Heraclitus, a Greek philosopher is recognized for his quote, “change is the only constant in life,” dating back to 500 B.C. Long before our current environment of what seems like constant chaos and change, it was known that no matter what, we can count on it like death and taxes, and change requires dealership owners to be proactive with succession planning strategies.
Change is inevitable as we navigate a new presidential administration. The chaos that has recently ensued is most likely to be a foreshadowing of the future. The outgoing president created an environment where the incoming cabinet will undoubtably enact change in potential historic proportions. Are you prepared? Not to be confused as a political writing, rather a call for dealership owners to focus on being proactive and prepared to be ahead of what new lawmakers may propose for changes that will have an impact on your business and personal finances.
Like a potential candidate running for president who is then elected, there is a lot of thought and planning around what the first four years will look like. In addition, there are no guarantees a second term are withstanding, so you have to plan for the time known to be in office. The change in presidential office directly correlates to the paradigm of succession planning in that you must stay engaged in developing a plan, and importantly, be very flexible. With the right strategic planning focused on succession; you are inherently creating a better ability to flex in the face of change.
Succession planning is a proactive effort that focuses on through the next generation of dealership owners and leaders. It’s really easy to think of it as something as simple as a transaction or sale. But succession planning takes into effect all factors of our Succession Matrix®. And developing a strategy starts with developing your goals. Once you have developed your goals you can start with a strategy. And there has been no better time than the present of 2021 with the election results to turn your strategy into a plan.
A factor of the succession planning matrix is strategic planning, and now is so important to use strategy to develop a plan. In strategic planning we think of the current strengths, weaknesses, opportunities, and threats to an organization that could impact the desired goal or future legacy. No president, party, or policy can derail someone committed to planning. While it can change rules, structures, and laws, proactive succession planning can work around any change that may come your way.
In the recent inauguration speech of the incoming president one key theme emerged. Unity. At the core of anything successful and fruitful is unity. With succession planning this is also a core foundation. Once a plan is developed, it is so important to have unity toward a common goal. Any party who has their own priorities in contrast to the overall goal will either slow down the process, stop it dead in its tracks, or hold everyone hostage to their whims. I have seen it happen, where everyone verbally agrees to the goal, but the self-serving priorities of one or two can derail even the best laid out plan. I have no problem with someone looking out for themselves, but when they are not honest about their individual priorities in contrast to the plan, it can really cause pain. A proactive engagement in consistently communicating with all parties who have a vested interest in the ongoing success of the organization will ensure you will be able to hear all those around you and decipher if they are working toward the stated plan or toward their own agenda.
One example I always like to share with my clients is that of John Boyd. Almost every time his name is mentioned I get a blank stare in response. John Boyd was a military strategist who develop the OODA cycle. He deployed a strategy that involved observing, orienting, deciding and acting and is a theory today that the US Military continues to use.
As we navigate into a new presidential term with understanding that change is inevitable, we also know that by setting proper goals and establishing flexible strategies, we can overcome almost anything that 2021 and beyond have to offer.
Being a part of his own family’s business, Champ Rawls has a unique insight into the difficulties, challenges, and triumphs families face when combining family and business. Champ has been officially associated with The Rawls Group since 2012, although it could be said he become a part of the team in 1984, when he was born into the family business. For more information visit www.seekingsuccession.com
