Log In | Become a Member | Contact Us


Market Intelligence for Printing and Publishing

Connect on Twitter | Facebook | LinkedIn

Featured:     Print 2017     Production Inkjet Tools & Resources     Industrial Print Analysis     European Coverage     Conversations on Print Podcast

Jim Russell of New Direction Partners on succession planning

Published on December 13, 2010

Succession planning is important in any business. JIm Russell, a partner with New Direction Partners is here to tell us some key factors to look at in succession planning.

Cary Sherburne:  Hi, I’m Cary Sherburne, Senior Editor at WhatTheyThink.com, and I’m here with Jim Russell, who is a partner at New Direction Partners.  You guys do a lot of different things, but one of the things you do is counsel people on succession planning, right? 

Jim Russell:  That’s correct; we do. 

Cary Sherburne:  Maybe you could tell us something – I don’t want to give away all your trade secrets, but maybe you can tell us a little bit about what people should be thinking about in terms of the next generation of management. 

Jim Russell:  Well, we think the first step in good succession planning is to start early, maybe two to five years, but before you want to make a transition.  And really, number one is to determine what your own personal goals are.  Do you want to exit the business and have no ownership any more?  Would you like to have some ownership that’s transitioned to just the management of the company?  And so once you determine that, you can start working on a plan and decide where you want to go with your succession planning. 

Cary Sherburne:  And a lot of these are small family businesses.  Right?  So what happens when the family, the kids, don’t have any interest in the business or don’t want to move on?  What happens? 

Jim Russell:  Well, that’s certainly one of the first keys you have to determine is, do you have a family member that wants to be involved in the business?  Are they qualified to run the business?  And if not, then you have to seek an alternative.  And an alternative may be, may be you’ve got a management person or people who you really trust and you’re comfortable handing over the business to them.  That’s viable if you want to maintain ownership.  And of course, another option is to just outright sell the business. 

Cary Sherburne:  And so, if you look at kind of what you see going down in the marketplace, what percent of the businesses would you say are actually moving into another generation of the family versus saying, you know,  I just want out.  Let’s sell it. 

Jim Russell:  I don’t know a number, Cary, but I think that in today’s market, we’re seeing a lot more people who are wanting to get out of the business and they’re selling to a competitor or someone else in the industry rather than passing it on to a family member.  That’s not to say it’s not happening, but I think that option is declining. 

Cary Sherburne:  You know, if there is a family member, it would seem like you would want to even start earlier than the two to three years you talked about.  I remember talking to somebody recently who was trying to help a friend, third-generation printer, you know, figure out some strategy and he said to me, “Well, this a third-generation business, I’m sure they know what they’re doing.”  And I’m like I don’t know that I would assume that.  You know, so, I mean to be able to groom the kids that are maybe going to take over even back further than the two to three years. 

Jim Russell:  Absolutely.  I mean, I think certainly you’d be grooming the kids if they have an interest much sooner than that, but I think the actual planning of moving yourself out of the business is a two to five-year process and so that’s what we’re referring to. 

Cary Sherburne:  Yeah.  That’s great.  So that’s good advice for folks and we appreciate your sharing. 

Jim Russell:  All right, thank you.  Nice meeting you. 

Email Icon Email         

 

Post a Comment

To post a comment Log In or Become a Member, doing so is simple and free

 

 

Recent Videos

 

Video preview: Frank: British Attack on Apostrophe Must Be Stopped

Frank: British Attack on Apostrophe Must Be Stopped

Published: August 18, 2017

Frank bemoans the British attempt to eliminate the apostrophe in place names. So far, only Frank has spoken out against this perversion of orthography as misguided souls take a hammer to our grammar.

 

Video preview: Third-Generation Printer Cockrell Enovation Improves Productivity with HP Indigo 10000

Third-Generation Printer Cockrell Enovation Improves Productivity with HP Indigo 10000

Published: August 15, 2017

John Cockrell, Vice President at Fort Worth based Cockrell Enovation, has used its new HP Indigo 10000 press to migrate work from offset for more efficient production. Hear what he has to say about the future of offset in his business and the kinds of applications he is producing on the HP Indigo 10000. HP Indigo's Business Development team has been a partner in this transition.

 

Video preview: Bud Light, HP and Esko: From Ideation to Production in Less than a Month

Bud Light, HP and Esko: From Ideation to Production in Less than a Month

Published: August 14, 2017

Michael Cox, a Solutions Architect at HP, Inc., talks about HP's collaboration with Esko to create limited edition Bud Light cans for a special event using Studio for Sleeves and HP's Mosaic in the design process. This eliminated the need for physical samples in the approval process. From ideation to production in less than a month -- amazing!

 

Video preview: Frank: Xeikon Roll-fed Digital Press 25th Anniversary

Frank: Xeikon Roll-fed Digital Press 25th Anniversary

Published: August 11, 2017

We are coming up on the 25th anniversary of the Xeikon roll-fed digital color printer. Frank shows some of the classic work done by this venerable machine, which is still helping printers worldwide to make money.

 

Video preview: COT Holdings Upgrades to HP Indigo 12000 for Enhanced Productivity

COT Holdings Upgrades to HP Indigo 12000 for Enhanced Productivity

Published: August 8, 2017

Nigel Worme, Managing Director of COT Holdings in Barbados, was an early adopter of HP Indigo digital presses. The third generation family company is now on its 5th generation of Indigo presses with the acquisition of an HP Indigo 10000, now field upgraded to an HP Indigo 12000, providing a single sheet size for offset and digital presses that streamlines workflow.

 

Video preview: Inside Mossberg & Company's Evolving Commercial Printing Operation

Inside Mossberg & Company's Evolving Commercial Printing Operation

Published: August 7, 2017

James Hilman, CEO of Mossberg & Company discusses their evolution from sheetfed commercial printing on paper to digital and flexo printing for packaging, even on cans!

 

View More Videos

 

Become a Member

Join the thousands of printing executives who are already part of the WhatTheyThink Community.

Copyright © 2017 WhatTheyThink. All Rights Reserved