Years ago, my Operations Director asked me, “What happens to the company if suddenly you weren’t here??” To her point, things happen unexpectedly and succession planning isn’t just a corporate strategy. It’s a responsibility. And it extends far beyond the walls of business.
I know this not from theory – but from experience.
Twenty years ago, my husband Robert passed away suddenly. He left behind a wife, two daughters and a business – without a will or any type of succession plan in place. The business luckily had an experienced team but little to no written plans or documented processes in place. As a new widow and CEO, I found myself trying to unravel a business as well as a lifetime of financial information – I had no clear understanding of our finances, accounts or critical documents.
A few years ago, I lost my younger sister sadly and suddenly at the age of 59. She passed away without a will or blueprint to where she kept passwords, banking accounts or any other pertinent information that would have made pulling her estate together easier. What followed were multiple trips to Surrogate’s Court and a long legal process just to have me appointed as Administrator of her estate.
In the process, we discovered something many families learn too late: her beneficiary designations had never been updated. Her 90-year-old mother — living with dementia — was listed as the beneficiary of her 401(k). It turns out, failing to update accounts and beneficiary information is more common than most people realize.
And then there was my mother.
My mother had always been a strong woman and in the eyes of her children and grandchildren, would live forever. My mother did have lists and would tell us where her money was hidden; black blazer, 4th coat from the back, and left pocket. None of us expected dementia to come so quickly, we lost her last year……once again the detective – searching the file drawers and blazer pockets. All while navigating grief and responsibility.
So now I find myself having to have the talk with my daughters. I can already hear it – I’ll sound like Charlie Brown’s mother….wah wah wah or maybe not, let’s give them credit!!
For Business Owners: Your Company depends on you, and succession planning is essential for every small and mid-size business owner. Here’s some of my tips and suggestions to get started.
A few things to ask yourself:
- Who would run the company tomorrow if you couldn’t?
- Who has signing authority on accounts?
- Where are vendor agreements and contracts stored?
- Does anyone understand your key relationships?
- Who has access to key business passwords?
- Is there a written transition plan?
Your employees depend on stability of your leadership, and your customers depend on your reliability. A business without a continuity plan can unravel quickly…not because it isn’t strong but because knowledge lives in one person’s head. Remember, my husband who passed away…there were no plans, no processes in place which made things quite difficult for several years.
What I have done:
I created a document that I call
Cynthia A Myer Emergency Succession Planning Contact List/Business Continuity Plan. This document holds business and personal contacts information. The document is broken into sections.
- RMS Organizational Structure, listing all the key people on my team including cell phone numbers.
- Business/Personal; this list includes our Accountant, who I use for business and personal, Estate attorney as well as business attorney, Banker, IT support, etc.
- Cindy’s personal, which includes everything from my home and auto insurances to my Financial Advisor, also with contact details.
- Friends/Family, Includes my immediate family names and numbers. I also include my chosen friends as a business and personal power of attorney.
- I have a password protected platform that I house all of my passwords in, this is included in this document and opens the door to most of my accounts, etc.
- Very Important information to include in this document is your log on information for your computer and the password to your phone.
When my sister passed away, no one knew how to get into her phone. I did discover a log to her computer, but her phone and any messages that she would have gotten, or we could have saved, were never retrieved. Please share access to your phone with someone and save it somewhere.
Be Prepared:
I created a Personal Medical Document that lists all my doctor’s, pharmacy, Medicare specialists (yes I’ve graduated) and plans, prescriptions, etc. Again, when my mom began to decline a list of her doctors and prescriptions would have been very helpful.
Be Organized:
One stop shop for all important documents. I have learned through my experiences the importance of keeping one to two “important drawers”. Your will, clear list of bank accounts, financial institutions, insurance policies, birth certificates, healthcare directives and a trusted person/s who know where everything is.
Final Thought and Recap:
- I created a formal business succession and continuity plan
- I documented processes and leadership responsibilities
- RMS does have a Process Manual in place
- I organized a comprehensive file of financial accounts, key documents and key contacts
- I assembled medical information – doctors, prescriptions all in a one pager
- Secured passwords and digital access
Do not wait for a crisis to wish you had prepared. Preparation is not just paperwork. It’s a conversation. It’s sitting down with your team and saying, “Here’s the Plan”. It’s sitting down with your family and saying “Here’s where everything is”.
- Be Proactive
- Be Transparent
- Be Intentional
by Cynthia Myer, President/Owner of Ridgewood Moving Services
