They bring a passion that doesn't exist anywhere else and isn't tied to monetary compensation. The loss of a company's founder can have far-reaching implications and touch everyone from employees and investors to suppliers and customers. Or, if executed correctly, it can be seamless. Tom Wagner of Wagner Consulting Group in Madison has helped dozens of companies, primarily closely-held firms, prepare for the eventual transition of leadership. He said nothing can replace a well thought out and executed management transition plan, especially when it comes to preparing for the day when an organization's founder dies or retires.
Employees get their strength and comfort from knowing the founder is there.
Investors and financial institutions have confidence the company is heading in the right direction as long as they are at the helm. And, customers, who are the backbone of any company, get the attention they need and have come to expect, Wagner said. Founders, he said, know that those who follow them, the ones who have inherited a successful business, stand to lack that fire in the belly which made the company successful. You have to deal with the customer. When setting about to lay out the plan, hopefully three to five years in advance, Wagner said he is only one part in the puzzle that should also include a knowledgeable tax attorney and a financial planner.