Businesses that stand the test of time go through many changes. The challenges that new business owners face give way to others as the business matures and grows. Changes in how the business operates require changes in roles and responsibilities. In some cases, that requires hiring additional staff. In other cases, it involves transitioning current employees into new positions.
At some point, you as the owner or principal too may find it’s time to transition into a different role. Perhaps you’ll decide to sell the business, develop a new revenue stream, or step back from day-to-day operations to spend more time on strategy and client acquisition. Whatever the reason, you’ll want to try to minimize the amount of disruption such a transition is bound to cause.
Consider the whole enterprise
Someone once likened a business reorganization to changing the tires on a moving vehicle. Care must be taken so that the business continues to operate as smoothly as possible while the transition takes place. That requires planning and well-managed execution.
A business is its own ecosystem. Its operations and survival depend on the successful interaction of all of its components. When change occurs, it temporarily disrupts the ecosystem until it adjusts to the new configuration. Preparing the system well in advance for the change can help to minimize the level of disruption and speed up the time to recovery.
Ease into the transition
Sometimes external circumstances may force a sudden transition. Usually, though, you can plan well in advance and phase in the transition gradually. As you do so, you’ll want to keep in mind each of the following aspects of the transition.
Reorganization
What changes to the structure of the organization will be needed to accommodate the transition? What new roles or assignments will result? Will teams need to be created or reformed? Will the leadership and/or supervisory framework be modified? Who will lead the reorganization? What is the timeframe for the reorganization to be initiated and completed?
Dislocation
A transition can create new opportunities for staff. Nonetheless, as the saying goes, you can’t make an omelet without breaking a few eggs. Even in the best of circumstances, some level of disruption is to be expected. Moving into a new role, even a desirable one, requires some time for adjustment and learning. Almost inevitably, these changes will affect business operations and employee productivity to some degree for some amount of time. You need to build some leeway into your transition plan and timing to allow for that. Keep in mind that you, too, will need time to adjust to your new role, whatever that is.
Expectations and emotions
Systemic changes always evoke a lot of emotions. Employees may be concerned about their positions or hopeful of a promotion. They may worry about how the change will affect the future of the firm. Leaders and supervisors need to acknowledge the legitimacy of such feelings and work through these concerns.
Communicate and collaborate
Anyone who has gone through an organizational change knows all too well that an information vacuum quickly gives rise to speculation and rumor. Communicate openly and often with all staff during the transition process. Involve them in discussions concerning the new organizational structure and any other fundamental changes to the firm’s direction or operations. The more buy-in you have from staff, the smoother the transition will be.
It’s essential that staff know that consideration is being given to their succeeding in their new roles and responsibilities. Share with them whatever measures will be taken to help them adjust to the transition.
Plan for your own success
Guiding your firm through the transition is a top priority. But don’t neglect your own needs as well. Take the time and whatever steps necessary to prepare yourself for the transition to help ensure your future success. Establish well in advance a support network of peers and specialists whom you can turn to for advice and encouragement. Have a clear vision of what success looks like for you. Set some reasonable goals and milestones to provide a path forward and a check on your progress. Cultivate relationships with new colleagues, stakeholders, influencers and others you need to collaborate with.
Transitioning to a new role can be challenging but also fulfilling. With preparation and planning you can avoid some of the bumps in the road. More importantly, you can realize a new phase for your firm that offers new opportunities for yourself and every member of your team.
Want to hear Pearl Collective’s successful transition story? Listen to our podcast episode where co-founder Erin Weir discusses the ups and down of transitioning her own role in the business.