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Help Your Company Make the Transition
Create a Business Succession Plan

Croghan Colonial Bank's Wealth Management Division offers estate planning and private banking services that can help assure that both you and your company enjoy a successful transition. Call 1‑888‑276‑4426.

Former GE CEO Jack Welch spent 20 years at the helm of one of the world's largest corporations. Under Welch's tenure, GE's profits soared as it expanded its reach and increased its market capitalization from $13 billion to over $500 billion.* When Welch announced his retirement in 2001, GE was thrust into the daunting task of finding his successor.

Whether at a company with global reach or a small start-up firm, many business owners feel a strong emotional bond to the business, as if it were one of their own children. Naturally, they want to ensure that the company will be in good hands when they retire or move on.

You should treat creating your succession plan like any other business decision. The decision needs to be calculated, concise and obvious. Often owners will deny their need to retire and forgo passing the torch, for reasons that the Small Business Administration says can be primarily psychological.* Frankly, nobody likes to think about their own mortality. Others think they can work a lot longer than they should, which doesn't allow the company to pursue new ventures and ways of increasing profitability that come with a fresh start.

Ultimately, GE chose seasoned industry veteran Jeff Immelt to succeed Welch. Immelt has been faced with keeping investors happy while painstakingly changing the outlook of his company.

Any company needs time to adjust to the new leader's style, ideas and managerial capabilities. This is a transition that can't be accomplished in one day.

One of the best ways to improve your legacy is to ensure that the company thrives – and grows – after you are no longer part of the organization, but that it still subscribes to similar values and missions.

You should begin succession planning while you are still healthy. Waiting until after age 65 could prohibit you from taking part in many of the jobs involved in succession planning, such as mentoring and invigorating the successor.

While most companies don't have to find another "Manager of the Century," as Fortune described Jack Welch, they still must be meticulous in understanding the company's future direction and capabilities. Croghan Colonial Bank's Wealth Management Division can help you establish a plan and stick to it, ensuring your organization's continued success and innovation in the years to come. Contact us today at 1-888-276-4426 for more information.

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