A Look at Succession Planning Models

Jerry Guttman leverages decades of financial advising experience at Total Living Plan in Arizona, where he serves individuals, families, and business owners. A former Society of Financial Awareness member of the year, Jerry Guttman also authors financial articles for publications that include the Arizona Republic.

Throughout his career, Mr. Guttman has advocated for thoughtful estate and succession planning and taught client’s to not neglect the next generation. Proper succession planning provides leadership continuity while also fostering future business health.

A well-thought-out succession plan, which can also provide for heirs and help to fund retirement, consists of financial and operational decisions that guide who will assume control of a business in the future. Family owned businesses may wish to keep management within the family, but outside efforts may be required in other cases. For example, business owners can engage in a mass recruitment succession planning model that involves maximization of human resources to identify capable leaders.

Other succession planning models include specialized recruitment and outside recruitment. Specialized recruitment involves identification of a few individuals who are then groomed to assume control of a business. Alternatively, outside recruitment requires a company to identify competent leaders outside of the organization.