When a Key Player Retires, It’s a Whole New Ballgame

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After more than a year of social distancing, lockdowns, business closures, virtual meetings, and countless other challenges, recovery seems to be on the horizon. It’s tempting to see this return to “normal” through rose-colored glasses, but planning now for future challenges can put your business on a resilient path.

Disruptions can come in many forms: a devastating hurricane, a 1,000-year flood, a global pandemic, or even your star player retiring. Like the New Orleans Saints embarking upon a new era as the legendary Drew Brees retires, every business must be ready to move forward despite big changes—internally or externally.

 

Are you ready?

The past year forced businesses to evolve at an unprecedented pace, but the need for agility will certainly outlast this phase of recovery. Whether transitions are related to a fluctuation in key players, implementation of new systems, leadership succession, growth, diversity of services, or mergers and acquisitions; businesses—large and small—will continue to change.

Significant changes, especially related to organization leadership, involve a level of risk. It’s important address such a change head-on with a solid strategy. Communication and preparation go a long way toward easing the transition for your stakeholders, employees, and clients. Working through tough questions now can help your business build in the flexibility required to withstand disruption in the future:

Has your organization developed an appropriate successor for your “quarterback?” A strong leader brings value to an organization, but it’s important to have a plan for the next star player to develop their own style and strengths.

Consider any gaps or major differences in skill sets. Next generation leaders should be well-equipped to keep business running smoothly, but they will surely need to tackle new opportunities and navigate the external factors that will define their time.

Do you have a transition playbook? As you prepare for any significant transition, assess strengths, weaknesses, opportunities, and threats in your organization. Be very aware of the company’s current financial position and plan for risk mitigation.

Today’s business leaders will need to build strategies that account for:

  • A competitive and shifting business landscape,
  • New technology and software to support efficiency and compliance,
  • Rapidly-evolving cybersecurity threats, and
  • Unpredictable disasters.

Can your company pivot strategy mid-game? Part of creating a transition strategy is implementing the right resources and advisors to support your team through big changes.

 

Tax strategy & disaster relief

Consider your organization’s tax strategy, and how the past year impacted your plan in unexpected ways. The CARES Act, American Rescue Plan Act, and other legislation instituted funding and tax credits for businesses, as well as new obligations for employers. Legislation passed throughout 2020 and early 2021 amounts to the largest government program in U.S. history. Does your company have a trusted advisor who understands the implications for your organization?

Audit & compliance

Audits provide important feedback on controls, processes, and value whether the organization is seeking financing, considering a sale, or gearing up for accelerated growth. In addition to financial statement audits, do you have reporting capabilities related to data security, confidentiality, and processing? Do your customers require a report on the internal controls over processes that you may provide? Data privacy regulations, such as GDPR, are constantly changing the rules of the game, and cybersecurity threats never have an off-season.

Software & systems

New systems can enhance your existing teams and provide the tools they need to increase efficiency and improve compliance. However, selecting and implementing a software solution that fits seamlessly into existing business operations can be a time-consuming process. With an experienced professional calling the plays, your company can put together a best-in-class technology stack to meet your everyday needs as well as help keep critical functions running during a crisis.

Valuation

The pandemic caused huge changes in succession plans, restructuring, mergers, and acquisitions across many industries. Valuation provides important insight for your stakeholders and can help drive strategy, whether you are planning a sale or simply need a clearer understanding of the state of your business.

 

Support for your team

While the announcement of Drew Brees’ retirement is bittersweet for many Saints fans, change offers both a challenge and an opportunity. We have loved every minute of Drew’s leadership, and although it’s the end of an era for our favorite football team, the future opportunities for all of our favorite players are endless. Many organizations today, including the Saints, have a chance to re-evaluate their position and discover how they will thrive, not just survive.

P&N’s dedicated professionals are helping Gulf South businesses navigate pandemic recovery and create tailored offensive and defensive plays for long-term growth and success. Contact P&N to start a discussion about your organization’s unique needs.

 

 

Categories: Expert Insight