It is important to have a good understanding of the strengths and weaknesses as well as the competitive advantages of your business or the one that you will take over through the transfer. The strategy, the culture, the administrative structure, and the size of this business, not to mention its core-competencies, all have to be taken into consideration to determine the most suitable type of managing director to take over the reins. Here are some essential questions to ask about these issues:
- What is the stage of development of your business or the one that you will take over through the transfer?
- The startup stage, the expansion stage, formalization, maturity?
- What is its business culture?
- It is important to understand the culture of a business because a part of the competitive advantage of the business may depend on it.
- What are the core competencies of the business?
- Understanding these competencies makes it possible to identify the resources and the expertise that allow the business to stand out from its competitors.
- Who are the key players at the business?
- Who will be involved in the transfer process?
- Who will be the most affected by the transfer process?
To develop a clear understanding of the business’s strengths and weaknesses as well as of the opportunities and threats that exist in its environment, you can do a SWOT analysis. The SWOT tool allows you to make a crucial assessment of the health and the current position of the business before deciding to adopt a new strategy or to sell or buy.
Diagram: Transfer and Succession Contexts
- Le Breton‐Miller, I., Miller, D. & Steier, L. P. (2004). Toward an integrative model of effective FOB succession. Entrepreneurship Theory and Practice, 28(4), 305-328.
- Pickton, D. W. & Wright, S. (1998). What’s SWOT in strategic analysis? Strategic Change, 7(2), 101-109.