It is not only politicians, many of the channel honcho are also putting family succession planning in place
Succession planning – the preparation to replace one leader with another – is one of the most difficult challenges associations face in this era of organizational management. Few events in the life of an association are as critical, visible, or stressful as when the leader leaves. The eyes of every member, employee, customer, supplier, and stakeholder are focused on the outgoing executive director or CEO. How such an exit is managed reveals the character and effectiveness of that leader and association.
In the current economic climate, CEO turnover can cause even greater tensions for both internal and external stakeholders–especially if some of them are blaming the existing boss for leading the company down the wrong path.
It is difficult because transitions historically have not been done well. When there’s an internal succession, too often the outgoing CEO has had the largest–or only–influence on the process. He (or she) has too often made one of two mistakes, either choosing someone in his own likeness when what the company really needed was someone different, or choosing someone of lesser stature to preserve his own legacy. When a board has been able wrest control of the succession from the CEO, it too often has instantly gone outside to recruit someone from another company. That is often an overcorrection. Very able candidates may exist inside and they may present much less of a risk than an outsider.
Talking about on the same, Dushyant Mehta, Director Mediaman Infotech, shared, “When I was 21 years old I planned that at the age of 50, I will hand-over my charge to my son Digant. And now I am more then 50, I have already given charge of my business to my son 3 years back. Digant is working with his own company in IT as a director”.
Talking about his expectation from his son as an entrepreneur Dushyant said, “I always think that business should not be remaining like just a business, it should be highly ethical. Term relation and value should be there always. I have never taught basics of handling the business to my son, he has done his management degree from Mumbai and then he went for IIM Ahemdabad for higher studies. After involving in my business, I should appreciate that he has doubled the size of the business. I am very happy what I have expected from him”.
If we talk about the competition and trends, youngsters look forward to follow their own dreams and passion. In India, succession planning is something about imposing dreams and desires to follow family business on shoulders of their next generation.
“After my studies, I was confused. Should I study further, should I go for the job and should I start my own business? After exploring lots of things, meeting with senior officials of Transcend in Japan and get motivated I thought to follow my family business and take it to new heights” Digant Mehta, Director, Mediaman Infotech
K.L Lalani, director, Lalani Infotech shared his views “Succession planning is like turning point for an organization. It is a time when you are handing over your business to other hand. So it is very hard to make a decision and give your business responsibility to other person. After me, my son Umang Lalani will be handling my business independently and will be responsible for finance. As an entrepreneur, I think 3 qualities like Honesty, Hardworking and Intelligence should be present in a person”.
Through succession planning process, an enterpregnioure also retain superior employees because they appreciate the time, attention, and development that an employer is investing in them.
Employees are motivated and engaged when they can see a career path for their continued growth and development. To effectively do succession planning in your organization, it is must to identify the organization’s long term goals.
“While succession planning, we should choose the right person for the right post and place in an organization. We should not differentiate between your family member and of employees in an organization. We have to just think about the business and its future”, Lalani added.
Over the years, organizations have changed their approach to succession planning. What used to be a rigid, confidential process of hand-picking executives to be company successors is now becoming a more fluid, transparent practice that identifies high-potential leaders and incorporates development programs preparing them for top positions.
“An entrepreneur, who has to decide who will own and run the business, he also has to identify the leaders, but while doing it he needs to pick those people who have the caliber to compete in the industry. My son Ronil Mehta has done his Engineering from Mumbai and after completing his studies he was always focused towards the business. After analyzing his dedication, passion and new vision for business I have decided to go for succession planning. He is doing great job for our organization” said, Jiten Mehta, Director, Magnamious Systems.
Starting a business is a big achievement for many entrepreneurs, but maintaining one is the larger challenge. There are many standard challenges that every business whether they are large or small. These include things like hiring the right people, building a brand and so on.
Ronil Mehta said, “I am IT lover. I always wanted to work as IT professionals. After completing my studies, I have decided to work hard for our company. My father was always there for any challenges. He motivated me and I have learnt a lot to understand the business. Now I am focused on expansion, dealing with new business opportunity and building relationship with new clients.
“Expansion in any business is must and a compulsory strategy to take it to higher levels. And I think passing on business to our new generation can make it again young and refreshing and our N generation can run business with newer ideas and ongoing trends” stated, Virendra Phutela, Director, Phutela Computer Kingdom.
Virendra son, Manik Phutela has completed his Bachelors in Technology in Computer science and pursuing special course on Cyber Security from Mumbai. Manik has been preparing himself to take charge of his family business and make it more successful by adding more services and solutions to their business.
An effective succession plan can guide a business owner, creating a roadmap for success. It can also help owners attract and motivate successful employees. When owners commit for creating and implementing effective succession plans that embrace comprehensive programs for transferring management responsibility and equity ownership, they can experience the rewards of creating lasting legacies for their businesses. Moreover, in emergency situations, an effective succession plan can literally save the company’s life.