Mary Barra or Miley Cyrus

For all those skeptics who have always complained of the glass ceiling, and that they cannot get to their goals because of XYZ, there was yet another piece of evidence yesterday, Tuesday Dec. 10^th.  Mary Barra was named GM CEO the successor of CEO Dan Akerson.  The first female CEO in GM history, she is scheduled to start her new role in January this coming year.  Mary Barra has worked at GM for 33 years and has experience with positions in manufacturing, engineering and senior management. She began her GM career a co-op student in the Pontiac Motor Division in 1980 and gradually worked her way up the corporate ladder.  So although her goals in making CEO didn’t exactly happen overnight, her proven track record and careful career planning certainly did payoff. 

Within the past decade, many organizations have realized the essential need for diversity in sustainable growth, innovation and success.  Although historically women have been underrepresented in the automotive industry similar to engineering and technology, organizations such as GM have made a formal commitment to focus on women as a strategic lever for growth. 

Organizations who are driven for success, are increasing the percentage of female recruits, they effectively identify and mentor women with management potential, and increase the number of women in leadership positions.  Women can help organizations relate to a customer base that includes a higher percentage of women.  Leading companies recognize the importance of having women involved in product development and innovation. 

The most important initiative that a company can take to improve their gender diversity as well as their overall strategic Human Capital planning as it relates to competitive advantage, is to measure where they are in total numbers.  Metrics is the only sure way of expecting change and growth. 

Beyond measuring, training can make a significant difference because company leaders and hiring managers may not even realize their own gender bias.  Recruiting, retaining and advancing women is not about quotas or a checklist, but rather it’s about identifying the best possible talent and heading them toward the goals of gaining economic and innovative competitiveness.  Women are currently underpaid and under-recognized, and that’s a fact.  In fact, the gender pay gap has hover at 77 cents on the dollar since 2007 (Huffington Post). However, an organization simply cannot have the goal of by excellence in service and quality in product development, if only 50% of its employee population are given a seat at the table. 

Unlike the automotive industry, the entertainment industry has realized the value of women in driving the bottom-line.  Although she is no Miley Cyrus when it comes to popularity in the media,  Mary Barra who currently ranks 35^th on the Forbes List of 100 Most Powerful Women, is proof that organizations are slowly but surely waking up and jumping on the band wagon to the best kept secret; the Woman Human Capital Advantage. 

Tracy McGrady Exit

Photo Credit: everyjoe.com

Winning athlete, Tracy McGrady, just retired from a sixteen year NBA career (Washington Post). His simple, smooth exit is the envy of all business owners considering an exit strategy.  McGrady’s got big shoes to fill, but fortunately for him, he doesn’t have to worry about who fills them. While McGrady is free to move on without a care, company owners need to consider long term plans for their business. Entrepreneurs tend to get caught up in the game and success, but forget to consider long term reality. What will happen at “the end of their season,” so to speak?

Why prepare an exit strategy?

Every business eventually has to pass the torch on. Here are some reasons to consider.

1.       Death

2.       Illness

3.       Disability

4.       Retirement

5.       Shift in market conditions

6.       Loss of key employees

7.       Vital supplier departs

8.       Competition

9.       You receive a better offer

It is easier to be prepared with a plan in the face of those scenarios, rather than taken off guard, which is why exit strategies are typically written into business plans from the beginning. However, it’s never too late to get the ball rolling.

Photo Credit: ideacrossing.org

Exit Strategy Outline:

Here are some considerations for exit strategies…

1.       Define your goals –

This isn’t just about defining business goals, but also defining personal goals. Anyone thinking about an exit strategy needs to know how much money they expect to have after the fact. Business owners need to also set goals in regards to fluidity of operations, so they know everything can continue without them.

2.       Assemble a team –
This is not a solo mission, it is a team operation. A business is like a child to an entrepreneur. Sweat, tears, and hard work have brought what was once a dream, to life. Don’t botch the hard work you’ve put in by being careless in planning your departure. Be sure to recruit financial advisors, succession experts, insurance specialists and business consultants as needed, to help you make the best decisions.

3.       Write a plan –
This will be a process. Don’t expect to meet with advisors on Monday and have this all hashed out by Friday. It doesn’t work that way. Effective exit strategies take time to develop and are extremely unique to each organization. You and those helping you need to have a cohesive vision with goals, as well as clearly defined responsibilities for effective collaboration. Keep in mind that just because a plan is concocted, doesn’t mean it is set in stone. Be flexible to adapting the goals as you go.

4.       Assess company value –

This is absolutely vital and has several components. Tracking value should be an important aspect of your operation anyway, but it’s especially crucial in planning an exit strategy. If you want someone to be interested in taking over your company, it’s got to have appeal.

Components to remember:

* Financial Value: You should know and be able to explain your finances inside and out. Track the flow of revenue and expenses. Incomplete financial information will leave a potential buyer worried about the company as a future investment.

* Operations: A job candidate doesn’t walk into an interview dressed in rags, using a broken pen and handing in a torn resume. Similarly, a business that is kept clean, with well maintained equipment will be more valuable than one that’s barely hanging together. Appearance is important, from employee presentation to atmosphere.

* Effectiveness and Performance: Performance fluctuation happens in business. The key is to be able to understand and articulate changes. Sometimes fluctuations including price increases and losing unprofitable customers are a good thing. 

* Succession Planning: If you’re the only one in charge of all store operations, with no one in training to take over, the store will be at a loss when you depart. As one would imagine, this is not appealing to potential new owners. Hence, Succession Planning is invaluable for your business. Again, seeking a replacement should be a thorough process and begin taking place long before a business owner actually plans to leave.

5.       Make it happen –

You’ve outlined your goals, gathered a team, written a plan and invested in value to position your business for appeal. Now it’s time push for the final score. All the players are ready for the whistle to blow. When the time is right, you’re ready to pass the torch and move on to your next phase in life.

With the outline above and a team to help you from point A to point B, you’re just steps away from the Hall of Fame. Remember above all, to think of the exit strategy as a process, not an event. At the end of the season, you can kick back with Tracy McGrady and exchange success stories. The ball is in your court. 

Related Reading:
Lessons from the Catholic Church: Succession Planning?
What the Royal Baby has to do with Business Succession...

Are Firms Neglecting Succession Plans?