By 1963, George Halas had been the owner of the Chicago Bears for 43 years. It was impossible for him to have been an owner for longer. He founded the team (and the league in which they played, the NFL) in 1920 and served as their head coach for the majority of those four decades. That year saw the Bears win their eighth championship — Halas’ sixth as head coach.
But the 68-year-old Halas was getting on in age. He knew he couldn’t operate at a championship level for much longer, and he didn’t want to wait to step down until it was too late.
Enter George Halas, Jr., son of Papa Bear, known best as “Mugs.” Mugs joined the organization that year, serving as president and, until 1974, general manager. It was widely understood that he was next in line to own the team and was trained in all the ins-and-outs. The man soaked up knowledge: other general managers said Mugs was one of, if not the, smartest executives in the league. He was primed to take the Bears into the post-George Halas era. Everything was set up; the future was certain.
Until it wasn’t.
Mugs died of a sudden heart attack in December 1979. No plans had been drafted for this contingency; it was just assumed that Mugs would be the guy. Without a formal succession plan in place, years of litigation and legal battles followed instead, with no clear ownership (or leadership) emerging.
Now, does your business have a plan? Or does it have an assumption?
Why Create a Succession Plan?
Succession plans are essential for firms trying to build enterprise value and long-term continuity. Far from an assumption about how your business will proceed, a succession plan provides clear steps and benchmarks for the future. They set your company up for smooth transitions when leaders resign or accept a promotion.
If you’re focused on attracting and cultivating talent, executing your goals, and being the best company you can be, you need to put a succession plan in place.
The Benefits of Your Succession Plan
Maintain Continuity
Alexander the Great wept, supposedly because he had no more worlds to conquer. Really, he left behind a weak line of succession that broke into infighting almost immediately after his death. But there’s no reason for you to share his tears.
Identifying a successor early allows you to vet their competency and comfort in the role. Do they have the goods to carry on the company, or will they fall like a house of cards the first time they have to make a decision?
Further still, a well-thought-out plan can significantly impact employee morale and position your team to skillfully handle future business challenges. If your team feels like they’re part of a line and not just another cog in a new machine, they’ll solve problems in the mold of the company culture.
Limit Legal Headaches
If you’ve ever had an elderly relative die without a will, you know the frustrations that come with probate. A business is hardly different. Without a plan in place, sorting company assets and responsibilities can take up valuable time and resources.
And that’s if everyone’s on the same page. No line of leadership could mean everyone pointing to handshake deals and cocktail napkin contracts, leaving the company to suffer as a result.
Build Value (and Keep It)
In establishing a succession plan, you’re setting up your business for success years down the road. You’re protecting the jobs of your coworkers and the retirements of your clients.
By developing and training leadership from within, you keep what works with the company while still contributing a fresh perspective from those who can improve it. They’ve already built the interpersonal relationships within the company on which leadership is built. You can’t copy that with an outsider.
A succession plan outlines what’s next for your practice. But what’s next for you is subscribing to the Impact YouTube channel, where you’ll find plenty of Impact Conversations and other videos to make your practice one for the ages.
