In this early stage of company development it is normally the founder that determines its potential success. This visionary leader is responsible for developing the company vision and the tactical plan and generally oversees the company climate and the workforce producer. But what becomes of this central character when that character is no longer physically present? It influences business operations, employees’ morale and financial results of the company whenever founders either die or resign.
In this article we will look at some of the problems companies experience when a founder bites the dust, analyze some of the possible solutions and examine measures that should be put in place to reduce the adverse effects on the business. We will also address how to get ready for this since founders are not immortal and how we can manage this inevitability.
The Implications of a Founder’s Death
Unable to verify it with the respondents, I found that when a founder dies, it is not only the expert knowledge, or the vision, but, to some extent, even the personality, passions, characteristics, and management style of the founder also exit the company. This can be quiet problematic to small business whereby the proprietor’s influence was instrumental to the organization. Here are some of the consequences of losing a founder:
– Leadership vacuum: Having a founder leave suddenly means an organization loses someone with vision, someone the rest of the team cannot replace.
– Loss of vision and strategy: Venture owners are usually able to see where the company is going. It becomes difficult for these businesses to sustain this vision once these people are out of the businesses and hence loses its vision.
– Employee morale: It is for this reason that the death of a founder can be highly disturbing to the employees for mourning occurs and productivity lower as changes are implemented.
– Business continuity: That is why the company is required to respond to the change, acknowledge the loss and facilitate the continuation of its operations.
Potential Solutions and Strategies Potential solutions and strategies are , Solution
Usually when a founder dies the process of managing the company after is a challenging thing. But, if managed correctly, the loss has minimal impacts to the potential progresses of the businesses. Here are some strategies to consider:
– Develop a succession plan: Development of an adequate succession management plan can reduce the effects of losing owning through implementing a succession plan. This plan should also be able to state who could possibly take over a leadership position and what his or her duties will entail, principal decision making factors in cases where the founder is no longer alive.
– Foster a strong company culture: It is very essential to explain that the issue of company culture is critical for building a healthy and sustainable business especially when faced with the absence of a founder. Indeed, an employee engagement index revealed that employees, who have an association with their company’s strategy and mission, are less likely to disengage or become unmotivated by any circumstances that may come along.
– Communicate openly: Subsequently, in sharing the information that the founder has passed on, as well as the action plan to carry on with business operations, morale can be sustained and rumours disowned. From this, the employees can be in a position too appreciate the responsibilities bestowed to them in the organization and the role they are bound to play in the future of the company.
– Seek external support: It is always hard for any business to go through the process of a lost founder. Although this is important, in this period we need some kind of advisor, maybe a mentor, or a business consultant.
– Build a strong management team: And this means that it is very important to hire the right management team that will able to encourage the vision and even the strategies of the company. This can assist a firm to counterbalance the loss of a founder, and this will assist a firm to keep going because they may not be a founder to lead the company from the front.
Conclusion
Loss of a founder is one of the toughest strategies that any company has to face. The main fact is that this loss is unavoidable and can be avoided only in the next way, if the company established themselves and try to avoid this loss. Through proper construction of the company culture, attracting outside help and making sure that the management team is solid, businesses can continue to thrive even without the leader that started it.
In realizing the possible impacts of a founder departure, firms are placed in a better position to address some of these issues if not all, to ensure that the intended visions and corporate plans are achieved. Whoever said that the death of a founder defines an end to the company’s story, needs to rethink their words because, in actuality, it is the start of a new chapter and it is up to everyone else on the team to ensure that they continue with the vision and pen the success story of their business over again Newly.
