As the Wall Street Journal pointed out last week, many Mom-and-Pop operations lack formal crisis plans – and are shutting down as a result of the current economy. In our experience, this lack of planning is not limited to family enterprises. It is disturbing how many firms – small, medium and even large – lack formal planning for crises, for succession, and for growth.
It is not always for lack of vision, or a desire to be proactive. Many times, it is for lack of know-how, beginning with where to start. Companies who use a systematic, process-oriented methodology to plan for the future stand a much greater chance of being successful. Have you thought about planning for these issues?
- A five-year strategic growth plan
- Leadership succession
- Estate tax impact
- Continuity of operations in the case of a natural disaster
Firms would do well to ensure that they think about crisis planning as much as they do operations or finances, utilizing expert third-party facilitators if there is no in-house capability. This is especially true in today’s uncertain business environment, where inflexibility or failure to act can be a death knell.