Steve Railton, Office Managing Partner at leading audit, tax and consulting firm, RSM, looks at how today's forward thinking businesses can remain the successful businesses of the future.
Two thirds of UK businesses are family owned some 4.7 million. Statistics show that less than 50% of these businesses survive into the second generation, further evidencing the importance of succession planning. However, succession planning is not a straight forward exercise.
Having a succession plan which sets out the basis upon which a business identifies and develops its future leaders is critical for any business. Without this, current success can turn into conflict and uncertainty about the future.
However, the day to day operational demands of running a business can be all consuming, with business owners finding it difficult to focus on strategy and planning. This is most prevalent in private limited companies, with research suggesting fewer than one in four private company boards have a formal succession plan in place.
To prepare an effective succession plan you must have a clear and deep understanding of your current business including amongst other things, its values, operations and
customer base. This will ensure that any new management team can provide for effective continuity on the most important aspects of the business.
At RSM, we are finding that an increasing number of privately owned businesses are recognising that to effectively plan for the future it is important to have a team of advisers who are skilled and proficient in providing strategic planning advice. Advisers who have a deep understanding of the business and its leaders.
At RSM, providing strategic advice and advice on succession planning is an increasingly significant part of the service we deliver to our clients. It is therefore important that we practice what we preach.
This year we have seen a significant investment in our North East team. The promotion of three new partners, Neil Hindley, Lucy Robson and Richard Urron has enhanced our accounting & advisory, audit and tax practices in the North East. Together with the significant number of staff recruited in our Outsourcing department,
headed by Director, Chris Maughan, and with our graduate and school leaver intake, we now have a team of almost 150 with 11 partners in our Newcastle office.
Investing time and resources into developing our talent and future leaders is an important part of RSM’s national and local strategy. We have ambitious plans to increase our market share in the North East and to be recognised as the first choice adviser to the mid-market. This can only be achieved by recruiting, developing and retaining the best people, in turn driving employee engagement, a vital element of any business. Having employees who are committed and enthusiastic about their work drives positive action to further enhance the business’ reputation and interests.
Our clients and staff remain at the heart of our business and our plans for the future. Understanding their needs and helping them to look to the future remains our priority as we continue to build strong, collaborative relationships with the great businesses we have here in the North East.
