Women Should Have Louder Voices In Succession Planning
Succession planning can be a touchy subject; one that plans towards an inevitable end of your involvement within your business (or, your death within your family unit) — but one that is necessary for securing the future success of your business or family. When it comes to businesses (especially those in a traditionally male-dominated industry) women can be shunned from conversation or consideration when it comes to succession planning.
If the Queensland Government recognises gender equality as an important enough issue to implement the Queensland's women's strategy to strengthen and support the rights of women and girls in Queensland, isn't it about time that women had a louder voice in devising a succession plan strategy?
We explore how gendered conversations could be creating roadblocks in your own succession planning process.
The importance of succession planning
The term 'succession planning' can be applied to not only business but your family as well. Regardless of where it's applied, succession planning is an essential component to ensuring that your business, company or family can continue its future success should a change occur quickly, or suddenly.
Many people tie succession planning with large companies and organisations, however, it is also as pertinent in a business that's sentimental, intergenerational, or simply one that you would like to see continue beyond your years — such as a family farm. For many farming families, they intend to pass down their business operations to the next generation which is why they often build a robust succession plan into their business strategy.
How women can be more involved in the succession planning process
When it comes to planning the succession of a family, women are intrinsically involved in succession planning discussions. As succession planners, we often see that women underpin the unity and cohesion of families, and are what drives family legacy, as in the example we gave above about the farming industry. Unfortunately, women are often not given the same consideration when it comes to succession planning.
By no means is there any insinuation that this occurs due to inherently malevolent motives — after all, it was only 25 years ago that women were able to put 'farmer' as their occupation on the Census! However, with the rapidly evolving society we find ourselves in, more and more women identify their ability to fill critical roles and responsibilities when it comes to carrying on the family farm.
Take, for example, Charlotte Wundersitz, who grew up on a grain-producing farm in South Australia. Charlotte details her experience in becoming interested in continuing her family's business past her parent's retirement, and how growing up, she encountered innocent, but very heavily gendered questions and comments about her future. She was often asked if her male siblings would become farmers and it was suggested to her that she would need to marry a farmer if she were to successfully manage the family farm in years to come.
Charlotte's experience highlights how traditionally-gendered questions may automatically prevent women from considering themselves in succession planning. Charlotte pointed to the importance of actively ensuring that family farming businesses, agriculture in general, or simply any other 'traditionally male-dominated businesses' aim for equal opportunity and inclusion throughout their conversations.
Now studying law and agriculture at University, Charlotte is not only ambitious and excited about her career goals but suitably prepared to take on a management position when her parents decide to step out of their current roles.
As locals, we know that the Sunshine Coast's rich and diverse farming background means that Charlotte's story would not be unique, which is why as a successful succession law firm, we are proud to support our local farming families and other local businesses to continue their legacy for years to come.
Important considerations for your succession planning strategy
For business owners who have invested large amounts of money, time and love into their businesses, many desire to keep their business in the family once they step away, retire or pass away — the preparation of a succession plan, and the process of succession planning, therefore, needs to heed this significance.
Whether you're looking to keep the business in the family or simply continue your organization once you step away, two critical areas can kick start the succession planning process.
1 . Legal or financial issues
Within succession planning, there can be several financial or legal issues to consider.
For example:
Are you going to gift your company to your successor, or are you going to sell it?
How are you going to value your business, or your share of the business moving forward?
What do the tax and financial implications of succession look like for your business?
Will you be deriving any income from the business once you leave?
Do your succession plans factor in any insurance policies?
Then, of course, you encounter some legal implications when it comes to succession planning:
What legal documents are required to dictate the terms of your succession plan?
Will there be requirements to transfer licences, permits, or registrations?
And perhaps, most importantly, what legal structures will change once you leave the business?
The complexities of succession planning are many and varied. The best-laid plans can go awry unless they are legally valid. Many professional services come with managing a business, and succession lawyers make up part of the pack.
2 . Management and Ownership
Look at how the ownership and management of your company, business or organisation will be structured once you transition or exit your business.
Who is going to be your potential successor?
You might look to a family member, a business partner, or an outsider buyer to assume the role. Understandably, it's crucial that they too are willing and able to take on the role and possess the correct leadership skills to be a key leader.
Identifying vulnerable, critical, or key positions in your business
Prioritising positions comes down to criticality and vulnerability. If circumstances arise where an employee in one of the positions abruptly exits, it leaves you open to knowledge loss. To prepare your business for succession, you'll also need to identify critical positions to gain an understanding of how losing key employees in one of those positions will affect the vision and mission of your organisation. For example, you may identify key employees who hold institutional knowledge that's critical to the continuation of your business.
Start building a pipeline of talent
Your talent pool will already have either promising employees or high potential employees swimming amongst it. These internal employees and any other promising employees can be the key to your succession planning.
Replacement planning ensures that you can minimise the ripple effect of a sudden departure from certain jobs within your company.
Engage Queensland-based succession planners to get your succession plan laid out
Change is inescapable, but not always predictable — a succession plan plays the most important role in mapping out how to manage the inevitable changes that come with running a business, or changes that life throws at you.
Succession planning ensures that you can define your vision of a secure future for your business, and your family — which is why you should ensure that you have professional succession planners on your side when it comes to navigating succession law.
At Bradley & Bray, our team of Sunshine Coast-based succession lawyers can assist with both your personal or family succession matters, and that of your business. We would love to talk with you about how to define your vision of future success for your family or business; reach out to us, today.
This article is general in nature and does not constitute legal advice. If you require legal advice in relation to your personal circumstances, you must formally engage our firm, or another firm to provide legal advice in relation to your matter. Bradley & Bray lawyers takes no responsibility for any use of the information provided in this article.
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