Image courtesy of NBC Universal photographer Chris Haston.

On this season of The Office, avid fans watch the departure of Michael Scott – nervously, hopefully, and with the occasional tear in our eye – and wait to welcome the introduction of Dunder Mifflin Scranton’s new Regional Manager. Sparked with laughs and inevitable cringes, we see not only a story specific to sitcom television, but situations very real to businesses going through leadership succession.

Take, for example, an exchange between Michael and soon-to-be boss Deangelo Vickers as they debate over communication procedures (i.e., answering the office phone):

Deangelo: Could you say the greeting without saying your name?

Erin: "Dunder Mifflin, this is." Oh, yeah I like it.

Deangelo: "Dunder Mifflin, how may I assist you?"

Michael Scott: I sorta liked the old way.

Deangelo: I just prefer it without the name, I thought . . . you know. I gotta start managing at some point, right?

Michael Scott: You're right, I'm sorry . . . but if it's not a big deal, I think we should stick with the old way.

Deangelo: It really isn't.

Erin: Okay, good.

Deangelo: Well . . . I'd like to change it actually.

Michael Scott: Well, whatever you think will work.

Deangelo: Yeah, I think a change would be nice.

Michael Scott: Or you could do the old way, whichever ever one you think you should do . . . [The phone rings; Erin looks utterly confused; both bosses are waiting to see what she says; she looks for help; she answers the phone:]

Erin: [Answers] . . . Uh . . . I'm so sorry. [Hangs up]

The analogy of The Office and small businesses is not perfect; Dunder Mifflin is a mid-sized company whose financial value and corporate culture would not be necessarily affected by a change in Regional Managers. We do see, however, conflicts that arise due to differing management styles, especially important in an office where the long-term leader’s style has given so much to motivation, energy and unity. Everyone in The Office has identified Michael Scott with Dunder Mifflin. As the succession takes place, just as in small businesses, both the next leader and existing employees must work together to develop a new identity of corporate culture.

Succession planning can be an opportunity for growth and adaptation to an ever-evolving economic climate. Succession planning is not about replacing the current leader with the closest clone possible; successful succession should be linked with the business’s strategic objectives and reflect how the business must to evolve to achieve these objectives. The new ideal leader may well bring in a different set of strengths and skills that will help develop create a solid foundation for future growth. (Just like Season 8.)

Succession is just one of many options when it comes to exit planning. Whatever choice is right for you and your business – selling the business, transferring ownership or even closing shop – this rule holds true: the more, and earlier, you can think about the exit with clear goals in mind, the better it will be for you and your company.

Our company recently hosted a Business Owner Summit entitled "Your Company's Future:  Transition, Exit & Succession Planning."  In attendance were more than 30 CEOs, Presidents and Business Owners.  Speakers led sessions on determining your future, developing your key executives, evaluating and grooming successors (planning yourself out of your job), business valuation techniques, and the legal, tax, financial and emotional impacts to consider when structuring handing over the reins.  Although the attendees were at many different places in their business lifecycle, it quickly became apparent that the questions our panel of experts were asking were critical for every owner at any stage of their business.  Listed below are the top questions Brad Kaplan, Partner at Schwartz, Simon, Edelstein, Celso & Zitomer and Larry Leaf and Peter Engel, Partners at Leaf, Saltzman, Manganelli, Pfeil & Tendler  walked attendees through.  They find all business owners must answer these questions to build the very best succession and exit plan strategy.  See how many you can answer.

1. Will my kids want to run the business and, do they have what it takes?
2. Can my employees or partners step up if I'm no longer here?  (And, can I trust them)?
3. Who else may want to buy my business?  Competitors?  Suppliers?  Customers?  Investors?
4. How do I retain and reward employees?  When do I give them an ownership interest?  And, what are the pros & cons?
5. What is my company worth?  How much do I need to retire?  Do I need my salary and business cash flow?
6. When do I want to exit my business?  And, what is my exit horizon?
7. Can my successors afford to buy my business?
8. Will my employees buy into my exit strategy?
9. How do I market trade secrets and private information and still keep them safe?
10. What advisors shall form my succession planning team?  And, who are the key players?

How did you fare?  Have any others we can add to our list?  If you do, please post them here - we love feedback!