ood preparation is what unlocks hidden profit on most projects—specifically, timely pre-planning and handover practices between estimators and project managers.

Construction companies that do these two things often outperform their counterparts. But most companies wait until the last minute to prep. Their handovers are often rushed or incomplete.

Their projects will probably still be completed. And most will still make money. But it comes at a cost: additional stress, frustrated clients, and lost profits.

Succession planning mirrors this. Most successions are poorly prepared for and handovers are clumsy. This slows momentum, creates confusion, loses opportunities, encourages staff turnover, and more.

Businesses can survive last-minute, poorly communicated leadership transitions. But who is in business just to survive?

The good news is that these costs are avoidable.

This “succession gap” is difficult for many companies to bridge. For most of human history, younger generations have been larger. Planning habits and assumptions are built on this idea of a plentiful supply of successors. But that reality has changed, and not everyone is ready for it.

However, this provides a competitive advantage for your company. Few companies sufficiently prepare. If you are one of the few that does, you’ll navigate your leadership transition more effectively than they will.

Form a search committee: A small committee, often three to six members, should oversee the entire process and make the final decision or submit recommendations to a larger group, if one exists. Unless they are an owner, the outgoing leader should not be a member but can be consulted.

Clear leadership: Ensure one person within the committee is responsible for driving the process to avoid stalling.

2. Prevent roadblocks: support the outgoing leader with personal and financial direction

Personal vision: Roughly 85 percent of the time, the outgoing leader will self-sabotage the succession process if they don’t have a compelling personal vision for their future, especially one that matches their energy level and supports their identity and purpose. A counselor or coach can help them.

Financial readiness: Many high-income earners are less prepared for retirement than you might imagine. Support your outgoing leader to work with a financial planner, so they are prepared for retirement or their next chapter. This will also help prevent delays in succession.

3. Create clarity about the identity and future of the organization

Values and vision: The owners of the company must have a clear sense of organizational values and a vision for the future to evaluate the successor’s alignment and ability to lead.

Leadership characteristics: Describe the necessary leadership characteristics for the successor. These should be derived from what it takes to accomplish the future vision. It can include alignment with value, skills, qualifications, experience, and personality.

4. Estimate future leadership and structure needs

Organizational requirements: Based on the vision, estimate future needs in terms of staffing, facilities, and other resources. Anticipate that some people may choose to leave with the outgoing leader.

Plan for change: Successful succession anticipates and prepares for staff and organizational changes beyond the executive succession. While no one knows the future, it’s possible to prepare for likely scenarios.

5. Stabilize and complete

Steady the boat: Mitigate instability by addressing unresolved conflicts, formalizing roles, transferring knowledge, updating policies, and completing legacy projects.

Clarify timelines: Define ideal timelines for the search, placement, onboarding, and getting the new leader up to speed.

6. Grow or search, and select

Internal and external candidates: Define eligibility requirements and clear criteria for selection. Internal successions often have higher success rates if they can meet requirements, but external candidates can widen the pool of options.

Unambiguous transfer date: Set a clear transfer date and stick to it to avoid increased uncertainty in the organization and an undermined process.

7. Onboarding and transition

Plan and timeline: Develop a plan and timeline for onboarding and handover, tailored to the successor’s needs.

Participation and orientation: Ensure the successor participates in key areas of the current leader’s role and gets oriented with key functions and staff.

Mentoring and coaching: Provide mentoring and coaching to the successor to support their transition into the role.

Stabilizing Phase (up to twelve months before handover): Led by the current executive and leadership team to ensure stability and wrap up legacy projects or unfinished business.

Transition Phase (six to twelve months): Identify and announce the new executive, clarify temporary roles, and stabilize the organization’s various aspects.

Establishing and Bonding Phase (six months to one budget cycle): Led by the incoming CEO and board to build trust, settle into the role, and set new strategic directions.

Mitigate these risks through open communication throughout the transition. Regular updates and transparent discussions help alleviate uncertainties. It builds trust among stakeholders.

Succession planning, like pre-planning and handovers in construction, helps ensure success. Safeguard your legacy and position your company for growth and profitability by giving your leadership transition the attention it deserves.