plan. This process involves helping your client to identify objectives for their eventual exit from the business, succession options, the timeframe and the key people to be involved. They'll then define their goals for the next 12 months to begin preparing their business for their exit.

Important info
The longer a business has to prepare for succession, the b igger the opportunity to maximise the value of that business. Whether your client plans to exit in three years or 30 years, it's important to have the succession conversation and document clear intentions. A plan could also save other stakeholders and family members a lot of pain should an unexpected event occur.

To access the Succession Planning bridge, go to Navigation panel > Bridges > Succession Planning bridge.

Understanding the Succession Planning process

One of the things we often miss in succession planning is that it should be gradual and thoughtful, with lots of sharing of information and knowledge and perspective, so that it's almost a non-event when it happens. - Anne M Mulcahy

Succession Planning is not only about preparing the next generation but also ensuring the business can weather the unexpected. There's a lot of work to be done with the client to ensure they achieve the best succession outcome. 
  1. The Process Guide outlines best practice use of the content in the Succession Planning bridge; click the Download Process Guide button in the top right-hand corner to view this guide.

Note
Ensure you review the Process Guide prior to using the content in the bridge.

Marketing the Succession Planning service

There are many ways to actively market the Succession Planning service, including:
  1. Discussing your Succession Planning service as part of a Complimentary Client Review, Proactive Accounting Meeting or Annual Accounts Review Meeting. 
  2. Asking a client what their plans for succession are during a Business Planning session and discussing the importance of having a Succession Plan.
  3. Sending out relevant educational marketing content to your database to subtly position the value of Succession Planning.
    1. Go to Navigation panel > Marketing  > The Gap + BOMA  > The Gap + BOMA Content Library Catalogue to check out our education marketing content ready for you to send via BOMA
  4. Using the PowerPoint Template in the Delivery folder to host a seminar or webinar to generate interest in your Succession Planning service.

Important info
Use the content in Navigation panel > Bridges > Event Management bridge to support the delivery of a Succession Planning webinar using the PowerPoint Template, available in the Delivery folder.

Succession Planning proposals

There are three proposals in the Succession Planning bridge; one for the standalone service and two for a combined service offering of Succession Planning with Monthly or Quarterly Coaching. Only send a proposal for services you have gained conceptual agreement for.
  1. Consider the client's unique situation and use the checkboxes to select the objectives, measures of success and value to the client; add bespoke objectives, measures of success and points of value to reflect the client's individual needs
  2. If your client does not accept within seven days, call them to follow up
For more information, see our Using proposals article. 

Tip
Carefully read through the objectives,  measures of success and values to better understand the types of problems this service will help solve for your clients.

Delivering the Succession Planning service

Client outcomes

By attending a Succession Planning session, clients will:
  • Have strategic discussions around ‘what if’ scenarios
  • Determine a common vision for owners, team members, and successors
  • Establish the succession challenges and opportunities in their business
  • Have an impartial sounding board to help them in the decision-making process
  • Clarify their succession process, defining tasks and actions to maximise their outcomes
  • Identify and prioritise key goals and milestones
  • Develop a tool to communicate their Succession Plan with family and other key stakeholders
  • Access your collective wisdom, systems, products and services

Service duration

A Succession Planning session should take four hours. If delivering the session virtually, consider splitting the session into two two-hour sessions. The Delivery Notes available in Navigation panel > Bridges > Succession Planning > Delivery contains recommended timings for each agenda item.

The service

You will facilitate a structured session to develop your client's Su ccession Plan;  objectives, clear goals and milestones and a timeframe with respect to their eventual exit from the business.  

Prior to the session, you will provide all attendees with pre-work to complete, ensuring that any issues that need to be discussed are identified and you can prepare accordingly.

Please note that:
  1. If the business has multiple owners, each owner should fill out the pre-work and attend the session
  2. If the successor is already lined up, they should not attend this session, but it may be appropriate for them to attend another meeting at a later date

Important info
We recommend enforcing a 'no pre-work, no meeting' policy. Politely discuss the benefit of pre-work and reschedule the meeting so it does not become one of discovery.

Click here for more information about common content found in the Gap bridges and how they relate to each step in the Succession Planning process. See the Succession Planning Process Guide for detailed information about the Succession Planning content.

Key content in the Delivery folder includes:
  1. Succession Planning Wealth Creation Plan: an Excel template to send to clients to use to create a Wealth Creation Plan prior to the session to establish where they want to be in five years.
  2. Succession Planning PowerPoint Template: an educational piece demonstrating the importance and process of Succession Planning, to be used at the beginning of the Succession Planning session or at a webinar or seminar.
  3. Succession Planning Tactics Guide: a guide to support you as you deliver the Succession Planning service to your clients to help ensure clients achieve their succession objectives. Do not send this document to your clients.
  4. Guide to Succession Planning: a pared-back and less technical version of the Tactics Guide to send to your clients, designed to reaffirm the knowledge you've imparted during the Succession Planning session and paint the picture for the relevant project work or tasks they need to complete prior to exiting their business.

Note
The Wealth Creation Plan is already attached to the Confirmation and Pre-work Email. 

Follow up services

It's likely the client will need further support to ensure they achieve the goals set in their Succession Plan. The closer they are to their planned succession date, the more support they'll need. Review steps 9-27 in the Tactics Guide and identify which ones are relevant to the client. Discuss the client's options, prioritise the support they need, and gain conceptual agreement to send a proposal for the additional services.

Tip
Coaching your clients to support the implementation of their Succession Plan will fast track their results and ensure they achieve a better outcome. Position coaching in this way helps to sell the value.
Important info
If the client doesn't undertake coaching or follow up services, schedule a reminder to check in with them after 12 months to see how they're going with their Succession Plan.

Do you recommend more regular contact than just the annual review of the Succession Plan?

Absolutely.  Depending on your client's situation there is likely to be a lot of follow on work. For example, the Succession Planning Tactics Guide identifies 27 potential steps, of which only the first eight are covered in the planning session. It's important to gain conceptual agreement from your client during the planning session for the additional work to be done and the price for that work.  Succession Planning is a marathon, not a sprint.

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