“Like a lot of different processes, [] sometimes the benefits aren’t immediate… but, you know, you’ve seen it, and I’ve seen it… and [next level] management development plans can be cultural-shifting and can really add significant value to businesses.”
In succession and exit planning, business owners often face unique challenges related to grooming, growing, and strengthening their next level management. In this episode of Savvy & Sensible, David Jean, principal at Albin, Randall & Bennett (ARB), and Art Boulay, CEO of Strategic Talent Management (STM), discuss how next level management development plans can help business owners meet these challenges, while increasing their business’s value.
Most business problems or challenges are either process-oriented or people-oriented. Every business owner will face a handful of challenges as they create and implement a succession or exit plan for their business. While CPAs, financial advisors, and attorneys take care of many of the process-oriented issues, succession and exit planning problems can also be people-oriented, which is where talent management consultants can help.
Just as ARB uses industry experience, technical knowledge, and particular tests and standards to evaluate data and processes, such as finances and accounting systems, STM uses world-class assessment systems to do the same for people, particularly those in a management or a leadership role. STM’s system can measure 97 unique data points, which they use to help business owners and leadership teams clarify their culture, management style, communication style, and the things that make them unique. By combining the assessment with the firm’s experience, knowledge, and data from prior assessments, STM can accurately measure and even predict how somebody will do in a particular role in a particular firm, and, perhaps more importantly, the risk factors when you’re expecting to depend on that individual to lead the next generation of your firm, handle the exit, or whatever the challenge may be.
Buyers want to see a strong management team in place; it’s actually the number one driver of business value. Whether a business owner is going into a third-party sale, an internal transfer, an ESOP, or any other exit path, the depth and strength of management is really critical to enhance the business’s value. Like a lot of different processes, the benefits aren’t always immediate, but business owners shouldn’t sell next level management development plans short. The assessment works because it pinpoints exactly what the individuals (and therefore the team) are good at and where they need development. It removes the guesswork for business owners and leadership, so they can make logistical decisions and take the appropriate actions. David and Art have witnessed these plans in action, both from the process-side and the people-side, and can attest to their ability to add significant business value.
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Since no one person can be a specialist in all areas of succession and exit planning, business owners really need a collaborative team. As a CPA firm, ARB brings the technical knowledge and tax experience in the process-side of succession and exit planning. As talent management consultants, the team at STM specializes in the people-side of the equation. And, as a certified exit planner (CExP), David Jean helps business owners reach a successful exit by bringing together and leading a team that includes all of their professional advisors.
Reach out to Art Boulay to learn more about STM’s next level management assessments or discuss your talent management needs. And if you have questions or would like to discuss your succession and exit planning strategy, contact David Jean today.
