Ask These Questions Before Your Leadership Transition!

PSMJ Resources, Inc.
Posted on: 01/18/19
Written by: PSMJ Resources, Inc.

photo-1441716844725-09cedc13a4e7-1We all know that an ownership/leadership transition can be one of the most challenging (and stressful!) decisions you’ll make as an architecture or engineering firm leader. 

So, to make it a little easier, PSMJ has compiled a list of questions to ask yourself—and your board—to make the seemingly unknowable a little more familiar.

After a leadership transition is too late—you need to take every opportunity to prepare yourself before you make that big leap. So do it today: Ask these questions before your leadership transition! Be sure to write these answers down, not just answer them aloud—having them concrete on paper will make all the difference!

1. Describe how you pick future owners.

2. When was the last time you updated your firm’s buy/sell agreement?

3. How many owners are there?

4. Do you pay year end bonuses instead of paying taxes?

5. Has anyone ever quit and taken clients and/or staff with them?

6. Should partners count on “selling” their ownership as their primary source of retirement income?

7. Is there mandatory sale of stock?  At what age?

8. Are children of founders good leaders? Why/Why not?

9. What is an Associate at your firm?

10. What should be the ratio of owners to staff? Why?

11. Is there a difference between leadership and ownership? Which is more important?

12. Is your Board of Directors effective?  Why or Why not?

13. Do you have outside Directors?

14. What generation is your firm? Does this impact how it operates?

15. When should partners leave? Why?

16. On what basis would a partner be fired?

17. Have associates ever quit and formed a competing firm?

A framework can help you prepare for a successful ownership transition. Leadership/ownership transition is inevitable…it is going to happen whether you want it or not.  Take control of your and your A/E firm’s destiny and start planning for transition today.

Now we want to hear from you: What are your firm's leadership/ownership transition challenges? 

 

About Ownership Transition_Ebook-1.jpg

PSMJ's complimentary e-book About Ownership Transition goes into real tangible insight and advice on:  

  • How to start planning for transition on the day you start your firm

  • An understanding of how transition effects every management decision you make

  • Common pitfalls in the transition process and how to avoid them

  • How to keep your architecture or engineering firm focused on its vision through a transition

Download it here!
 
PSMJ_2019 OLT Icon
A/E/C firm owners who fail to plan properly on ownership transition are leaving the firm exposed to the potential for undesirable outcomes - including significant loss of firm value, brand equity deterioration, and loss of market position. Instead of being another ordinary seminar teaching you how to develop a plan, PSMJ's A/E/C Ownership & Leadership Transition Roundtable takes you through virtually every transition planning obstacle you will encounter (from affordability to leadership development and more) and how to overcome it.
 

Register Now!

 

 



 

 

SUBSCRIBE TO BLOG:
January 14, 2022

Signs Point to Continued Optimism in A/E/C Markets

  For many architecture, engineering, and construction (A/E/C) firms, 2021 was a year of robust growth and record-setting profits… and confidence appears high that 2022 will be..

Read More
January 10, 2022

2022 AEC Business Compliance Checklist

This message is brought to you by our partners at Harbor Compliance, providing expert services and purpose-built software so you can take government licensing requirements in..

Read More
January 3, 2022

AEC Firms Take Steps to Benefit from Infrastructure Bill

Actively upgrading CRM systems can help win more opportunities This message is brought to you by our partners at aec360. A key solution from HSO, Microsoft’s largest independent..

Read More