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Fail to plan = Plan to fail. The importance of succession planning
In the next 10 years, the numbers of accountants that are selling their business are more likely to exceed the available buyers. Which would increase the need for strategic series planning within the line of work.
This situation occurs from the main ownership of accounting practices by baby-boomers, plus the changing work of accounting professionals and shifting social trends.
Many of the accounting firms owners are over the age of 50. A higher number of newcomers will come onto the market over the next 10 years.
The younger generation of accountant professionals will be more focus on achieving a spot in the firm. This doesn't mean that they will want to be part of the ownership.
A series planning is more important than ever, especially if you represent a large part of the firm. If the planning is not managed well, it could force many people to work well past their retirement age. Most owners are more concerned about their employees and loyal clients and want to make sure they are in good hands after they retired.
Although many accounting firms are different ranging from different people, personalities, clients and business cultures, there is no easy template that can create a successful plan. Plan early, its not just about money, and think win-win are a few key principles that if thoughtfully considered well in advance will help ensure a smoother ownership transition and help protect the businesss inherent value.
In conclusion, there is no single solution to every situation for business owners to address the issue of planning and carefully examining their options. Doing this will open up strategies for retaining key staff, for better balancing work and lifestyle interests, and for maximizing the value of the work that has gone into developing the business.
This article reflects to Why do some Planning Sessions Fail? No Plan. Fail to plan = Plan to fail. The importance of succession planning reflects on how not to fail and how a succession plan is important to make a business successfully.
I mention in an earlier discussion on how my team plan in advanced to help me input data for paid-in and paid-outs. Since I started with this assignment, it took me all day and some overtime to complete my work. I was also on a time deadline, so I had to get this work done. The manager and my supervisor set up a plan to help me get my work done and turned in on time. The day before this assignment, I researched needed information and then add it to my data. This plan worked out for my team and me.
The only recommendation I can suggest because what they did before I joined the team seemed to be working out, is to set more meetings so we can plan on new things to find out our strengths, weakness and opportunities and threats on old assignments to improve them.
McMillan, Cameron (00-00) Fail to Plan = Plan to Fail. The importance of Succession Planning Retrieved on August 16, 00, from http//adviser.macquarie.com.au/au/business/accountant/articles_research/succession_planning_00.htm/
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