BY ELAINE J. ERVIN & DAN GAFFNEY
THE CFM’S ROLE IN BUSINESS
But, what happens when key leaders retire? Or when an owner seeks an exit strategy that involves selling all or part of his
or her interest in the company?
In these common scenarios, how can a
contractor maintain its competitiveness
and culture – its very existence – in the
absence of those who established these
things in the first place? By creating a well-defined succession plan.
A WELL-DEFINED PLAN
Whether your company is large or small,
privately held or family owned, it likely
won’t attain longevity without a strategy
in place to identify, develop, and groom the
next generation of leaders and owners.
The long-term success of any company depends on the
quality of its leaders.
Accordingly, contractors spend a significant amount of
time and resources assembling management teams of
smart, capable people who can help drive profitability,
fuel the right corporate culture, and set an example for
the rest of the company – all with the goal of increasing
their own chances of prosperity.
Succession planning is complex and reflects the intricacies of a company. The
sooner you begin to formulate a plan, the
more likely it will help achieve your company’s objectives and preserve its vitality.
It’s also important to remember that succession planning isn’t something that only
affects the owners. Formulating the right
plan is imperative for the entire company.
And, it’s an area where the CFM plays a
YOUR PIVOTAL ROLE
A CFM’s expertise puts him or her in a
prime position to help assess ownership
transition and exit scenarios. For example, a CFM will help determine if a transition should take place in two years or
20. Or, if an owner should aim to sell his