The value of a business will increase when the culture of the business, from the top down, is to ‘Replace Yourself’.
If you want to receive maximum value on the sale of your business, you have to be able to walk away from your business (with $ check in hand), with the brand, vision, people, systems and processes, customer relations and intellectual property still contained within the business you have left. The same concept of replacing yourself is also true for the employees of your business. Their careers cannot advance unless there is someone to take their place. I have seen many businesses where there is a key member of staff, with tremendous skills, hoarding their knowledge. This behaviour leads to a blockage where they can’t progress within the business and a certain arm of the business may stagnate. It also creates a hole if the employee suddenly leaves. Developing managers and leaders in your business is perhaps the most important step in creating a healthy, sustainable business and one that you can leave without creating a vacuum. It is what separates the good companies from the great. And in a bad economy, it can mean the difference between perishing and thriving. If you and your management team are not actively trying to replace themselves, your business cannot grow.
AS A BUSINESS OWNER OR LEADER, WHAT CAN YOU DO?
Measure and reward managers on their ability to develop their subordinates and your staff. Put in place a succession planning program to consistently assess and monitor the bench strength of your key executive positions that are vital to the health of the business. Create ongoing training programs that develop leadership skills across various levels of the organization. This could include a mentoring program, formal education, training courses and coaching. If your people are not growing, it is usually because of one of two things: either you are not personally growing yourself, or you are failing to help your people learn the skills necessary for them to move on to the next level. As you look at your business, ask yourself: Am I learning and growing as a leader myself? Do I have processes in place to develop my leaders of the future? Are there people in my organization who are creating obstacles for others?
To increase the value of your business – Replace Yourself!