Number 3 in the series

I was caught between wanting to get this blog caught up and commenting on the Mr. Obamas first news conference yesterday (November 7). The fact is that I saw a different Mr. Obama. Perhaps for show, but I saw him as well organized, decisive and prepared. A reporter asked him about his security briefing the previous day and wanted to know what he might have learned. He told the reporter directly that he did learn somethings and no he would not discuss any of it. Period! When they asked him about an economic stimulus package this year or next, he said he would like to see it this year but this country has only one President at a time and right now it is George Bush so it was in his court; and it is. In typical, liberal reporter style, they asked him about his input into who will be his Senatorial successor. He said it was not any of his business it was the Illinois Governors call. Right on man, keep it up!

Now for number 3 on preparing your successor in a small or family owned business. In number 3 in the earlier blog, I indicated that the heir apparent should would in all functions/departments within the company and be paid accordingly. They may be good at sales or accounting or productioon or other functions, but if they are going to manage when you leave, back off or retire, they need to appreciate the fact that it takes all the departments working together to get the job done. Probably the biggest thing to remember is that what you do to keep track of your business, your heir needs to do too. They may do it differently, but they will do it on some basis, or they should.

In my experience there are two major battles to deal with.
1. Sales people think that they are far and away the most important aspect to the business. To some extent they are. No sales, no business. However, if you had all the sales in the world and no accounting, no production/purchasing, etc., so what! It takes everyone. After saying all that, no one should ever run a company, in my opinion, with having "carried the bag" so to speak or, in other words, have ACTUAL selling experience. This is especially true if your sales people travel. Travelling and selling on the road is not the glamorous job everyone thinks it is. I know. I had over 200,000 miles in the air one year.
2. Accounting people tend to be "bean counters" and are viewed as disruptive to the business. The heir needs to understand a balance sheet and P&L aw well as the accounting people, in my view. I am not an accountant but I bet I understand and know the ins and outs of accounting better than most accountants. Not because of formal training necessarily, but because of EXPERIENCE. Proper accounting is of monumental importance. And, if you are large enough, the Sarbanes/Oxley Act requires controls and a CFO position and that is good.

So make them work in all departments. If they don't want to, they are not the heir apparent. They do not have to like it, but they have to do it.

What do you think?