Succession Planning - Growing the Next Cucumber Crop
21/12/2017
I’m going to be replaced as CEO.
Rest assured this is not a coup, though. I couldn’t be happier that my technology services company Cucumber is finally launching its hunt for a new Chief Executive Officer.
Our recruitment campaign, which begins in earnest in January, aims to find someone smart with the drive and foresight to lead us into the future. Basically we want Elon Musk without the Mars fixation.
We’ve collectively spent a year mulling over a Cucumber succession plan. When should I step aside as Managing Director? Shouldn’t we promote one of our extremely capable management team members? If business is growing, why do anything at all?
In the end, it comes down to ambition. We want a step change, accelerated growth, leveraging the depth of experience we have gained over the years whilst transitioning the business to one that is well known in our target markets. We’re not hiring from within the company because we all want someone else with different skillsets and experience. Not me and not them, but a person with a fresh perspective, a big audacious vision and commensurate skills to transform our already great company into an amazing one.
What About Me?
So what about me? Am I afraid to release the reigns? Heck no. Succession planning has been on my radar for a few years.
In my case, the very humble web development business I started 12 + years ago - two desks, a tiny office and three staff - has blossomed into a multifaceted technology company that employs more than 32 staff. In that time, I’ve developed too. From chief generalist and coffee maker to managing director, with a shareholding management team and a governing board to answer to.
For the past few years I have been talking and thinking about succession planning. My partner Dave has created, built, bought and sold plenty of businesses over the years and he was the one who encouraged me to start planning my own exit strategy. After all, I’m in an industry that embraces innovation and change. I know I can’t do what I’m doing forever and nor should I, so I want to retain a seat on the board, continue as an advisor and work on the business rather than in the business. I’m really good at some things and well aware of my shortcomings, which is why I’ve made a point of hiring clever people who complement my skillset.
Not Reinventing the Wheel
I’m not alone though. I’m also seeing friends and colleagues and other businesses struggle with the best way to relinquish varying degrees of control over our business babies, these companies we conceived, nurtured and battled for, in and on over the years. In a recent report by Xero, 8% of NZ business owners plan to retire within the next year – which is a huge number considering there are over 90,000 + businesses in NZ.
I’ve made some good progress on the succession planning front. In recent years, I’ve managed to divvy up shares with key staff, develop a great management team, establish an advisory board and value the company but I’ve learned the hard way. There’s certainly no guidebook or handy manual for succession planning. It’s taken me a few years to get to this stage, some mistakes, lots of door knocking and quizzing of strangers and consultants to work out how to partially extricate myself from this business I love.
While I don’t know exactly what lies ahead for me, I’d very much like to share what I know including some of my mistakes and save others from going through the pain and reinventing the wheel.
Hopefully, I’ll also be able to boast about how to find a fabulous CEO.
So, watch this space and if you know Elon or a person somewhat like him, feel free to share this post or click here and mention our CEO search.
Written by Jodie Tipping
