Pub. 1 2013 Issue 4

32 San Diego Dealer If you want tomaintain or strengthen your position in the marketplace in both the near and long term, then management succession planning should be one of your top strategic priorities. Consider the number of former leaders and colleagues who have transitioned to new organiza- tions in the last few years or who have mentioned their plans to retire or sell their businesses in the next few years. Then, it becomes clear that management succession is not just about the person at the top—it's an organization-wide effort that can help ensure the continued success of your business for years to come. When thinking about management succession, consider these five essential keys to success. DEVELOP A PLAN Any important business undertaking should be guided by a plan, and management succession is no exception, whether your dealership is a single point store, or a large group. Your strategic plan should address howmanagement succession fits into your overall approach to attracting, developing, and retaining key employees. Specifically, your plan should address items such as: • Why management succession is important to the future of the company • Who is included in the management succession program • What steps comprise the management succession process • When management succession will take place START EARLY If you wait to address management succession until you start thinking about retirement, then you've most likely waited too long. Management succession is a long-termprocess through which potential future leaders are developed at multiple levels and across departments and functions within your dealership. If yours is one of themany businesses that hasn't introduced a proactive succession planning program, you can jump-start the process by evaluat- ing your senior management teamand the next highest level of managers, assessing your training and development activities, and understanding your recruiting and retention track record. These assessments will provide much of the foundational information needed to design a management succession program that's tailored to your dealership. BUILD A BENCH It's risky to have only one succession option available. You should strive to develop multiple successor candidates for each key position. Dealers can learn a lot from the "high-potential programs" used by larger Stay On Course with Management Succession By Sid Tobiason, Partner, Moss Adams LLP and Mark Steranka, Director, Moss Adams Advisory Services W hen you think about the Automotive Industry forces shaping your organization today, chances are you’re also thinking about how you’ll compete in the future, especially given the pending wave of ownership transitions and executive retirements that have built up over the past dozen years as a result of two economic downturns.