If you have ever seen the cult classic Tommy Boy you should know that having a succession plan in place does not guarantee that your succession plan will be successfully implemented.
If you have never seen it, you should since it’s hilarious. It tells the story of Thomas R. “Tommy” Callahan III’s attempt to save his family’s business, an auto parts factory, from being foreclosed on by the bank or sold off after his father, “Big Tom,” suddenly dies of a heart attack after marrying a con artist.
“Big Tom” had obviously worked with a succession planning attorney because there are different classes of
Don’t Assume Your Family Can Take Over
In the movie, Tommy takes a job at the family business after barely graduating from college after seven years. Big Tom assumes that his son will take over the family business when the time comes, but Big Tom and Tommy are not really preparing for when that day will come. Tommy does not take his job seriously, and Big Tom just looks the other way.
Business owners planning on passing their business on to the next generation need to be sure that the family members they hope will take over are interested in doing so, and have the skills necessary to do so.
Your Reputation May Be Your Biggest Asset
In the movie, the bank threatens to foreclose because it was relying on Big Tom to lead the company’s expansion into brake pads. A potential buyer plans on using the brand name and Big Tom’s reputation to expand its own
Business owners need to consider whether their business can succeed without them at the helm. If not, it is going to take a lot of hard work in order to get the business in a shape where it can be passed on or sold as a going concern instead of
Employees Play A Much Larger Role Than Many Employers Anticipate
Tommy is lucky that the company’s employees are loyal and competent. Big Tom obviously invested in his employees, but he did not really include them in his succession planning. This is a mistake in the
Employees are often a company’s biggest asset. They must be on board with any succession plan if that plan has any hope of success.
Putting A Plan In Action Is Better Than Putting A Plan In Place
The big lesson from the movie is that even the