In Sports, you very seldom see a good succession plan. Most times, the transition of the new superstar is when the other superstars have left or retired, leaving the team to struggle for a few years. But as players age, so too, does management.
The Golden State Warriors, with the development and inception of Jonathan Kuminga, is an example of what a good succession plan looks like.
For full disclosure The Golden State Warriors are my favorite basketball team, they’ve been that since Steph Curry’s been a member. And Jonathan Kuminga is my second favorite player, and on January 2nd Golden State defeated the Orlando Magic 121-115.
During this game, I began to see many parallels between Steve Kerr’s leadership of the team and a small business with a succession plan. Steve Kerr has a reputation for not playing his young players much but circumstances forced him to lean on Kuminga for good defense and minutes and Jonathan Kuminga responded with 34 minutes of play, he scored 19 points and 6 rebounds; showing that the young members of the organization will learn and become valuable assets to the organization.
Giving young players or lower management employees the opportunity and trust to step out and prove themselves is valuable to organizational continuity. This experience allows them to make mistakes and have them monitored by top management. Failures are the best teaching tool to lead them to top management.
Despite how many mistakes Kuminga will make, and he will make plenty, they can be monitored and corrected on the court in real time.
Small business owners will face the inevitable task of developing a continuity plan to sell their businesses. To be able to sell your business at a marketable level and you want to have full confidence in selling your business, you have to also consider your employees. Your employees whom you’ve trained and prepared for this transition could also be your future buyers.
Selling your business to your employees provides an assurance of a smooth transition as well as getting an equitable price for your business. Why is this important? Because only 20% of all the business listings for sale in a given year are sold. If owner financing is applied the owner may still have a small stake in the business and the gradual transition is good for both parties. It allows you to be out of the business and have more leisure time and also still retain partial ownership and become a mentor to the new owner for a set period.
Jonathan Kuminga is growing within a system where the Superstars like Steph Curry, Klay Thompson, and Draymond Green can mentor him as well as transition to their new roles within the organization, and it too would like to continue the growth of the Golden State Warriors. All sports teams never have that type of transitional success. The only other transitional success I can think of is in 2008 when Aaron Rogers became the starting quarterback for The Green Bay Packers after sitting on the bench under Brent Farve for 3 years.
Sports teams often prioritize short-term success over long-term planning. This can lead to a lack of foresight in developing succession plans for key players and coaches, resulting in abrupt transitions that disrupt team dynamics and performance.
Aging athletes and retirement are inevitable realities. However, many teams fail to adequately plan for these transitions, resulting in sudden departures of star players without suitable replacements or succession strategies in place.
Building a successful sports team requires a continuous cycle of talent recruitment and development. However, some teams struggle to identify and nurture promising young talent, leading to gaps in the roster when key players retire or leave the team.
What has been an enormous benefit to the Golden State Warriors is the fact that the owners do not have much of a high level of greed to hoard the money for themselves. Golden State has the highest salary payout than any other pro basketball team and yet they are still willing to pay to keep players for the longevity and continued success of the team. When his time does come I’m sure the Warriors will make good on paying Jonathan Kuminga.
Organizational culture and leadership play significant roles in shaping a team’s approach to a business continuity plan. Teams with strong leadership and a culture of stability are more likely to implement effective succession strategies and navigate transitions successfully.
Like a Small business, which an NBA team is, investing in youth like Jonathan Kuminga’s significant playing time and a starting role alongside veteran stars like Steph Curry, the Warriors are investing in the future of their team. This approach allows Kuminga to gain valuable experience and confidence while learning from experienced teammates.
Balancing Youth and Experience
Kuminga’s presence in the starting lineup demonstrates the Warriors’ commitment to balancing youth and experience on their roster. By pairing young, dynamic players with seasoned veterans, the team maximizes its competitiveness in the present while also preparing for the future.
Seamless Transition
Kuminga’s emergence as a starter reflects a seamless transition within the Warriors’ roster. Instead of relying solely on established stars, the team integrates young talent into key roles, ensuring a smooth succession process and maintaining competitiveness over the long term.
Flexibility and Adaptability
The Warriors’ willingness to adapt their lineup and rotation to incorporate young talent like Kuminga demonstrates their flexibility as an organization. By embracing change and innovation, the team stays ahead of the curve and remains competitive in a constantly evolving league.
Small businesses can follow a similar strategy to sports teams by hiring young talent and grooming them for ownership through a strategic succession planning approach.
Here are 7 ways in which you can achieve that
Identify Potential
Small businesses should identify young employees who show promise, ambition, and a strong work ethic. Look for individuals who demonstrate leadership qualities, innovation, and a passion for the company’s mission and values.
Invest in Development
Once promising young talent is identified, invest in their development through training, mentorship, and professional growth opportunities. Provide them with exposure to different aspects of the business and opportunities to take on increasing levels of responsibility.
Set Clear Goals
Establish clear goals and expectations for young employees, outlining the skills, knowledge, and experience they need to develop and advance within the company. Provide regular feedback and support to help them progress towards these goals.
Foster Leadership Skills
Encourage young employees to take on leadership roles and initiatives within the organization. Provide opportunities for them to lead projects, collaborate with cross-functional teams, and make strategic decisions that impact the business.
Create Ownership Opportunities
Small businesses can create ownership opportunities for young employees through profit-sharing arrangements, equity participation programs, or succession planning initiatives which come in the form of a Supplemental Employee Retirement Plan{SERP}. Offer incentives that align with long-term goals and reward contributions to the company’s growth and success.
Mentorship and Support
Pair young employees with experienced mentors within the organization who can provide guidance, advice, and support as they navigate their career paths. Mentorship relationships can help young employees develop key skills, expand their networks, and gain valuable insights into the business.
Encourage Innovation
Foster a culture of innovation and entrepreneurship within the organization, where young employees are encouraged to think creatively, take calculated risks, and explore new ideas. Create an environment where innovation is valued and rewarded, and where young employees feel empowered to contribute their unique perspectives and insights.
By following these strategies, small business owners can guarantee themselves a future buyer of the business, solidify their retirement needs, and effectively groom young talent for ownership and leadership roles, ensuring a smooth transition and continuity of success for the company in the long term.
The value of a SERP-Supplemental Employee Retirement Plan is that it is a non-governmental regulated plan within the business. The flexibility that the employee can use these funds, after a company policy vesting period, as a down payment for the purchase of the business.
A solid succession plan can reduce taxes, and ensure the transition of the business. Staying relevant within the community may also be part of the legacy of your business.
Developing key people to succeed in the business, carrying the commitment to community and the commitment of the business culture that has been created will be guaranteed in a type of succession that transitions ownership from within.
This is just one of the strategies for a succession plan and help lead you to a fruitful retirement.
Set up a time to see what a succession plan looks like for you.
